Combating Fraud and White Collar Crime in Nigeria through Application of International Accounting Reporting Standards

Abstract

This study examined International Accounting Reporting Standards as tool for
combating Fraud and White Collar Crimes.This study adopts the survey and
documentary research techniques. The population of this study comprises all the 24 recapitalized Nigerian banks. However, those sampled were the 16 banks listed in the stock exchange. Those targeted are members of the following professional bodies: ICAN, ANAN and CIBN. Data were obtained using questionnaire administered on staff of banks in Nigeria. Secondary data were also obtained from Banks, Nigeria Deposit Insurance Company and Factbook of the Nigerian Stock Exchange. Two null hypotheses were tested using descriptive and inferential statistics. The study reveals that both International Accounting Reporting Standards and Statement of Accounting Standards of Nigeria can be relied upon to produce Fraud Free Financial Report, however the difference between them as white collar crime (WCC) combating tool is statistically significant in favour of IARS implying that the latter is preferred. It also reveals that Nigerian banks started implementing IFRS earnestly in 2008 and fraud did not abate since then. Therefore IARS has not resolved WCC prevalent in the subsector. From extant literature Accounting Standards are tools for combating 25% of the eight elements in fraud management cycle while 75% of them are within the purview of Forensic accounting. The study recommends therefore that forensic accounting should be incorporated into final level professional exams
of the two bodies regulating accounting practice in Nigeria.