The Effect of Forensic Accounting on Corporate Crime Mitigation among Listed Firms in the Nairobi Securities Exchange
Abstract
Increased globalization has led to rapid changes in the socio-economic structures, modes of communication and technology. Due to this, there has been a transnational growth of transactions and diversification of economic activities. These developments and changes have therefore led to enormous opportunities for economic and financial crimes, which have gained a global concern. Such events have necessitated the need for forensic interventions hence the reason why forensic auditing and accounting are gaining fast-paced precedence. This harsh global environment has also necessitated for a great impact on the controls and procedures to be established by forensic accountants and auditors in the conduct of the examination to detect, prevent and respond to such crimes with fraud as a crime being at the forefront. Various measures have been put in place to prevent and detect corporate crime in many organizations, but employees and external fraudsters have not been deterred by this from taking part in fraud in organizations. The objective of the study was to establish the effect of forensic accounting on corporate crime mitigation among listed firms in the Nairobi Securities Exchange. The study adopted descriptive research design and used primary data from structured questionnaire. The target respondents were the chief financial officers and audit managers for all 61 firms listed in the NSE. The study concluded that robust internal controls, management override controls and segregation of duties and responsibilities have a based and significant effect on corporate crime mitigation.
Keywords: Forensic Accounting, Corporate Crime & Nairobi Securities Exchange
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