Does forensic audit influence fraud control? Evidence from Nigerian deposit money banks

  • Received October 28, 2019;
    Accepted March 23, 2020;
    Published June 30, 2020
  • Author(s)
  • DOI
  • Article Info
    Volume 15 2020, Issue #2, pp. 214-229
  • Cited by
    7 articles

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

This study examines the importance of the application of forensic audit in controlling financial frauds that ravage or threaten the soundness and business continuity of Deposit Money Banks (DMBs) in Nigeria. The study used survey design methods, and the primary data were obtained through the administration of structured questionnaire covering seventeen (17) banks out of twenty-two (22) Deposit Money Banks (DMBs) operating in the country, which is 77.3%. In this study, the Ordinary Least Squares (OLS) method was used to analyze and test hypotheses, and the findings showed that the involvement of qualified and experienced forensic auditors would not only contribute to the amelioration of financial frauds in DMBs, but would also lead to much-needed sanity in the banking sector of Nigeria. The study recommends that regulatory agencies, within the limits prescribed by law, mandate all the banks to create a special forensic department, managed by a professional forensic auditor, which will develop and constantly implement effective and efficient internal control, timely prosecution of fraudsters by considering them to be criminals and as a deterrent to others, and work out adequate training and development programs for their staff, especially in fraud control, in order to reduce the number of fraud cases in Nigerian banks.

view full abstract hide full abstract
    • Table 1. Reliability test
    • Table 2. Model summary
    • Table 3. ANOVA
    • Table 4. Coefficients
    • Table 5. Collinearity diagnostics
    • Table 6. Correlations
    • Table 7. Model summary
    • Table 8. ANOVA
    • Table 9. Coefficients
    • Table 10. Collinearity diagnostics
    • Table 11. Correlations
    • Table 12. Descriptive statistics
    • Table 13. ANOVA
    • Table 14. Gender of a forensic auditor
    • Table 15. Analysis of null hypotheses