Impact of Forensic Accounting Practices and Fraud Detection and Prevention in Listed Deposit Money Banks in Nigeria

Rapheal Olufemi Ogunleye; Iyanuoluwa Olaoluwa Fanimokun

doi:10.59890/ijaamr.v3i6.46

Authors

Rapheal Olufemi Ogunleye Federal College of Education (Technical) Akoka
Iyanuoluwa Olaoluwa Fanimokun Dominion University, Ibadan

DOI:

https://doi.org/10.59890/ijaamr.v3i6.46

Keywords:

Forensic Accounting, Fraud Detection, Fraud Prevention, Financial Reporting Quality, Deposit Money Banks

Abstract

This study investigates the impact of forensic accounting practices on fraud detection and prevention in listed Deposit Money Banks (DMBs) in Nigeria, focusing on their influence on financial reporting quality (FRQ). Utilizing secondary data from 2015 to 2024, sourced from annual reports and financial statements of DMBs listed on the Nigerian Exchange Group (NGX), the study employs a quantitative ex post facto design and panel regression analysis. Key variables examined include Engagement of Forensic Accountants (EFA), Forensic Investigation Skills (FIS), and Forensic Detection and Prevention Techniques (FDPT). Findings reveal that FDPT has the most significant positive effect on FRQ (β = 0.004, p = 0.003), followed by EFA (β = 0.003, p = 0.015), while FIS shows a weaker, marginally significant impact (β = 0.002, p = 0.072). The model explains 78% of FRQ variation, underscoring the critical role of forensic accounting in enhancing report accuracy and mitigating fraud. The study addresses gaps in prior research by emphasizing secondary data to reduce self-reporting biases and highlighting the need for continuous training and digital forensic tools to combat emerging cyber fraud. Recommendations include integrating advanced forensic tools, mandatory training for audit staff, and fostering transparent internal controls to strengthen fraud prevention and financial integrity in Nigerian DMBs

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