Effect Of Forensic Accounting Practices On Financial Accountability In Machakos County Government, Kenya

Abstract

This study was undertaken to assess the effect of forensic accounting practices on financial accountability in Machakos County Government, Kenya. The study was guided by fraud investigation, fraud prevention and fraud examination as the independent variables while financial accountability was the dependent variable. The study benefits the county governments, the national government, and other scholars on understanding the relationship between the study variables and inform on decision and policy making. The white-collar theory, fraud triangle theory and routine activity theory guided the study in checking what past authors and academicians have discussed in relation to the study variables. The study adopted a descriptive research design and a target population of 106 employees working in finance, internal auditing and economic planning in Machakos County and the Kenya National Audit Office attached to the Machakos County government while the sample size was 84 respondents. Primary data was adopted to collect data that was analyzed using both descriptive and inferential statistics. A linear regression was used to determine the nature and strength of the relationship between the study variables. The results of the analyzed data were presented in frequency distribution tables with calculated mean and standard deviation from the mean response. The study concluded that there was a positive relationship between fraud investigation, fraud prevention and fraud examination practices and financial accountability. The study recommended that that County governments should establish forensic accounting departments and recruit competent employees. Secondly, the existing auditors at the county level and the national level should create sound policies that will prevent employees from engaging in financial fraud that could derail the count from service delivery and financial accountability. Finally, the study recommends that county governments should invest in modern technology to examine fraud in its expenditure since employees can easily evade traps when traditional methods are employees.