Forensic Accounting and Fraud Detection in Local Government Councils in Cross River State

Financial fraud within local government councils has continued to undermine public service delivery across Nigeria's South South geopolitical zone. This study investigates the application of forensic accounting techniques in detecting and documenting financial fraud in five local government councils in Cross River State between 2020 and 2024. Adopting a descriptive case study design, the research draws on audit reports, financial statements, and interviews with twelve officials from the Cross River State Auditor-General's office and the Economic and Financial Crimes Commission. Forensic accounting techniques examined include data mining, ratio analysis, bank reconciliation review, and document traceability auditing. Findings indicate that procurement fraud and salary padding were the most prevalent forms of financial misconduct, collectively accounting for sixty-eight percent of documented irregularities. Standard external audits failed to detect these irregularities in eighty percent of cases, highlighting the inadequacy of conventional auditing in detecting sophisticated fraud. The study further reveals limited deployment of forensic accounting specialists within state audit agencies, a systemic gap attributed to inadequate funding and personnel development policies. Recommendations include the mandatory engagement of certified forensic accountants in annual council audits and the introduction of forensic accounting into relevant undergraduate degree programmes in South South universities. Keywords: forensic accounting, fraud detection, local government, Cross River State, audit.