European Journal of Accounting, Finance and Investment

Forensic Auditing And Holistic Internalcontrol Mechanism: A Tactical Strategy For Enhancing Organizations Performance

Peter-Mario Efesiri EFENYUMI

Department of Accounting, Michael and Cecilia Ibru University, Agbarha-Otor, Delta State, Nigeria

Alutosa Uwomano IKELEGBE

Department of Accounting, Western Delta University, Oghara, Delta State, Nigeria

Sylvester Eseoghene OKAH

Department of Accounting, Western Delta University, Oghara, Delta State, Nigeria

Stanley Ovwigho OBIEBI

Department of Accounting, Western Delta University, Oghara, Delta State, Nigeria

Keywords: Forensic Auditing, Holistic Internal Control Mechanism, Tactical Strategy, Organisation Performance, Net Profit Margin, Return on Assets, Nigeria

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Abstract

Financial and economic fraud has become more widespread in recent years, with perpetrators continuously evolving their techniques to exploit new vulnerabilities and the rising incidence of financial irregularities and corporate fraud has intensified the need for robust forensic auditing to enhance transparency, strengthen internal controls, and safeguard firm profitability. This study aspires to objectively explore the relationship between forensic auditing practices (fraud detection rate), holistic internal control mechanism and organisation performance (firm profitability for years 2015 - 2024. Employing ex-post facto research design, extracted data were analysed for descriptive statistics; the robust regression technique hypothesis testing and the findings showed that individually, fraud detection rate, and firm size exert significant positive influence on efforts directed at enhancing tactical strategy for organizations performance while increasingly combining too many internal control mechanisms without quality assurance in focus dampens tactical strategy for organizations performance. Fraud detection rate, holistic internal control mechanism and firm size jointly exert significant influence on efforts directed at enhancing tactical strategy for organizations performance: NPM (F-stat = 17.85; p-value = 0.0000) and ROA (F-stat = 6.75; p-value = 0.0004). It was therefore concludes that fraud detection rate, holistic internal control mechanism and firm size exert significant influence on efforts directed at enhancing tactical strategy for organizations performance. The study therefore recommends that organisations and her management should foster a culture of integrity as policy that can drive a layered, holistic control framework embedded in data-driven technology with continuous training for employee and all stakeholders

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