An Assessment of the Influence of Forensic Accounting on the Performance of Microfinance Institutions in Mezam

The rise in corporate crime and presence of fraudulent activities has led to the collapse of highly reputable MFIs in Cameroon. It is in this light that this current study was aimed at assessing the influence of forensic accounting on the performance of MFIs in Mezam. Two specific research questions and hypothesis were formulated to guide the study. The population of the study was made up of 490 employees of MFIs from which a sample of 220 employees was drawn using Loren’s formula and questionnaires administered. The questionnaires were analyzed using SPSS version 23 and SMART PLS package programs. The Specifically the findings show that a unit increase in the construct forensic audit results to 0.307 units increase in the overall performance of the MFI while a unit increase in the construct forensic litigation results to 0.121 units increase in the performance construct. Also, a unit increase in forensic audit will results to 0.469 units increase in forensic litigations. To conclude from the t-statistics the results revealed that both forensic audit and forensic litigation positively affect performance of MFIs but the effect of forensic litigation was positive and insignificant. At the end it was recommended that MFIs should employ the services forensic accountant on their activities, also they should adopt code of conduct governing the practice of forensic accounting. Last but not the least stake holders, authorities or government should impose the use forensic accounting and auditing in every organisation and other agencies to deter corruption in all sectors of the economy.