Application of Forensic Accounting as a Tool for Fraud Prevention in the Nigerian Deposit Money Banks

International Journal of Research and Scientific Innovation (IJRSI) | Volume VIII, Issue XI, November 2021 | ISSN 2321–2705

Application of Forensic Accounting as a Tool for Fraud Prevention in the Nigerian Deposit Money Banks

Dugguh Richard Dugguh¹, Omale A. Jonathan², Alhassan Odiniya Innocent³, Nwogbo Chimezie Rose⁴, Williams Blessing Nkemakonam⁵, Felicia Ekate Jacob⁶, Ifidi Bodisere Judith Dienein^7
1MSC, BSC, Federal Polytechnic Ekowe, Bayelsa State, Nigeria
²PhD,MSC,BSC, Federal Polytechnic Ekowe, Bayelsa State, Nigeria
³M.SC, B.SC, HND, CNA, NIM, CFCN, OCA, Federal Polytechnic Ekowe, Bayelsa State, Nigeria
⁴MBA, BSC, CNA, NIM, Federal Polytechnic Ekowe, Bayelsa State, Nigeria
⁵MBA, PGD, HND, Federal Polytechnic Ekowe, Bayelsa State, Nigeria
⁶MBA,BSC, CAN, Federal Polytechnic Ekowe, Bayelsa State, Nigeria
⁷MBA,BSC,PGD,CAN, Federal Polytechnic Ekowe, Bayelsa State, Nigeria

Abstract: This study examined the application of forensic accounting as a tool for fraud prevention in Nigerian deposit money banks. Ex-post facto research design was used as data was sourced from published annual report of Nigerian Deposit Insurance Corporation (NDIC) for the period covering 1994 to 2019. The population of this study is made up of all the twenty (20) listed deposit money banks in Nigerian Stock exchange. The entire population was used as sample size for the study. The study made use of Automated Teller Machine Related Fraud (ATMF), Web Based Fraud (WBF) and Foreign Currency Fraud (FCF) as independent variables, while dependent variable for the study was Forensic Accounting (FA). Time series analysis was conducted using Autoregressive Fractionally Integrated Moving Average (AFRIMA) Model, and analysis was conducted with the aid of STATA 14.2. The results revealed that forensic accounting have significant effect on all the variables used in the study, in the short run, however, on future prediction, the study predicts that forensic accounting will have no significant effect on fraud prevention based on evidence of increased fraud cases in the data collected from one period to the other. The study recommends amongst others that appropriate sanctions should be applied when fraud is detected. Where prosecution is considered to be the appropriate sanction, proper Forensic procedures need to be followed during investigation and trained experts like the Professional Forensic accounting.

Key words: Forensic Accounting, Fraud and Deposit Money Bank.

I. INTRODUCTION

Fraud is a universal financial word. Its occurrence or perpetration is not limited to Nigeria. The incidence of fraud in the Nigerian banking industry has assumed an alarming proportion of late (Uzoka, 2001). With the deregulation of the banking system in the early 1980s, the pace at which banks were established increased in an unprecedented manner. This development brought in its wake physical expansion and growth, both in structure and manpower.

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