ABSTRACT

The subject matter of this study was "The Application of Forensic Audit in the detection and prevention of fraud in the companies of interest which was carried out with diligent and care. Some problems were formulated and objectives of the study were declared. The sample size was 100 while the populatin was 134. The researcher employed simple random sampling techniques which enabled each nlember of the population to have equal chance to be selected. Objective of the study: in view of the problems highlighted in the statement of the problem, this sthdy was undertaken for the following objectives: To determine the application of unchecked fraud on the capital formation of the companies of interest. To discover if forensic audit been has a useful tool in prevention of fraud perpetration in business organization. To determine if frequent fraud increases business mortality rate which affects economic growth of the nation. To determine the effect offorensic auditor's independence on elimination of fraud. To give advice on solution to the problems. Testing the hypothesis: in this section, the hypothesis was tested using the chi-square (X2) method. The decision criterion was used. The null hypothesis was donated (Ho) which was chosen according to the validity of the test as indicated. In chapter three, for data collection, primary and secondary sources of data were utilized in eliciting relevant information for the purpose of this study. Secondary sources of data, enlisted data collected internally from the companies used as a dise study while others were gathered from outside the case study. Such as periodicals, text bàoks, journals and magazines. They were ued to complement primary sources. Fnally, having written at length on the application of forensic audit in the detection and prevention of fraud. The following recommendations were proffered; measures were used instead of conventional audit to reduce cases of fraud, sanity and sanctity to the banking industry. Forensic audit were taken to safeguard against future occurrence of fraud to eliminate mortality of banks. People should report fraud when it occurs in the organizations because to hide it will create room for failures of business and disinvestment by investors. Forensic accounting department were added to public sector accounting and law firms to help in analyzing, interpreting, summarizing and presenting financial issues and situations in an understandable and supportable manner. Forensic auditors were given freedom to carry out all necessary research into the act invited of the banks. There should be adequate independence to the forensic auditors.