INFLUENCE OF FORENSIC ACCOUNTING PRACTICES AND FINANCIAL ACCOUNTABILITY IN SELECTED HEALTH STATE CORPORATIONS IN KENYA

Résumé

Financial accountability remains a challenge in many health state corporations due to persistent cases of financial mismanagement, fraud, and weak accountability systems. Despite reforms in public financial management, financial irregularities continue to undermine transparency and service delivery. Consequently, there is increasing need for adoption of forensic accounting practices as mechanisms for enhancing accountability. However, limited empirical evidence exists on the influence of forensic accounting practices on financial accountability in health state corporations in Kenya. The purpose of this study was to establish the influence of forensic accounting practices on financial accountability in health state corporations in Kenya. The study was guided by four specific objectives: to establish the influence of litigation support services, fraud detection techniques, forensic investigation, and expert consultancy services on financial accountability in health state corporations in Kenya. The study was anchored on forensic accounting theory and the fraud diamond theory. The study adopted a descriptive research design. The target population comprised 200 senior staff members drawn from health state corporations in Kenya. A sample size of 133 respondents was determined using Yamane’s (1967) formula. Both primary and secondary data were utilized in the study. Primary data was collected using structured closed-ended questionnaires, while secondary data was obtained from audited financial statements of health state corporations. A pilot study was conducted to assess validity and reliability of the research instruments. Validity was tested using the Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy and Bartlett’s Test of Sphericity, while reliability was assessed using Cronbach’s Alpha coefficient. Data analysis involved both descriptive and inferential statistics. Inferential analysis included correlation analysis, diagnostic tests, model summary analysis, ANOVA, and multiple regression analysis. Statistical analysis was conducted using SPSS, and findings were presented using tables. The findings established that forensic accounting practices jointly explained 57.8% of variation in financial accountability (R² = 0.578). The ANOVA results indicated that the overall regression model was statistically significant (F = 64.710, p = 0.000), demonstrating that forensic accounting practices significantly influence financial accountability. Regression findings further revealed that Litigation Support Services (β = 0.617, p = 0.000), Fraud Detection Techniques (β = 0.595, p = 0.004), Forensic Investigation (β = 0.452, p = 0.000), and Expert Consultancy Services (β = 0.563, p = 0.007) had positive and statistically significant effects on financial accountability. Litigation Support Services recorded the strongest influence among the study variables. The study concluded that forensic accounting practices significantly enhance financial accountability in health state corporations in Kenya by improving transparency, strengthening fraud detection mechanisms, enhancing investigative processes, and supporting financial decision-making. The study recommends that health state corporations strengthen forensic accounting frameworks by investing in litigation support systems, modern fraud detection technologies, forensic investigations, and expert consultancy services. Further, policymakers should develop institutional policies and guidelines to support implementation of forensic accounting practices within public health institutions.

JEL: M42, M41, H83, K42