The Relevance of Forensic Audit and Investigation in Resolving Tax Related Fraud and Malfeasance

13 Pages Posted: 11 Aug 2015

See all articles by Cordelia Omodero

Cordelia Omodero

Medonice Consulting and Research Institute

Newman Enyioko (PhD)

Medonice Consulting and Research Institute

Date Written: August 6, 2015

Abstract

The incessant tax related fraud and malfeasance resulting to corporate collapse and the failure of the statutory audit to detect and prevent fraudulent activities which had led to the impoverishment of investors had given rise to the need for forensic audit and investigations. In view of the above, this paper considers the application of forensic audit and investigation in resolving tax related fraud and malfeasance. The study is a theoretical research which considers the roles of forensic auditors in combating fraudulent activities, distinction of forensic auditor and statutory auditor, and impact of forensic auditor on corporate governance. Based on the findings; this paper concludes that forensic auditing has improved management accountability, strengthened external auditor’s independence and assisting audit committee members in carrying out their oversight function by providing them assurance on internal audit report have impacted positively to corporate governance, thereby reducing tax related fraud and malfeasance. Therefore the study recommends that; the service of forensic auditors should be employed in Nigerian organisations.

Keywords: Forensic Audit, External Auditor, Tax Evasion, Tax Avoidance, Fraud, Malfeasance, Corporate Governance

Suggested Citation

Omodero, Cordelia and Enyioko, Newman, The Relevance of Forensic Audit and Investigation in Resolving Tax Related Fraud and Malfeasance (August 6, 2015). Available at SSRN: https://ssrn.com/abstract=2640502 or http://dx.doi.org/10.2139/ssrn.2640502

Cordelia Omodero

Medonice Consulting and Research Institute ( email )

2 Oromerueximgbu Street
Total Village, Aba Road
Port Harcourt, South-South 234
Nigeria

Newman Enyioko (Contact Author)

Medonice Consulting and Research Institute ( email )

2 Oromerueximgbu Street
Total Village, Aba Road
Port Harcourt, South-South 234
Nigeria

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
521
Abstract Views
2,527
Rank
98,845
PlumX Metrics