FORENSIC ACCOUNTING TECHNIQUES AND FRAUD DETECTION: EVIDENCE FROM LAGOS STATE PUBLIC SECTOR

The need for accountability cannot be over emphasized. Despite advancements in fraud detection technologies and forensic accounting practices globally, organizations in Lagos continue to face significant gaps in recovering losses, delays in detection and limitations in accuracy due to infrastructural, technical and regulatory constraints. The study examined the effect of forensic accounting techniques (investigative tools, litigation support, digital analysis and data mining) on fraud detection (losses recovered, detection time, and accuracy rate)in Lagos State public sector.. The study employed a survey research design with a population of 2400 staff across Lagos public finance and audit departments. A sample size of 343 respondents was selected using Taro Yamane formula and stratified sampling technique. Data were collected via structured questionnaires and the instruments reliability was confirmed with Cronbach’s Alpha coefficients and KMO tests ensuring robustness in measurement. Data was analysed using descriptive and multiple regression analysis to test the hypothesized relationships. The results and findings showed that forensic accounting techniques had a positive and significant effect on losses recovered from fraud detection (LR) for hypothesis one (Adj R2 = 0.714, F(4, 290) = 177.841, p < 0.05). Forensic accounting techniques had a positive and significant effect on detection time (DT) for hypothesis two (Adj R2 = 0.831, F(4, 290) = 350.823, p < 0.05). From the findings and results, the study concluded that forensic accounting techniques has a significant effect on fraud detection in Lagos state. It was also seen that artificial intelligence further strengthened these effect acting as a significant moderator that enhances the efficacy of forensic tools. The study however recommended that Lagos state should establish a central asset recovery and forensic support unit to coordinate recovery efforts across agencies. Furthermore, they should mandate forensic accounting input at the onset of all major financial investigations.