The Role of forensic accounting in combating financial crimes in SMEs in Bindura Zimbabwe

Author

Runzonza, Mitchell. R

Title

The Role of forensic accounting in combating financial crimes in SMEs in Bindura Zimbabwe

Abstract

Financial crimes are increasingly becoming a global concern and Zimbabwean SMEs are not immune to this threat. This study investigates the role of forensic accounting in combating financial crimes within SMEs in Bindura, Zimbabwe. The study engaged a mixed-method with a target population of 227 registered SMEs in Bindura urban area. The research worked with stratified random selection method and a sample of 113 was selected for the study. Hundred and thirteen structured questionnaires and interviews were administered. Hundred and two questionnaires were returned and subjected to SPSS and AMOs. Major themes and patterns were identified. Interview data complimented quantitative data. The analyses involved confirmatory factor analysis to validate the measurement model and structural equation modelling (SEM) tested set hypothesis. Four hypothesis were tested to assess the feasibility of forensic accounting awareness, skills and implementation on financial crime reduction. The results showed that two hypothesis were strongly supported: H1 (β=0.399, p<0.001), signifying that forensic accounting awareness profoundly improves the implementation of forensic techniques, while H3 (β=0.403,
p<0.001), revealed that possessing forensic skills positively influence implementation. H4 received marginal support (β=0.264, p=0.052), suggesting awareness may reduce financial crimes, although the relationship is weak without practical implementation and H2 is not supported (β= -
0.055, p =0.682) indicating that the current level of forensic technique implementation has not significantly reduced financial crimes due to inefficiencies in application. The research recommends that regulatory authorities initiate widespread campaigns on the value of forensic accounting to SMEs successful operations. It further suggests fostering partnerships between SMEs and forensic experts for audit support, encourage government and academic institutions to provide accessible forensic accounting training programs tailored for SME environment

Date

June 2025

Publisher

BUSE

Keywords

Forensic Accounting

Financial Crimes

SMEs in Bindura

Supervisor

Nil