EFFECT OF FORENSIC ACCOUNTING SERVICES ON FRAUD PREVENTION OF LISTED DEPOSIT MONEY BANKS IN FCT ABUJA, NIGERIA – International Journal of Social Sciences and Management Review

EFFECT OF FORENSIC ACCOUNTING SERVICES ON FRAUD PREVENTION OF LISTED DEPOSIT MONEY BANKS IN FCT ABUJA, NIGERIA

Authors: Sam Sunday, Enekwe Chinedu Innocent Ph.D & Obasi John Ogbonnia Ph.D

ABSTRACT

In the recent years, forensic has become vital not only for policy makers but also for all the users of information to ensure, the trust of different stakeholder groups beyond the stockholders is critical which necessitated the study on effect of forensic accounting services on fraud prevention of listed deposit money banks in FCT Abuja, Nigeria. The study adopted primary sources of survey research design for data collection through the use of five-point likert scale structured closed-ended questionnaire of fifteen listed deposit money banks in FCT Abuja, Nigeria. The study was anchored on both profession theory and fraud diamond theory. The coding method was employed for questionnaire respondents to help analysis the data using SPSS version 25 software statistical and panel ordinary least square. The multiple regression model was adopted to determine the effect of forensic accounting services (, forensic auditing services and forensic expert consultancy services) on dependent variable (fraud prevention) of the banks under study. The result indicated that forensic auditing services and forensic expert consultancy services have positive insignificant effect and positive significant effect on fraud prevention of listed deposit money banks in FCT Abuja, Nigeria. The implication of the result is that any increase unit change in the services of forensic auditing and forensic expert consultancy will result to the same unit increase change in the fraud prevention and vice versa. Based on the findings, the researcher recommended that the Financial Reporting Council (FRC) should also ensure the best standards, regulations, and guidelines are established to ensure service delivery and best practices because traditional auditing has limitations in preventing fraudulent practices, which the forensic accountants will effectively fill. Also, the management should employ the services of forensic expert consultants, which will help in the prevention of fraudulent activities commitment in the banking sector in Nigeria. The forensic expert consultants should be charged with the training and retraining of the employees of the banks on the importance of avoiding fraudulent activities in order to improve their profitability.

Keywords: Fraud prevention, forensic auditing services, forensic expert consultancy services, multiple regression and SPSS.

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