Abstract
The increasing prevalence of fraud and technical errors in the public sector has underscored the importance of forensic accounting for enhancing financial accountability and transparency. This study investigates the role of forensic accounting in fraud detection, prevention, and litigation support within Malawi’s public institutions. With growing concerns over financial mismanagement and its impact on national debt and public service delivery, the demand for forensic accountants is becoming more critical. To assess the effect of forensic accounting practices, a structured Google Form questionnaire was distributed to 85 purposively sampled respondents, comprising internal auditors from the Central Internal Audit Unit (CIAU), external auditors from the National Audit Office (NAO), and accountants from various government ministries and departments. Quantitative data analysis was performed using Independent Sample T-Test, One-way ANOVA, Mann–Whitney U Test, and Kruskal–Wallis H Test. The results revealed that forensic accounting techniques significantly aid in preventing and detecting fraud in the public sector. Respondents also affirmed that forensic accounting skills enhance the effectiveness of fraud investigations. Furthermore, a strong positive relationship was observed between forensic expert witnessing and the provision of credible litigation support within Malawi’s legal system. The study concludes that integrating forensic accounting into public financial management is vital for improving financial integrity, transparency, and accountability. It recommends capacity building in forensic accounting and greater institutional support to maximize its potential benefits in the Malawi public sector.
Keywords: Anti-Fraud Measures, Financial Mismanagement, Forensic Accounting, Fraud Detection, Fraud Prevention, Litigation Support.