ACCOUNTANTS’ CAPABILITY REQUIREMENTS AND FRAUD RISK ASSESSMENT IN NIGERIAN PUBLIC SECTOR: MODERATING ROLE OF PROFESSIONAL ETHICS

This study examined the effect of accountants‘ capability requirements on fraud risk assessment in Nigerian public sector, with the moderating role of Professional ethics. Fraud in the public sector remains a difficult challenge in Nigeria, where the misappropriation of public funds and financial malpractices undermine trust in government institutions and slow socioeconomic progress. This research was carried out using quantitative approach, cross-sectional research design, survey method of data collection and self-selection (convenience) sampling technique. Primary data was collected through questionnaire. The population comprised of the 10,196 Nigerian public sector accountants from the office of the Accountant General of the Federation, out of which a sample size of 404 was scientifically selected. The primary analytical method employed in this study is Partial Least Square Structural Equation, reflective measurement model with Stata version 17.0. Two models were developed: one to analyze the direct effect of capability requirements on FRA, and the other to examine the indirect effect of capability requirements with professional ethics as the moderator. The results revealed that PKR and PSR had positive significant effect on FRA. Whereas PATR had no effect on FRA. The moderator revealed that PES strengthened the positive effect of PSR on FRA with the moderating effect being positive and significant. Conversely, the effect of PKR was negative with PES as the result was shown to be significant but adverse. Additionally, the effect of the moderator on PATR and FRA was negative, as the result was statistically insignificant. This study concluded that accountants with higher technical knowledge have the ability to identify, evaluate and accurately carry out fraud risk assessment. The study recommended that the Office of Accountant-General of the Federation, Internal Audit, anti-corruption agencies and the Civil Service Commission should have continuous institutionalization of professional knowledge program geared towards FRA outcomes. Keywords: Accountants, Capability Requirements, Fraud Risk Assessment, Professional Ethics, Public sector