An Empirical Study of Forensic Accounting and Fraud Management by Listed Banks in Nigeria.

Abstract:

The study examined the effect of forensic accounting services such as fraud investigation and litigation support services on fraud management using listed banks in Nigeria. Two research hypotheses were formulated and tested in the course of the study. The study adopted the descriptive survey research design with a population of 125 staff of forensic accounting and internal control departments of 25 listed banks. A sample of 95 respondents drawn from 12 listed banks in Nigeria was used for the study. The researcher developed an instrument titled “Forensic Accounting and Fraud Management Questionnaire (FAFMQ)”and used it for data collection. The instrument was tested and validated by experts. The data were analyzed through analysis of variance using Statistical Package for Social Sciences version 21 (SPSS 21). The hypotheses were tested at 5% level of significance.  The study revealed that the application of forensic accounting by banks has significant effect on fraud management by listed banks in Nigeria. The study also showed that fraud investigation and litigation support significantly managed fraud among the listed banks in Nigeria. It was recommended that banks should take advantage of forensic accounting services to ensure operational efficiency and effectiveness in fraud management. The study recommends the establishment and enhancement of forensic accounting and auditing functions in banks as separate departments in order to manage the prevalence of fraud among Nigerian banks.