Abstract
This study examines the importance of the application of forensic audit in controlling financial frauds that ravage or threaten the soundness and business continuity of Deposit Money Banks (DMBs) in Nigeria. The study used survey design methods, and the primary data were obtained through the administration of structured questionnaire covering seventeen (17) banks out of twenty-two (22) Deposit Money Banks (DMBs) operating in the country, which is 77.3%. In this study, the Ordinary Least Squares (OLS) method was used to analyze and test hypotheses, and the findings showed that the involvement of qualified and experienced forensic auditors would not only contribute to the amelioration of financial frauds in DMBs, but would also lead to much-needed sanity in the banking sector of Nigeria. The study recommends that regulatory agencies, within the limits prescribed by law, mandate all the banks to create a special forensic department, managed by a professional forensic auditor, which will develop and constantly implement effective and efficient internal control, timely prosecution of fraudsters by considering them to be criminals and as a deterrent to others, and work out adequate training and development programs for their staff, especially in fraud control, in order to reduce the number of fraud cases in Nigerian banks.
Highlights
Every business organization exists to create wealth for its owners by offering products or services that satisfy effective demand (Efiong, 2012)
This study focused on forensic audit as a tool for fraud control in Deposit Money Banks (DMBs) in Nigeria
In an attempt to unravel the objectives of the study, four hypotheses were developed and tested, which include the role of forensic auditing in controlling financial frauds in DMBs, the relevance of a forensic auditor’s skills and knowledge in providing a quality expert opinion for the timely adjudication of financial fraud cases in courts of law, the degree to which the experience of a forensic auditor is related to reduction or detection of financial frauds in DMBs, and the effect of gender on the timely resolution of court cases
Summary
Every business organization exists to create wealth for its owners by offering products or services that satisfy effective demand (Efiong, 2012). This, suggests that every business enterprise needs a good leader to create synergy and vision to ensure the attainment of its corporate objective. One of the factors threatening the actualization of the corporate objective of business enterprises globally is fraud (Zhiwei, Lainhart, & Stabbs, 2014). In Nigeria, frauds in banking are on the increase, which contributes to distress and failure of some banks and industries (Nigeria Deposit Insurance Corporation Report, 2016). This poses a threat to the actualization of corporate objectives of a business enterprise
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