CHAPTER ONE

1.0                                                          INTRODUCTION

Mobile wise geek (2011) defined fraud as a deliberate misrepresentation that causes a form of monetary losses. All of these are usually required for an act to be considered fraud, if someone lied about his name.

United states legal (2011), defined fraud an international misrepresentation of material existing facts made by one person to another with the knowledge of its falsity and for the purpose of inducing the other person to act, and upon which the other person relies with resulting injuries or damages.

Fraud has been in existence from the beginning of creation, and the increase of fraud on daily basis brought about forensic auditing.

Forensic auditing is defined as the activity that consist of gathering, verifying, processing, analyzing of and reporting of data in order to obtain facts and /or evidence in the area of legal of financial disputes and or irregularities including fraud and giving preventative advice. IFA (2011).

Fraud is an independent criminal offence, and it is the main phenomenon that gave birth to forensic auditing, especially those related to economic crime. These economic crimes are known to be an unpleasant fact and a disheartening issue in

the heart of many organizations, and the control of it, is a concern for any organization that employs employees, accountants or other hired professional that have access to the organization’s income, receipts or funds.

Therefore, we are faced with the inescapable conclusion that forensic auditors are charged with the responsibility of controlling and preventing those fraudulent practices.

1.1              BACKGROUND OF THE STUDY

Brief History of Economic and Financial Crime Commission (EFCC)

The Economic and Financial Crime Commission (EFCC) has grown to a robust and reputable national institution that now commands respect. They have gained the admiration of Nigerians and tge international community as a whole as the most vibrant anti-corruption fighting organization that has fought corruption to a standstill within the short time of its existence.

Over the years, Nigeria suffered tremendously in her economy in the hands of corrupt leaders who for selfish reasons reduced a country like Nigeria which is rich in oil to one of the poorest countries in the world. All these brought about the establishment of EFCC.

i. Formation of the Economic and Financial Crime Commission (EFCC)

The Economic and Financial Crime Commission (EFCC) was established in 2003 by the Economic and Financial Crimes Commission Act 2002, and re-enacted in 2004 by the Act as a body corporate with perpetual succession and common seal. It has its headquarter at No 5 Fomella Street, Off Crescent, Wuse 11, Abuja. With Nuhu Ribadu as the first executive chairman until 2008 he was replaced by Fomida Waziri, and Mr. Ibrahim Lamorde was appointed the chairman of the commission on 15th February 2012 and he is still the substantive chairman till date.

Its establishment was partially in response to pressure from the financial task force on money laundering (FATF), which named Nigeria as one of the 23 countries non-corporative in international communities’ effort to fight money laundering.

ii.       Vision statement: To make Nigeria a safe and corrupt free business environment for sound health and positive image of the country.

iii.   Mission statement: The mission statement of the commission includes;

a. To curb the menace of corruption that constitutes the cog in the wheel of progress of Nigerians.

b. To protect national and foreign investments in the country.

c. To imbibe the spirit of hard work in the citizenry and discourage ill-gotten wealth.

d. To identify illegally acquired wealth and confiscate it.

e. To build an upright workforce in both public and private sector of the economy.

f. To contribute to the global war against financial crimes and terrorism financing in Nigeria.

1.2       STATEMENT OF THE PROBLE