FORENSIC ACCOUNTING AND FRAUD MANAGEMENT AMONG SMALL AND MEDIUM SCALE ENTERPRISES IN ETI-OSA LOCAL GOVERNMENT, LAGOS, NIGERIA

This study examined the role of forensic accounting on fraud management among Small and Medium Scale Enterprises (SMEs) in Eti-Osa Local Government Area, Lagos. Nigeria. The study was motivated by the persistent occurrence of fraudulent activities among SMEs and the limitations of conventional accounting and auditing procedures in detecting increasingly sophisticated forms of fraud. Specifically, the study examined effect of forensic accounting practices on fraud management effectiveness among SMEs. The study adopted a descriptive research design using a survey approach. The population comprised 1,451 middle- and senior-level accounting and administrative staff of SMEs in Eti-Osa Local Government Area. A sample size of 314 respondents was determined using Yamane’s formula at a 5% margin of error, while stratified random sampling was employed. Data were collected through a structured questionnaire administered electronically using Google Forms. Of the 314 questionnaires administered, 240 valid responses were retrieved and analysed. The data were analysed using descriptive statistics, and multiple regression analysis. The results revealed that forensic accounting practices had a statistically significant influence on fraud management effectiveness, with R = 0.697, R² = 0.485, Adjusted R² = 0.474, F = 44.152, and p < 0.001. Among the predictors, fraud investigation emerged as the strongest significant predictor (β = 0.844, t = 5.214, p < 0.001). The study concludes that forensic accounting constitutes an important mechanism for strengthening fraud detection, reducing fraud incidence, and improving fraud management effectiveness among SMEs in Eti-Osa Local Government Area. It therefore recommends that SME owners and managers strengthen the adoption and institutionalisation of forensic accounting practices, particularly fraud investigation, as part of their broader fraud detection and control mechanisms.