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Given the prevalence of corruption in Nigeria, there is the need to thoroughly understand forensic accounting in our national life. “Forensic” is the application of scientific methods and techniques to the investigation of crime, and provision of evidence for use in a court of law. Therefore, forensic accounting can be said to be a specialty practice area of accounting that describes engagements that result from actual or anticipated disputes or litigation. You cannot fight crime successfully without the help of forensic accountants.
In the United States of America, the term “forensic accountants” is generally used for Certified Public Accountants (CPA). For you to be a forensic accountant, you must be a member of the only chartered accounting body in the USA known as Certified Public Accountants. Just as you can’t just graduate from the medical school and claim to be a surgeon but must first undergo professional training in the area of interest, likewise you can’t just jump from being a graduate of accounting to being a forensic accountant – otherwise it will only breed mediocrity. Forensic accounting is a specialty area in accounting. All big 4 accounting firms (PricewaterhouseCoopers, Ernst & Young, Deloitte, KPMG) have departments for forensic accounting and investigations. Those who join these departments come from Chartered Institute of Accountants created by their respective countries and recognized by the International Federation of Accountants (IFAC).
Aligning my thought with that of Bozkurt (2000), in Nigeria, the main important law enforcement agencies involved directly in combating white-collar crimes are the Police Special Fraud Unit, EFCC and ICPC. I am not sure these law enforcement agencies do train their investigators in the specialized usage of forensic accounting. On the other hand, if we look at the western countries, particularly the USA, the law enforcement agencies like FBI and CIA have properly marshalled their pool of special agents with forensic accounting backgrounds, who are the backbone of their financial crimes squad. They investigate with professional acumen complex financial crimes like money laundering, cyber crimes, financial institution fraud and other economic crimes. In our own little way, Nigeria has enacted an Act of parliament setting up the Institute of Chartered Accountants of Nigeria (ICAN) which is producing highly-trained forensic accountants just as we have in Canada (Institute of Chartered Accountants) and UK (ACCA, ICAEW).
The point I am making is that if we allow mediocrity in the accounting profession, in this case forensic accounting, and make it just a means of earning money and social prominence, we will slowly destroy what ICAN was meant to do. Idealism and patriotism have now become suspect words and the fault lies somewhere in the cynical attitude non-chartered accountants now seem to encourage in the accounting profession.
So, here is raising my cup against any before the National Assembly seeking to proliferate the accounting profession in the country. May mediocrity not be enshrined in the constitution of Nigeria via Bills sponsored in the National Assembly promoting proliferation of the accounting profession in the country. Unfortunately, a look at proliferation of the accounting profession creates tasteless and voyeuristic glee with which unpatriotic Nigerians and their accomplices are feasting on the accounting profession.
The Institute of Chartered Accountants of Nigeria, established by an Act of Parliament in 1965, as expected, has forensic, audit and investigating faculty. ICAN registers, trains and issues certificates to qualified members. Forensic accountants trained by the Institute are awarded Certified Forensic Accountants of Nigeria (CFAN) certificates. It should be noted that only chartered accountants are qualified to be forensic and investigative auditors. The reason a forensic accountant must first be a chartered accountant is simply that, as earlier stated, forensic accounting is a specialized area in accounting. The forensic accounting investigation poses substantial risk. For example, a forensic accountant that lacks the rudiments of accounting and professional experience that can be obtained from the Institute of Chartered Accountants can destroy an organization and even compound the social and economic problems in a country.
Given the prevalence of corrupt practices in mostly developing economies, having forensic accountants is highly desirable, but this should not be seen as an opportunity to be fishing on Nigerians under the guise of promoting Bills to duplicate forensic accounting practice. There is no need to duplicate efforts mostly on the altar of mediocrity. Nigeria must always come first before selfish interests. The genuine professionalism of ICAN, the Association of National Accountants of Nigeria, the big 4 audit firms and the International Federation of Accountants must be sustained. Nigeria must remain great without dilution of excellence in our professional life.
Francis Kehinde Emeni (PhD)
Emeni is associate professor, Department of Accounting, University of Benin & research fellow, Institute of Chartered Accountants of Nigeria (ICAN).
