THE ROLE OF FORENSIC AUDITING IN FRAUD DETECTION AND PREVENTION IN SELECTED NIGERIAN BANKS

ABSTRACT

This study examined ‘the role of forensic auditing in curbing fraud in some selected banks in Nigeria’. Accordingly, the aim of this conceptual research work is to examine and ascertain if forensic auditing would serve as a tool to the lapses in internal and external auditing and to ascertain if fraud in Nigerian financial institutions can be reduced through effective forensic auditing. The design used in this study is the survey research design and the sample size of this study was a total number of seventy (70) staff of selected banks within the University of Benin drawn from our population for empirical investigation. The study adopted descriptive statistics which involves the use of frequency and percentage. Data analysis revealed that a vast proportion of the respondents had an adequate level of knowledge and awareness on the following variable; forensic auditing 87%, role of a forensic auditor 72%, and the respondents agreed to all the examined variable concerning the role of forensic auditing in fraud prevention and detection in the bank. Based on researcher findings, it is hereby concluded that those who agreed that forensic auditing is a better way to combat fraud in Nigerian banking sector were more than those who disagree that forensic auditing does not help in detecting fraud in banking sector in Nigeria. Time and again, it has been established that corporate frauds are one of the major hindrances to the inclusive growth of the economy. In any economy the rise in corporate frauds is directly proportionate to the fall of economy. Therefore, Forensic Audit is a strategical approach in detecting the financial frauds in the organizations along with enhancing their financial stability at par.