European Journal of Accounting, Finance and Investment

The Role Of Forensic Accounting Techniques In Preventing Fraud In Deposit Money Banks In Nigeria

Alematu Agbo (Ph.D)

Deparment of Accounting, Benue State University, Makurdi

Idimoasho Missa Gangum

Deparment of Accounting, Benue State University, Makurdi

Isaac Kwanum (PhD)

Deparment of Accounting, Benue State University, Makurdi

Keywords: forensic accounting, fraud prevention, investigative support services, expert witness, litigation support services

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Abstract

This research examined how forensic accounting techniques aid in the prevention of fraud in Nigerian Deposit Money Banks (DMBs) in Nigeria. This study used a survey with a 5-point Likert scale questionnaire. A total of 187 respondents out of a population of 350 who were staff of Thirteen (13) DMBs operating in Jalingo Metropolis as of December 31, 2021, were surveyed for the study. Fraud prevention was the dependent variable, while the independent variables were investigative support services, expert witness, and litigation support services. The variables were described using descriptive statistics, and the impact of forensic accounting techniques on banks' ability to prevent fraud was analysed using regression. The study found that expert witness had a positive but insignificant impact on fraud prevention, while litigation support and investigative support services both had positive and significant impact on fraud prevention. Forensic accountants have discovered that the skills of forensic accounting are among the most helpful resources available when confronted with potentially fraudulent cases. Managers of DMBs should consult forensic accountants so that fraudulent schemes can be stopped in their tracks as soon as the crooks come up with the idea. To guarantee that forensic accountants are used, when necessary, regulators like the SEC and CBN should steer the proper policy framework.