Forensic Accounting and Fraud Management of Listed Deposit Money Banks in Nigeria

Adesanmi Timothy  ADEGBAYIBI

Adesanmi Timothy ADEGBAYIBI Department of Accounting, Adekunle Ajasin University Akungba-Akoko, Ondo State, Nigeria

Keywords: Forensic accounting practices, forensic analytics, forensic review, fraud risk assessment, fraud management

Abstract

The increasing complexity of financial crime has driven calls for enhanced financial system safety, requiring the introduction of extensive forensic accounting. In view of this, this study examined the influence of forensic accounting on fraud management in Nigerian listed deposit money banks (DMBs). This study employed a survey research design. The study covered 308 staff members of purposively selected 10 DMBs listed on the Nigerian Exchange Group as of December 31, 2022. The data was investigated via descriptive statistics and ordinary least squares regression. The study revealed that forensic analytics, forensic review, and fraud risk assessment positively and significantly affect the fraud management of listed DMBS in Nigeria. The study concludes that enhancing forensic accounting processes considerably boosts the identification, prevention, and management of fraudulent conduct within financial institutions. It was recommended that management should invest in advanced forensic analytics technology to increase its power to detect and address fraudulent conduct by evaluating enormous volumes of financial data for irregularities. Financial institutions should perform thorough, frequent, and full reviews of financial data to uncover abnormalities and suspected fraudulent activities early. Management should add fraud assessments into their routine auditing methods to continuously monitor and fix vulnerabilities.

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