Effect of Forensic Audit on Bank Fraud in Nigeria
S. J. Inyada, PhD; D. O. Olopade, PhD; John, Ugbede

Abstract
The main objective of this study is to examine the effect of Forensic Audit on Bank Fraud in Nigeria. The unprecedented increase in cases of bank frauds in Nigeria has made the application of forensic audit an indispensable tool in the audit cycle. Forensic audit skills are contemporary and diagnostic audit tools that help in the detection, prevention and reduction of frauds. Forensic audit skills give not only greater and current insight into the banks’ internal control measures and risk management techniques but also made available the technical capability for the detection, prevention and reduction of frauds. This study therefore examines the effect of Forensic Audit on Bank Fraud in Nigeria. The survey design was employed and the sample of the study was 128 out of a population of 165. The data were analyzed using the ordinary least square (OLS) regression model. The findings show that forensic audit helps in an enhanced bank fraud detection and prevention. Furthermore, the results show that forensic audit is not just an effective tool but also an efficient tool for the detection, prevention and reduction of bank fraud in Nigeria. It is therefore recommended that forensic audit should be highly embraced by specialized institutions like bank and insurance companies to ensure that fraud cases are speedily detected and adequately prevented. Also, a separate body should be constitutionally established and mandated for the training and retraining of forensic auditors. It is also recommended that our institutions of higher learning, apart from teaching forensic accounting and auditing, should have standard forensic audit laboratories with the tools for practical study.

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