EFFECT OF FORENSIC AUDITING ON REDUCING FRAUD CASES IN NIGERIA MONEY DEPOSIT BANKS

Abstract

The study dwelt on the effect of forensic auditing in reducing fraud cases in Deposit Money Banks (DMBs) in Nigeria. The study sought to find out to find out the effect forensic auditing have of internal control system, cash management system and loan processing and repayment system. Survey research design was adopted in the study. Questionnaires, personal interviews, and document review were the methods that were used to obtain data for this study. A sample of forty eight bank auditors, operational managers and general managers were used from sixteen DMBs in Nigeria. Ordinary Least Square (OLS) regression was used to analysis the data and it was found that forensic auditing services is significantly associated with the internal control systems and cash management systems of DMBs but not significantly associated with loan processing and repayment system. The study recommended for the adoption of forensic auditing in addition to the external audit of DMBs in Nigeria.