Abstract: THE USE OF FORENSIC ACCOUNTING IN REGULATORY COMPLIANCE IN THE MANUFACTURING SECTOR
This research explores the use of forensic accounting in ensuring regulatory compliance within the manufacturing sector, focusing on its impact on identifying and addressing regulatory breaches. The objectives are to assess the methodologies used by forensic accountants, evaluate the effectiveness of these methods in ensuring compliance, and identify challenges faced. A survey research design was adopted, collecting data from 320 forensic accountants and compliance officers in Lagos. The sample size was determined using Taro Yamane's formula, ensuring significant representation. The reliability coefficient score of the survey was 0.87. Findings indicate that forensic accounting significantly enhances regulatory compliance by employing detailed compliance audits and forensic investigations. However, challenges such as limited access to regulatory data and the complexity of manufacturing processes can hinder effectiveness. Recommendations include improving data access and transparency in regulatory processes and investing in advanced forensic tools and training to enhance compliance capabilities.
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