Impact Of Forensic Audit On The Detection And Prevention Of Fraud In Banks:- Agu Onyekachi S

ABSTRACT This study is to examine the Impact of Forensic Audit on the Detection and Prevention ofFraud in Banks. The specific objectives are to; determine the impact of uncheckedfraud on the capitalformation ofthe firm, discover ifforensic audit has been a useful tool in prevention offraud perpetration in business organization, determine iffrequentfraud increases business mortality rate -which affects economic growth of the nation, determine the effect offorensic auditors in dependence on elimination offraud, discover if companies are always keen to report fraud when there is existence of fraud in the business organization, give advice or solution to the problems. To achieve the objectives of the study survey research design was adopted and data collected through the distribution of questionnaire among staffs ofthe First bank, fidelity bank and United Bankfor Africa (UBA). The findings revealed that the impact of unchecked fraud has affected the capital formation ofmany firms, forensic audit has been an effective toolfor prevention of fraud perpetration in the business, high business mortality rate is due to frequent fraud in the organization, fear to reportfraud is a majorfactor that leads to failure of commercial banks, partial independence offorensic auditors and high cost of forensic audit has significant effect with the performance and use offorensic auditors. The study recommends that measures should be used instead of conventional audit to reduce cases offraud and restore sanity and sanctity to the banking industry, forensic audit should be taken to safeguard against future occurrence offraud to eliminate mortality offirms, people should reportfraud when it occurs in the organization because to hide it, will create room for failures of business and disinvestment by investors.