ABSTRACT

 This study is to examine the Impact ofForensic Audit on the Detection and Prevention ofFraud in Banks. The specific objectives are to; determine the impact ofuncheckedfraud on the capital formation ofthe firm, discover ifforensic audit has been a useful tool in prevention offraud perpetration in business organization, determine iffrequent fraud increases business mortality rate which affects economic growth of the nation, determine the effect offorensic auditors in dependence on elimination offraud, discover ifcompanies are always keen to reportfraud when there is existence of fraud in the business organization, give advice or solution to the problems. To achieve the objectives ofthe study survey research design was adopted and data collected through the distribution ofquestionnaire among staffs ofthe First bank, fidelity bank and United Bankfor Africa (UBA). Thefindings revealed that the impact ofuncheckedfraud has affected the capital formation of many firms, forensic audit has been an effective tool for prevention offraudperpetration in the business, high business mortality rate is due to frequent fraud in the organization, fear to report fraud is a major factor that leads to failure of commercial banks, partial independence offorensic auditors and high cost offorensic 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 report fraud when it occurs in the organization because to hide it, will create room for failures of business and disinvestment by investor