MODERATING EFFECT OF AUDITOR EXPERTISE ON THE RELATIONSHIP

BETWEEN FORENSIC ACCOUNTING SKILLS AND FINANCIAL FRAUD

PREVENTION OF SELECTED TERTIARY INSTITUTIONS IN KATSINA STATE,
NIGERIA

MUHYUDDEEN ABBAS MASHI

ABS/23/DBA/AFI-1001

A THESIS SUBMITTED TO THE DEPARTMENT OF BUSINESS ADMINISTRATION

ANAN UNIVERSITY BUSINESS SCHOOL, ABUJA, IN PARTIAL FULFILMENT OF
THE REQUIREMENTS FOR THE AWARD OF DEGREE OF DOCTOR OF BUSINESS
ADMINISTRATION (DBA) IN …AUDITING AND FORENSIC INVESTIGATION

AUGUST, 2025

CHAPTER ONE

1
 INTRODUCTION
1.1 Background 1to the Study
Financial integrity within tertiary institutions is critical for fostering trust, ensuring sustainable
operation. However, many tertiary institutions especially in developing countries like , Nigeria,
grapple with the persistent challenges of financial fraud(Amidu&Abidin,2016).Frauds ranging
from misappropriation of funds, manipulation of financial statement, to procument irregularities
threaten the financial stability and reputation of these entities(Adegbite&Ogungbenro,2017).

Globally, higher education institutions oversee large sums dedicated to research, staffing,
infrastructure, and support for students. However, in spite of their essential contributions to
national development, these institutions are becoming increasingly vulnerable to issues like
financial mismanagement, embezzlement, and fraud. In developed countries such as the United
States and the United Kingdom, instances of fraud within universities—ranging from the misuse
of grants to the existence of fictitious employees—have led to the establishment of stricter
financial oversight measures and the incorporation of forensic auditing systems (Smith, 2015;
OECD, 2019).

In Africa, the issue of financial fraud in higher education institutions has also received
significant scrutiny. Research conducted in nations like Kenya, South Africa, and Ghana has
exposed fundamental shortcomings such as poor financial governance, lack of transparency, and
inadequate adherence to auditing standards, which pave the way for corrupt practices (Mutua,
2018; Ofori-Mensah&Boateng, 2020). Many African universities, which rely heavily on limited
public funding and external donations, encounter difficulties in establishing robust fraud
prevention initiatives due to limitations in human resources, political interference, and
underdeveloped internal auditing capabilities.

In Nigeria, agencies such Economic and Financial Crimes Commission (EFCC) and the
Independent Corrupt Practices Commission (ICPC) have highlighted continuing issues such as
misappropriation of funds, bogus contracts, unauthorized pay, and procurement fraud across
universities, polytechnics, and colleges of education (ICPC, 2021). These fraudulent behaviors
undermine the integrity of institutions, divert resources from educational advancement, and
diminish public confidence (Adebisi&Gbegi, 2015). Despite governmental efforts like the
establishment of the Treasury Single Account (TSA), Government Integrated Financial

2
Management Information system (GIFMIS) and the Integrated Payroll and Personnel
Information System (IPPIS), fraud continues to be prevalent, often due to collusion, inadequate
internal controls, and a shortage of trained forensic experts in audit departments.

This alarming trend highlights the importance of utilizing forensic accounting skills—an area of
accounting that integrates investigative methods, legal knowledge, and sophisticated data
analysis to uncover and avert financial crimes (Alleyne, Gibson &Muogbo, 2020). Forensic
accounting has proven to be effective in revealing hidden transactions, tracking misappropriated
assets, and assisting in legal action against fraudulent practices. Although forensic skills are
becoming increasingly significant in Nigeria’s public sector, their application within educational
institutions remains largely unexamined, especially concerning fraud prevention. Despite the
increasing adoption of forensic accounting,whichis an area of accounting that integrates
investigative methods, legal knowledge, and sophisticated data analysis to uncover and avert
financial crimes (Alleyne,Gibson& Muogbo,2020) the effectiveness of these skills in preventing
fraud hinges not only on possessing such skills but also on the ability of auditors to apply them
efficiently—an attribute largely inclined to their level of expertise (Alleyne et al., 2020). Auditor
expertise—defined broadly as the professional qualification, experience, and continuing training
—has been identified as a potential moderator that can enhance the relationship between forensic
skills and fraud prevention (Simphon et al., 2018).Given the importance of this relationship,
particularly in the context of Nigerian tertiary institutions, it becomes imperative to explore how
auditor expertise influences the effectiveness of forensic skills in combating financial fraud.
Literature suggests that higher levels of auditor expertise improve the quality of forensic
investigations and consequently enhance fraud prevention efforts (Adebisi&Fasola, 2022)

It is suggested that auditor expertise may influence the relationship between forensic accounting
skills and outcomes related to fraud prevention. In other words, auditors possessing higher
expertise may utilize forensic techniques more successfully, resulting in improved performance
in fraud prevention when compared to their less experienced colleagues.

In the light of this context, this study aims to examine how Auditor`s expertise moderates the
interplay between forensic accounting skills and the prevention of financial fraud in selected
higher education institutions in Katsina State, Nigeria. Through this exploration, the research
seeks to provide empirical insights that could enhance internal auditing functions and guide

3
policy approach for fraud reduction in Nigeria’s higher education sector, which remains an
unresolved question: To what extent does auditor expertise influence the relationship between
forensic accounting skills and financial fraud prevention in tertiary institutions in Katsina State?

Failure to answer this question risks the continued implementation of fragmented or ineffective
anti-fraud mechanisms. It also limits the capacity of institutional leadership and policy makers to
formulate evidence-based strategies that strengthen financial governance in the education sector.

1.2 Statement of the problem

While Nigerian tertiary institutions gradually recognize the importance of forensic accounting in
safeguarding their assets, financial scandals and irregularities persist (EFCC, 2019). It was
established that possessing forensic skills alone does not guarantee successful fraud detection;
reasonably, the application and effectiveness of these skills are largely dependent upon the
auditor's expertise (Owolabi&Oladipupo, 2021).

Furthermore, the Nigerian auditing environment faces challenges such as inadequate training and
limited specialized expertise among auditors charged with financial oversight in tertiary
institutions (Nwagwu&Adone, 2020). Without sufficient expertise, forensic skills may be
underutilized or misused, thereby undermining their potential in fraud prevention
(Adegbie&Ogungbenro, 2017).Forensic accounting has been globally recognized as a potent tool
in the detection, investigation, and prevention of fraud (Efiong, 2012; Modugu&Anyaduba,
2013). However, in Nigeria’s public sector — particularly in tertiary institutions — the
application of forensic accounting remains limited, underdeveloped, and sometimes poorly
integrated into existing audit functions. More importantly, there appears to be a critical gap
between possessing forensic accounting skills and achieving measurable fraud prevention
outcomes. This suggests that the mere availability of forensic accounting tools or training may
not be sufficient to curb financial fraud unless such skills are effectively applied by competent
auditors.

Auditor expertise — defined by factors such as professional training, experience, ethical

conduct, and regulatory knowledge — is likely to influence how well forensic accounting
techniques are implemented and whether they translate into actual fraud mitigation
(Abdulrahman, 2019). Auditors lacking the requisite expertise may fail to recognize fraud red

4
flags, apply forensic tools appropriately, or respond decisively to irregularities, thereby
weakening the potential of forensic accounting to prevent fraud.

Despite the theoretical relevance of auditor expertise as a moderating variable, empirical

evidence on its interaction with forensic accounting skills in the context offinancial
fraudprevention is sparse, particularly within Nigerian tertiary institutionsa. Existing studies have
often examined forensic accounting and auditor competence in isolation, without assessing the
conditional influence of one on the other (Kasum, 2009; Ofori, Antwi&Dwamena, 2016).
Consequently, This study is therefore designed to bridge the possible gap in the literature and
provide a work through for stakeholders in the field on how best to tackle financial fraud in our
tertiary institutions.

1.3 Research Questions

The following research questions will guide this study:

I. What is the effect of forensic investigation on financial fraud prevention of selected tertiary

institutions in Katsina state, Nigeria?

II. To what extent does forensic auditing affect financial fraud prevention of selected tertiary

institutions in Katsina state, Nigeria?

[Link] is the effect of forensic litigation support on financial fraud prevention of selected

tertiary institutions in Katsina state, Nigeria.

IV .To what extent does forensic consultancy experts affect financial fraud prevention of selected

tertiary institutions in Katsina state, Nigeria?

[Link] is the effect of forensic accountant on financial fraud prevention of selected tertiary

institutions in Katsina state, Nigeria?

5
VI. What extent does auditor expertise affects financial fraud prevention of selected tertiary

institutions in Katsina state, Nigeria?

VII. What is the moderating effect of auditor expertise in the relationship between forensic

accounting skills and financial fraud prevention of selected tertiary institutions in Katsina state,

Nigeria?

1.4 Objectives of the Study

The main objective of this study is to determine the Moderating effect of auditor expertise on the

relationship between forensic accounting skills and financial fraud prevention of selected

Tertiary institutions in katsina state. Nigeria.

The specific objectives are to:

1. Evaluate the effect of forensic investigation on accounting skill in selected tertiary institutions

in Katsina..

II. Ascertain the effect of forensic auditing on financial fraud prevention of selected Tertiary

institutions in Katsinastate, Nigeria.

III. Explore the effect of forensic litigation support on financial fraud prevention of selected

Tertiary institutions in Katsina state, Nigeria

[Link] determine the effect of forensic consultant on financial fraud prevention of selected

tertiary institutions in katsina state, Nigeria.

V To determine the effect of forensic accountant on financial fraud prevention of selected

Tertiary institutions in Katsina state, Nigeria.

6
V Investigate the effect of auditor expertise on financial fraud prevention of selected Tertiary

institutions in Katsina state, Nigeria.

VII. Evaluate the Moderating effect of auditor expertise on the relationship between forensic

accounting skills and financial fraud prevention of selected Tertiary institutions in Katsina state,

Nigeria.

1.5 Statement of Hypotheses

The following null hypotheses were formulated and tested for the study.

Ho1: Forensic investigation has no significant effect on financial fraud prevention of Selected

Tertiary Institutions in Katsina State, Nigeria.

Ho2: Forensic auditing has no significant effect on financial fraud prevention of Selected

Tertiary Institutions in Katsina State, Nigeria.

Ho3: Forensic litigation support has on significant effect on financial fraud prevention of

Selected Tertiary Institutions in Katsina State, Nigeria.

Ho4: Forensic consultancy expert has no significant effect on financial fraud prevention of

Selected Tertiary Institutions in Katsina State, Nigeria.

Ho5: Forensic accountant has no significant effect on financial fraud prevention of Selected

Tertiary Institutions in Katsina State, Nigeria.

Ho6: Auditor expertise has no significant effect on financial fraud prevention of Selected

Tertiary Institutions in Katsina State, Nigeria.

7
Ho7: Auditor expertise moderator has no significant effect on the relationship between forensic
accounting skills and financial fraud prevention of Selected Tertiary Institutions in Katsina State,
Nigeria

1.6 Significance of the Study

This study contributes to the growing literature on forensic accounting and auditing in Nigeria,
with a particular focus on the higher education sector. It is significant for the following
stakeholders:

 Policy makers – to guide reforms on auditor training and forensic practice standards.
 Tertiary institution administrators – to implement stronger internal control systems
and enhance accountability.
 Auditors and forensic accountants – to highlight the importance of continuous
professional development and specialized training.
 Researchers – to provide an empirical basis for further investigation into the moderating
role of auditor expertise.

Theoretically, the study extends existing models of fraud prevention by integrating auditor
expertise as a moderating variable. Practically, it offers evidence-based recommendations for
improving internal audit functions and reducing the risk of financial misconduct in Nigerian
tertiary institutions.

1.7 Scope of the Study

This research concentrates on selected public tertiary institutions in Katsina State. The focus is
on assessing the forensic accounting skills, auditor expertise, and fraud prevention mechanisms
within these institutions. The study primarily employs a quantitative research approach, utilizing

8
structured questionnaires and secondary [Link] work is expected to cover period from 2019-
2024
1.8 Definition of operational terms
The following definitions of the study include;
Forensic accounting skills The specialized knowledge and ability to apply accounting, auditing
and investigative techniques to prevent and detect fraud.

Financial fraud prevention;

Strategies and systems used to avoid illegal financial practices such as embezzlement, forgery, or
misreporting.
Auditor Expertise;
The level of professional knowledge, experience, and competence of an auditor in performing
forensic tasks

CHAPTER TWO

LITERATURE REVIEW

2.1 Conceptual Framework

2.1.1 Dependent Variable (DV): Financial Fraud Prevention

Financial fraud prevention refers to practical measures and internal control mechanisms
instituted to reduce the likelihood of fraudulent practices. The Association of Certified Fraud
Examiners (ACFE, 2020) defines fraud prevention as the process of establishing structures and
controls that minimize opportunities for fraud before it occurs. Unlike fraud detection, which
identifies irregularities after occurrence, fraud prevention emphasizes anticipation, deterrence,
and blocking of potential fraud schemes (Omar &Bakar, 2012)..It is a processs where by strong
internal control measures were imposed to checkmate any possible financial and irregularities.

In tertiary institutions, fraud prevention is critical given the large resources managed,
government subventions, and donor funds. Such institutions are expected to uphold transparency
and accountability in resource utilization (Okoye&Gbegi, 2013). Preventive strategies include
internal audits, forensic audits, whistle-blowing mechanisms, and compliance with statutory
regulations (Rezaee& Riley, 2010). Over time, conceptualizations have evolved from traditional
internal control systems in the 1980s–1990s to integrative approaches in the 2000s and 2020s
that emphasize forensic accounting, ICT-based tools, and governance reforms.

9
2.1.2 Independent Variable (IDV): Forensic Accounting Skills

Forensic accounting is a specialized field that combines accounting,auditing,and investigative

skills to prevent and detect financial fraud. It goes beyond the traditional audit function by
focusing on gathering and analyzing financial evidence for legal proceedings(Adebayo and
Bello,2018).

Forensic accounting integrates accounting, auditing, and investigative competencies for litigation
support and fraud-related engagements (Crumbley, 2009). Forensic accounting skills include
investigative skills, analytical reasoning, litigation support, digital forensics, and communication
(Bhasin, 2013). These skills are essential in detecting, preventing, and mitigating fraudulent
practices. It also involves legal knowledge which is the understanding of the legal framework
related to financial crimes, ensuring that evidence gathered is admissible in court and also IT and
data analysis skills- proficiency in using specialized software to analyze large datasets and
identify anomalies, patterns, or irregularities that may indicate fraud.

Earlier conceptualizations emphasized fraud detection alone (Hopwood, Leiner, & Young,
2012). However, recent literature views forensic accounting as both preventive and corrective,
contributing to institutional governance and fraud risk management (Enofe, Omagbon,
&Ehigiator, 2015). Within Nigerian tertiary institutions, forensic accounting skills are
increasingly recognized as preventive tools in safeguarding scarce public resources.

2.1.3 Framework of DV and IDV

This study conceptualizes the relationship between forensic accounting skills (independent
variable) and financial fraud prevention (dependent variable) as positive and direct. However, the
strength of this relationship depends on the level of auditor expertise (moderating variable).
Auditor expertise—defined as the professional knowledge, experience, and certification of
auditors—enhances the effectiveness of forensic accounting practices.

Conceptual Framework Diagram

Forensic Accounting Skills (IDV) ───────────► Financial Fraud Prevention (DV)

│
│ Moderated by
▼
Auditor Expertise (MV)

Where auditor expertise is high, forensic accounting skills translate more effectively into fraud
prevention. Where expertise is low, preventive outcomes weaken. This study therefore
investigates how auditor expertise moderates the forensic accounting–fraud prevention nexus in
selected tertiary institutions in Katsina State.

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 2.2 Empirical Studies Review

2.2.1 Investigative Skills and Financial Fraud Prevention

Investigative skills are fundamental to forensic accounting practice. Ezejiofor, Nwakoby, and
Okoye (2016) found that investigative skills significantly improved fraud prevention in Nigerian
public institutions. Similarly, Akhidime and Ugbale-Ekatah (2014) reported that investigative
competencies enhance internal fraud controls. However, Onodi, Okafor, and Onyali (2015)
contended that while investigative skills aid fraud detection, their preventive capacity depends
heavily on auditor expertise and organizational support. This divergence highlights the need for a
study that explicitly tests the moderating role of auditor expertise.

2.2.2 Analytical and Reasoning Skills and Financial Fraud Prevention

Analytical reasoning enables forensic accountants to interpret complex financial data and
uncover irregular patterns. Efiong (2012) demonstrated that analytical reasoning strengthened
fraud prevention in Nigerian universities. Kasum (2015) confirmed similar findings in the
banking sector. Nevertheless, Ibrahim, Abubakar, and Ahmad (2017) observed that where
auditors lacked expertise, analytical skills were underutilized, limiting preventive outcomes. This
shows that auditor expertise is an overlooked factor in existing studies.

2.2.3 Litigation Support Skills and Financial Fraud Prevention

Litigation support enhances fraud prevention by providing credible evidence and expert
testimony in fraud-related cases. Okoye and Gbegi (2013) found that litigation support skills
improved fraud resolution in Nigerian tertiary institutions. However, Enofe et al. (2015) argued
that weak judicial systems and inadequate auditor expertise limit the preventive impact of
litigation support. This mixed evidence underscores the need for contextual research in Katsina
State institutions.

2.2.4 Digital Forensics Skills and Financial Fraud Prevention

As financial transactions increasingly rely on technology, digital forensic skills have become
vital. Bhasin (2016) established that digital forensic skills curb cyber-enabled fraud. Oyedokun
(2015) also found that ICT-based forensic methods improved fraud prevention in Nigeria’s
financial institutions. However, technological tools without auditor expertise in interpreting
electronic evidence remain inadequate, a gap this study addresses.

Trends and Gaps

 Trends: Most studies report a positive effect of forensic accounting skills on fraud prevention.
Analytical, investigative, litigation, and digital forensic skills are the most studied.
 Gaps:
1. Few studies focus on tertiary institutions compared to banking or government agencies.
2. Limited research emphasizes fraud prevention rather than detection.
3. The moderating role of auditor expertise remains largely underexplored.

11
4. Methodological weaknesses (e.g., reliance on perception surveys) persist.
 Contribution of Current Study: This research addresses these gaps by focusing on tertiary
institutions in Katsina State, emphasizing fraud prevention, and testing auditor expertise as
a moderating factor.

2.3 Theoretical Review

2.3.1 Fraud Triangle Theory

Cressey (1953) argued that fraud occurs due to pressure, opportunity, and rationalization. While
critics argue it oversimplifies fraud (Dorminey et al., 2012), the theory is relevant because
forensic accounting skills and auditor expertise reduce opportunities for fraud.

2.3.2 Competence-Based Theory

Prahalad and Hamel (1990) highlight organizational competencies as sources of effectiveness.

Forensic accounting skills and auditor expertise are competencies critical for fraud prevention.
Teece (2014) notes the need for adapting competencies to changing contexts such as cyber-fraud,
reinforcing the relevance of this theory.

2.3.3 Agency Theory

Jensen and Meckling (1976) explain fraud as arising from conflicts between principals and
agents. Forensic accounting reduces agency costs, while auditor expertise strengthens
monitoring. Critics (Daily et al., 2003) argue it overemphasizes financial motives, but its
relevance lies in explaining institutional fraud risks in Nigerian tertiary institutions.

2.3.4 Institutional Theory

Meyer and Rowan (1977) emphasize organizational behavior shaped by institutional norms and
rules. Forensic accounting skills emerge as institutional responses, and auditor expertise ensures
genuine compliance. Critics (DiMaggio & Powell, 1983) warn of ceremonial compliance,
highlighting why auditor expertise is crucial in translating norms into practice.

2.3.5 GONE Theory of Fraud

Bologna (1993) identifies Greed, Opportunity, Need, and Exposure as fraud drivers. Forensic
accounting reduces opportunity and increases exposure, while auditor expertise magnifies
exposure risk. Critics (Albrecht et al., 2016) note its descriptive nature, but it remains useful in
contexts like Nigeria where financial need and greed are prevalent.

Theoretical Synthesis

 Fraud Triangle and GONE Theories highlight situational and psychological drivers of fraud.

12
 Agency Theory explains principal-agent conflicts in resource management.
 Institutional Theory situates fraud prevention within regulatory pressures.
 Competence-Based Theory highlights dynamic skills and expertise as fraud prevention
[Link], these theories provide a multi-level framework for understanding how
forensic accounting skills, moderated by auditor expertise, enhance fraud prevention in Nigerian
tertiary institutions.

CHAPTER THREE

RESEARCH METHODOLOGY
3.1 Research Design

The research design provides a blueprint for collecting, measuring, and analyzing data (Creswell
& Creswell, 2018). For this study, a quantitative cross-sectional survey design was adopted. This
design was chosen because it allows the collection of data at a single point in time from a large
sample, providing a comprehensive snapshot of the phenomena under investigation. The survey
approach enhances generalizability, reduces researcher bias, and is particularly appropriate for
hypothesis testing (Saunders et al., 2019).
Given that the research seeks to test a moderating effect between variables, the quantitative
approach is most suitable, as it facilitates the application of statistical tools such as Structural
Equation Modeling (SEM) to examine relationships among constructs (Hair et al., 2022).
3.2 Research Philosophy
Research philosophy refers to the underlying set of beliefs that guide how a researcher views
reality (ontology), how knowledge is acquired (epistemology), and the role of values in research
(axiology). The present study adopts the positivist philosophy, which assumes that reality is
objective, measurable, and independent of the researcher. Under positivism, structured
instruments such as questionnaires and advanced statistical techniques are employed to test
hypotheses and establish cause–effect relationships (Creswell & Creswell, 2018).
3.2.1 Ontology
Ontology concerns the researcher’s view of reality. This study adopts an objectivist ontological
stance, which assumes that concepts such as forensic accounting skills, auditor expertise, and
financial fraud prevention exist as independent realities outside the researcher’s perception. For
example, financial fraud prevention can be observed and quantified through control mechanisms,

13
forensic techniques, and audit outcomes. This view aligns with positivism, as it treats social
phenomena as measurable and independent of personal bias (Saunders et al., 2019).
3.2.2 Epistemology

Epistemology addresses the question of what constitutes valid knowledge and how it can be
acquired. In this study, the epistemological stance is empiricism, which holds that knowledge is
best obtained through observable evidence and measurement. Data will be collected through
structured questionnaires administered to professionals in tertiary institutions, and the validity of
findings will depend on empirical verification. This approach is suitable for examining
relationships between variables and testing moderation effects in a systematic and replicable
manner (Sekaran & Bougie, 2019).
3.2.3 Axiology
Axiology deals with the role of values in research. The axiological stance of this study is value-
neutrality, which means that the researcher maintains independence and ensures objectivity
throughout the research process. To achieve this, ethical guidelines were strictly observed —
including ensuring informed consent, confidentiality of responses, and avoidance of bias in the
analysis and interpretation of findings (Yin, 2018). The researcher does not impose personal
preferences but allows the evidence to speak through statistical analysis.
3.3 Population, Sample and Sampling Techniques.
3.3.1 Population of the Study
The population comprises all personnel directly involved in financial management, auditing, and
fraud control in the following selected tertiary institutions within Katsina State;
[Link] Musa Yaradua University Katsina.
2. Federal University Dutsamma
3 .Federal College of Education Katsina
4. Hassan Usman Katsina Polytechnic
5. Isa Kaita College of Education Dutsamma
This includes internal auditors, accountants, bursary staff, procurement officers, and members of
internal control units. These groups were chosen because they are most relevant in implementing
forensic accounting skills, applying auditing expertise, and enforcing fraud prevention measures.
3.3.2 Sample Size
Determining the appropriate sample size is critical for ensuring representativeness and statistical
power. This study employed Krejcie and Morgan’s (1970) sample size determination table as a
guideline. The formula ensures that the selected sample is large enough to produce reliable

14
results while accounting for potential non-response. Based on the estimated population size of
professionals in the institutions, a sample of 200 respondents was targeted. To strengthen
robustness, the researcher adjusted the sample size upward to cater for possible attrition and
incomplete responses.
3.3.3 Sampling Technique
The study employed a two-stage sampling approach:
1. Purposive Sampling – This was used to select the tertiary institutions included in the study,
ensuring that only those with established internal audit units and financial control systems were
chosen.
2. Stratified Random Sampling – Within each selected institution, respondents were stratified
according to professional categories (auditors, accountants, bursary staff, and internal control
officers). From each stratum, participants were selected randomly. This technique was chosen
because it improves representativeness and ensures that all sub-groups of the population are
proportionally represented (Saunders et al., 2019).
This method is appropriate for studies that involve heterogeneous populations, as it minimizes
sampling bias and enhances the generalizability of findings.

3.4 Methods of Data Collection

The primary data for this study were collected using a structured questionnaire designed
specifically to measure the constructs under investigation: forensic accounting skills, auditor
expertise, and financial fraud prevention. Questionnaires were selected because they are cost-
effective, standardized, and suitable for collecting large-scale data in quantitative research
(Saunders et al., 2019).
The questionnaire was divided into five sections:
Section A: Demographic information (e.g., age, gender, qualification, years of experience, and
job designation).
Section B: Forensic Accounting Skills – adapted from prior validated instruments that assess
investigative, analytical, and litigation support competencies.
Section C: Auditor Expertise – measured through indicators such as professional qualification,
years of auditing experience, continuous professional training, and specialization.
Section D: Financial Fraud Prevention – measured using items relating to fraud risk
management, internal control effectiveness, compliance with financial regulations, and fraud
detection mechanisms.
Section E: Interaction variables – designed to capture the moderation effect of auditor expertise
on the relationship between forensic accounting skills and fraud prevention.

15
The questionnaire employed a 5-point Likert scale (ranging from 1 = Strongly Disagree to 5 =
Strongly Agree). This scaling is consistent with best practices in quantitative research because it
facilitates measurement of attitudes and perceptions while allowing for robust statistical analysis
(Sekaran & Bougie, 2019).

---

3.4.1 Reliability
Reliability refers to the consistency and stability of the instrument in measuring the constructs.
To establish reliability, a pilot study was conducted using 30 respondents from one tertiary
institution not included in the final sample. Data from the pilot study were analyzed using
Cronbach’s Alpha coefficient, with a threshold of 0.70 as recommended by Nnually
(1978).Additionally, Composite Reliability (CR) values were examined during Confirmatory
Factor Analysis (CFA), with acceptable thresholds above 0.70 (Hair et al., 2022). These
reliability checks ensured that the instrument consistently measured the intended constructs.
3.4.2 Validity
Validity ensures that the research instrument measures what it is intended to measure. Three
forms of validity were established:
1. Content Validity: Experts in forensic accounting, auditing, and academic research reviewed
the questionnaire to ensure that the items adequately captured the research constructs.
2. Construct Validity: Using Confirmatory Factor Analysis (CFA), the factor loadings of items
on their respective constructs were examined. Items with loadings below 0.50 were dropped to
strengthen construct validity (Awang, 2015).
3. Convergent and Discriminant Validity: Convergent validity was established by ensuring that
the Average Variance Extracted (AVE) exceeded 0.50, while discriminant validity was checked
using the Fornell-Larcker criterion, ensuring that each construct shared more variance with its
own items than with other constructs (Fornell & Larcker, 1981).

3.5 Techniques for Data Analysis and Model Specification

Data collected were coded, entered, and analyzed using SmartPLS (Partial Least Squares
Structural Equation Modeling) and SPSS. The use of PLS-SEM is justified because it allows for

16
simultaneous testing of measurement and structural models, handles complex models with
moderating effects, and is robust even with smaller sample sizes (Hair et al., 2022).
The analysis followed a two-step approach:
1. Measurement Model (Outer Model):

2. Examined reliability using Cronbach’s Alpha and Composite Reliability.

Assessed validity using CFA, AVE, and discriminant validity tests.

2. Structural Model (Inner Model):

Tested hypotheses on the direct effects of forensic accounting skills on financial fraud
prevention.
Assessed the moderating effect of auditor expertise by introducing interaction terms.
Examined path coefficients, effect sizes (), predictive relevance (), and coefficient of
determination () to determine model strength.
Additionally, descriptive statistics (mean, standard deviation, frequencies, percentages) were
used to summarize demographic data. Diagnostic tests such as multicollinearity (Variance
Inflation Factor – VIF), normality checks, and model fit indices were conducted to ensure
robustness of results.
The general regression equation for the study is specified as:
FFP = \beta_0 + \beta_1 FAS + \beta_2 AE + \beta_3 (FAS \times AE) + \epsilon
Where:
= Financial Fraud Prevention
= Forensic Accounting Skills
= Auditor Expertise (moderator)
= Interaction effect (moderation)
= Error term

17
---

3.6 Justification of Methods

The methodological choices for this study are justified as follows:

1. Survey Research Design: This design is widely accepted in social and management sciences
because it permits the collection of large-scale standardized data for hypothesis testing (Creswell
& Creswell, 2018).
2. Positivist Philosophy: By emphasizing objectivity, measurement, and statistical testing,
positivism aligns with the study’s quantitative approach and ensures scientific rigor (Saunders et
al., 2019).
3. Sampling Approach: The combination of purposive and stratified random sampling improves
representativeness, ensures that all relevant categories of respondents are included, and reduces
selection bias.
4. Structured Questionnaire: This method is efficient, cost-effective, and facilitates the
measurement of latent constructs such as forensic accounting skills and auditor expertise
(Sekaran & Bougie, 2019).
5. Reliability and Validity Checks: Use of Cronbach’s Alpha, CFA, and AVE enhances
credibility and ensures that constructs are measured with accuracy (Nunnally, 1978; Fornell &
Larcker, 1981).

6. SEM with PLS: SEM is one of the most powerful statistical techniques for testing complex
relationships involving moderators and mediators, making it highly appropriate for this study
(Hair et al., 2022).

Questionnaire
Title: Moderating Effect of Auditor Expertise on the Relationship Between Forensic Accounting
Skills and Financial Fraud Prevention of Selected Tertiary Institutions in Katsina State, Nigeria
Instructions:

18
This questionnaire is designed for academic purposes only. Your responses will be treated with
strict confidentiality. Please indicate your level of agreement with each statement using the scale
below:

1 = Strongly Disagree | 2 = Disagree | 3 = Neutral | 4 = Agree | 5 = Strongly Agree

---

Section A: Demographic Information

1. Gender: ☐ Male ☐ Female

2. Age: ☐ 21–30 ☐ 31–40 ☐ 41–50 ☐ 51+

3. Educational Qualification: ☐ [Link]./HND ☐ [Link]./MBA ☐ PhD ☐ Others __________

4. Current Job Designation: ☐ Internal Auditor ☐ Accountant ☐ Bursary Staff ☐ Internal

Control Officer ☐ Others __________

5. Years of Professional Experience: ☐ 1–5 ☐ 6–10 ☐ 11–15 ☐ 16+

19
---

Section B: Forensic Accounting Skills

Subsection B1 – Forensic Investigation (RQ1 / Ho1)

Statement 1 2 3 4 5

B1.1 I can identify and trace fraudulent financial transactions. ☐ ☐ ☐ ☐

☐
B1.2 I can investigate suspected cases of misappropriation of funds. ☐ ☐ ☐
☐ ☐
B1.3 I can detect unusual patterns in financial statements that may indicate fraud. ☐ ☐
☐ ☐ ☐

Subsection B2 – Forensic Auditing (RQ2 / Ho2)

Statement 1 2 3 4 5

B2.1 I apply auditing techniques specifically designed to uncover fraudulent activities. ☐

☐ ☐ ☐ ☐
B2.2 I am skilled in using forensic auditing software and digital tools. ☐ ☐ ☐
☐ ☐
B2.3 Regular forensic auditing significantly reduces the likelihood of fraud. ☐ ☐
☐ ☐ ☐

Subsection B3 – Forensic Litigation Support (RQ3 / Ho3)

20
Statement 1 2 3 4 5

B3.1 I can prepare forensic reports that are admissible in court. ☐ ☐ ☐ ☐

☐
B3.2 I provide expert evidence in litigation relating to financial fraud. ☐ ☐ ☐
☐ ☐
B3.3 I am skilled in interpreting complex financial records for legal purposes. ☐ ☐
☐ ☐ ☐

Subsection B4 – Forensic Consultancy Expertise (RQ4 / Ho4)

Statement 1 2 3 4 5

B4.1 I provide consultancy services on fraud risk assessment. ☐ ☐ ☐ ☐

☐
B4.2 I advise institutions on how to strengthen their internal controls. ☐ ☐ ☐
☐ ☐
B4.3 My consultancy inputs have improved fraud prevention in my institution. ☐ ☐
☐ ☐ ☐

Subsection B5 – Forensic Accountant Role (RQ5 / Ho5)

Statement 1 2 3 4 5

B5.1 I regularly engage in fraud detection and prevention as part of my role. ☐ ☐

☐ ☐ ☐
B5.2 I reconstruct incomplete or manipulated financial records. ☐ ☐ ☐ ☐
☐

21
B5.3 I combine investigative, auditing, and reporting skills in my forensic work. ☐ ☐
☐ ☐ ☐

---

Section C: Auditor Expertise (RQ6 / Ho6)

Statement 1 2 3 4 5

C1. I have relevant professional qualifications in auditing. ☐ ☐ ☐ ☐ ☐

C2. My years of auditing experience enhance my ability to detect fraud. ☐ ☐ ☐
☐ ☐
C3. I attend continuous professional development (CPD) programs in auditing/forensics. ☐
☐ ☐ ☐ ☐
C4. I am highly knowledgeable about financial regulations and compliance requirements. ☐
☐ ☐ ☐ ☐
C5. I specialize in fraud detection and forensic assignments. ☐ ☐ ☐ ☐
☐
C6. I evaluate and strengthen internal controls effectively. ☐ ☐ ☐ ☐ ☐

---

Section D: Financial Fraud Prevention (Dependent Variable)

Statement 1 2 3 4 5

22
D1. Internal controls in my institution are effective in preventing fraud. ☐ ☐ ☐
☐ ☐
D2. Fraud risk assessments are regularly conducted. ☐ ☐ ☐ ☐ ☐
D3. Fraudulent activities are detected and reported promptly. ☐ ☐ ☐ ☐
☐
D4. Compliance with financial regulations reduces fraudulent activities. ☐ ☐ ☐
☐ ☐
D5. Fraud prevention mechanisms are frequently reviewed and updated. ☐ ☐ ☐
☐ ☐
D6. Financial fraud has reduced significantly in my institution over the years. ☐ ☐
☐ ☐ ☐

---

Section E: Moderating Effect of Auditor Expertise (RQ7 / Ho7)

Statement 1 2 3 4 5

E1. The effectiveness of forensic accounting skills depends on the level of auditor expertise.
☐ ☐ ☐ ☐ ☐
E2. Fraud prevention outcomes improve when forensic skills are applied by highly experienced
auditors. ☐ ☐ ☐ ☐ ☐
E3. Auditor expertise strengthens the impact of forensic accounting practices on fraud detection.
☐ ☐ ☐ ☐ ☐
E4. Without auditor expertise, forensic accounting skills alone may not prevent fraud effectively.
☐ ☐ ☐ ☐ ☐

23
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