Forensic accounting as a way of preventing fraud in organizations, a case study of embu county

Abstract

Fraud has become a major issue that many organizations are struggling to control. Fraud mostly involves the stakeholders of the organization; employees, suppliers, clients. Kenya has reported several cases of fraudulent acts. The study intended to find how forensic accounting can be used as a tool of preventing fraud. The study was conducted in Embu, Kenya. The research design used was descriptive and quantitative and qualitative data used for analysis. The data was collected using a questionnaire. This enabled collection of data that clearly demonstrated how fraud can be prevented by use of forensic accounting. The study established that several organizations in Embu county adopted components of forensic accounting such as; robust internal controls, management override of controls, proactive fraud audit, compliance with policies, segregation of duties, dispute resolution and litigation support to detect and prevent fraud.