Role Of Forensic Accounting In Preventing Fraud In Corporate Firms (A Case Study Of First Bank Nig. Plc And GT Bank)

ABSTRACT

Due to the ineffectiveness of traditional audit to cope with the sophistication of modern fraud, many organizations especially banks had to resort to forensic accounting. The basic objective of this study was, therefore to empirically validate the claim that it was only forensic accounting that can meet with the threat of today fraudsters. It was a case study of some selected banks. Two single regression models were specified for the study in order to capture the impact of forensic accounting on fraud. The result from estimation of the models by applying ordinary least squares (OLS,). With the use of e- view statistical software indicated that both computer assisted auditing technology and data mining had a negative and significant impact on fraud in the Nigerian banking system. It was recommended that every bank and corporate organization should replace their traditional audit department with one of forensic accounting, Nigerian legal system should adopt forensic accounting for prosecuting cases of fraud, and the Nigerian government and security agencies should adopt forensic accounting in the fight against corruption and fraud.