Abstract: Fraud is one of the major problems facing accounting environment industry in Kenya and it impact negatively to the whole of micro finance institution’s sector. Fraudulent practices in MFI’s have led to increase of losses and collapse of many of MFI’s sector, hence the need to use investigating accounting services to detect such fraudulent activities. The MFI’s industry is a very important institution in the segment of entrepreneur environments with many internal controls in order to overcome the fraudulent practices. The objective of this study was to investigate the effects of forensic accounting services on fraud detection on microfinance institutions in Bomet County, the specific objectives of this study were; to establish the effects of internal control; to determine the effects of information and technology; to establish effects of control environment and to moderate the effects of Government policy. The study used primary data. An ordinary linear regression model was used. The regressions were conducted using statistical package for social sciences (SPSS) version 20. The regression results indicated that there was negative and significant relationship effects of internal control and level of fraud prevention and detection. The results also indicated that there is a negative and significant relationship between effects of information and technology and level of fraud prevention and detection while the relationship between control environment and level of fraud prevention and detection was positive and significant. Following the study findings, the study recommended that MFIs should fully reconcile their accounts more frequently in order to reduce the cases of more incidences of frauds. The study also recommends that MFIs should put in place stronger financial governance control measures through more frequent meetings among the members of the risk management committee and also finance and investment committee. Another recommendation made by the study is that MFIs should reduce the variances in budgets through better reporting and budgetary control measures as it was reduce cases of frauds.
Keywords: EFFECTS, FRAUD DETECTION, MICRO FINANCE INSTITUTIONS.
Title: EFFECT OF FORENSIC ACCOUNTING SERVICES ON FRAUD DETECTION ON MICRO FINANCE INSTITUTIONS IN BOMET COUNTY
Author: ALFRED KIPLANGAT TONUI, DANIEL KAMAU, DR. KEPHA OMBUI
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
