UTILIZING FORENSIC ACCOUNTING TOOLS FOR ENHANCING FRAUD
PREVENTION AND DETECTION IN THE PUBLIC SECTOR: AN EXAMINATION OF ZIMBABWEAN LOCAL AUTHORITIES

UTILIZING FORENSIC ACCOUNTING TOOLS FOR ENHANCING FRAUD
PREVENTION AND DETECTION IN THE PUBLIC SECTOR: AN EXAMINATION OF ZIMBABWEAN LOCAL AUTHORITIES

SILIBAZISO ZHOU (P009156A)

Fraud poses a significant challenge to the public sector in Zimbabwe, with severe consequences.
Local authorities are tasked with developing effective strategies to combat fraud. This study aimed
to investigate how the application of forensic accounting techniques can enhance fraud prevention
and detection within Zimbabwe's public sector, focusing on local authorities crucial for achieving
Zimbabwe’s Vision 2030. Operational objectives were outlined, and quantitative data was
collected. Drawing on pragmatism as the research philosophy, information was gathered from a
representative sample of 280 participants, including accountants, internal auditors, forensic
specialists, administrators, and law enforcement officials within local authorities. A structured 5-
point Likert questionnaire was employed, guided by the Reasoned Action theory. Through
Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA), a Structural
Equation Modelling (SEM) approach assessed the impact of forensic accounting's fraud prevention
and detection techniques, alongside forensic accounting services, on actual fraud prevention and
detection mechanisms in urban local authorities. The results indicated that the use of forensic
accounting's fraud detection techniques had the most significant influence, followed by prevention
techniques and then forensic accounting services. The study concluded that local authorities
leveraging forensic accounting for detection and prevention are better equipped to unearth and
prevent fraudulent activities. Challenges were identified, including educational, political, and legal
obstacles hindering the effectiveness of forensic accounting. To address these issues, the study
recommends that local authorities prioritize the adoption of forensic accounting techniques as a
primary defense against fraud. It suggests enhanced training for External Auditors and internal
auditors in fraud investigation over traditional auditing methods. Additionally, it calls for
governmental reassessment of existing laws and regulations, emphasizing the urgent need for the
Forensic Accounting Act and whistle-blowing legislation. The study also proposes a forensic
accounting fraud detective tool tailored for local authority use.

ZIMBABWE OPEN UNIVERSITY

2024