ABSTRACT

This study aimed at evaluatingforensic accounting and its influence on fraud detection and prevention in Nigeria. The ex-post facto research design was adopted and data collected from both primary and secondary sources. The collected data was analysed using the ordinary least square technique. The empirical results the study revealed that the estimated coefficient ofthe regression parameters have positive sign and thus conform to our priori economic expectation. The implication of this sign is that the dependent variable Fraud Detection & Prevention (FDP) is positively influenced by Assisted Auditing Technique (CAAT), Data Mining (DM), Relative Size Factor (RSF) and Benford Law (BL). The study revealed that AssistedAuditing Technique (CAAT), Data Mining (DM), Relative Size Factor (RSF) and Benford Law (BL) have a significant influence onfraud detection & prevention. In view ofthe craze for money in Nigeria, misplace value judgment and the prevailing harsh economic environment, frauds are on the increase and the banks are losing amount running into millions ofnaira to fraudsters almost on daily basis. In most cases when the frauds are detected early, amount already drawn are usually difficult to recover. The study recommended that auditors are expected to consider whether the information presented in the financial statements is relevant, reliable, comparable and understandable when forming an opinion on whether financial statements fairly present the financial position, results of operations and cashflows ofan entity and are required to discuss theirjudgement about the quality ofan entity'sfinancial statements with the audit committee. Il is recommended that this quality assessment will enhance the usefulness offinancial informationfor all users and should therefore be included in the statutory auditor’s report. Also, there should be great awareness of the problem offorensic accounting in Nigeria, as evidenced by articles in accounting and businessjournals. This poses a major threat to the accounting profession, in terms of their credibility and standing in the business community. It also creates major problems oflitigation risk for auditors. Ifthe government and the accounting profession in Nigeria work together then the concept oftrue andfair view can be a keypart ofthe solution to this problem.