Forensic Accounting and Fraud Detection in Ghana’s Public Sector. The Moderating Role of Cashless Policy and Internal Controls

Abstract

This study investigates the influence of forensic accounting competencies on fraud detection in Ghana’s public sector, with a particular focus on the moderating roles of cashless policy and internal controls. Despite the existence of audit and oversight institutions, persistent financial irregularities continue to undermine accountability, necessitating deeper examination of how professional expertise interacts with institutional reforms to mitigate fraud. Guided by the Fraud Triangle Theory, Agency Theory, and Institutional Theory, the study employed quantitative research design. Structured questionnaires were administered to 150 forensic accounting practitioners, and the data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to ensure robustness in measurement and structural assessment. The findings reveal that all key forensic accounting competencies, analytical proficiency, oral and written communication, investigative intuitiveness, legal knowledge, auditing skills, and understanding of organizational behavior positively and significantly impact fraud detection. Effective written communication emerged as the strongest predictor, highlighting the critical role of reporting and documentation in ensuring accountability. Investigative intuitiveness and legal knowledge also demonstrated strong influences, underscoring the importance of professional judgment and compliance frameworks. Regarding the moderating variables, cashless policy exerted a significant but negative moderating effect, suggesting functional overlaps between digital reforms and forensic practices. In contrast, internal controls provided a full positive moderating effect, indicating that forensic competencies are most effective when embedded within strong institutional frameworks. The study advances theory by disaggregating competencies and offers practical guidance for policymakers and practitioners in Ghana and across Sub-Saharan Africa