USEFULNESS OF FORENSIC AUDITING IN THE DETECTION AND PREVENTION OF FRAUD

ABSTRACT

This research delves into investigating the influence of forensic auditing on fraud detection and prevention Despite considerable interest in the relationship between forensic auditing and fraud detection and prevention, prior studies have yielded inconclusive results, indicating a need for further examination, particularly in developing countries like Nigeria, where corruption and financial statement manipulation still prevails The study focused on five (3) quoted companies operating on the Nigerian exchange group 2023. Primary data was collected through questionnaires administered to 50 top managers of the sampled companies, and a survey research design was employed. Data analysis involved descriptive statistics; chi square method was used to test for the hypothesis. The research revealed a positive association between forensic auditing, forensic auditing techniques and fraud detection, and a negative correlation between the impact of forensic auditing on digital environment, and the impact of ethical and professional value on fraud detection and prevention. As a result, the study recommends that by creating more specialized agencies to concentrate on technology, ethics, and other areas for preventing fraud, the regulatory authorities should make their presence felt in the fight against fraud. Organisations, and firms should retain the services of qualified forensic accountants who are vast in the use of appropriate fraud deterrence methods in order to prevent fraud before it occurs