RELATIONSHIP BETWEEN FORENSIC ACCOUNTING AND FINANCIAL FRAUD IN NIGERIAN DEPOSIT MONEY BANKS

Rihanat Onize Amin, Ibrahim Yakasai Aminu and Adamu Garba Zango
Volume 2 Issue 2

Abstract

Consequent upon globalisation of trading and business transactions, financial fraud within the global economy has been on the increase. Forensic accounting which is the new technique for detecting fraud has become an emerging topic of great importance for research by industry giants and the academic. The study examined the relationship between forensic accounting and financial fraud in Nigerian deposit money banks. Specifically, the study examined if there is significant effect of forensic accounting in financial fraud control, forensic accounting in improving financial reporting quality and the effectiveness of forensic accounting in improving the quality of internal controls of DMBs in Nigeria.The survey design methodology was employed in the study utilising a sample size of 143 made up of the banks’ accountants, internal and external auditors, top management staff, users, as well as the academics as population of the study. The simple random sampling technique was used in selecting the sample size, with the binomial test employed in analysing the data. Findings of the study indicates that there is significant effect of forensic accounting in financial fraud control, forensic accounting in improving financial reporting quality and the effectiveness of forensic accounting in improving the quality of internal controls of DMBs in Nigeria. In line with the above findings, this study recommends that the Institute of Chartered Accountants of Nigeria (ICAN), Association of National Accountants of Nigeria (ANAN) and the National Universities Commission (NUC) should encourage the formalization and specialization of forensic accounting as a standalone field of study. Additionally, government through its regulatory agencies such as the CBN, NDIC and FRC should stimulate interest and application of forensic accounting as a technique for monitoring and investigation of fraud related cases in DMBs in Nigeria.This could possibly help to reduce financial fraud and related fraudulent activities in DMBs of Nigeria. Key Words: Deposit Money Banks, Financial Fraud, Forensic Accounting, Nigeria

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