THE EFFECT OF FORENSIC ACCOUNTING ON FINANCIAL PERFORMANCE IN DEPOSIT MONEY BANKS IN NIGERIA

Abstract

Forensic accounting is the study and interpretation of accounting evidence used in administrative proceedings or for litigation purposes. Hence, the study examined forensic accounting and its effect on financial performance in combating fraudulent activities in Nigerian deposit banks. The study employed primary data obtained through survey research design with the aid of a well-structured questionnaire, the result of the study revealed that forensic investigation, forensic investigation and firm size contributed differently to the prediction of financial performance. The study concluded that forensic litigation was statistically significant in explaining changes in the financial performance of deposit money banks in Nigeria. It also discovered that the use of forensic financial information influenced and improved performance of commercial banks in Nigeria which has improved transparency in commercial banks hence it has curb financial fraud thus increasing profitability. The study, therefore, recommends that the management of the commercial banks should emphasize and enhance the use of forensic financial information as this will help in reducing fraud which has a positive effect on organizational performance. It also recommends that the management ensures that the bank adapts to new technological changes taking place in the world to ensure that they have a well-structured system to accommodate these changes, it is suggested that management put in place various types of fraud detection and prevention techniques, provide training programmes for employees and educate them on how to detect and prevent frauds