Forensic accounting: A moderator to fraud risk factors in the Nigerian deposit money banks

Abstract

The primary role of the forensic accountant/examiners is the depending fraudulent litigations before a competent court of jurisdictions. In addition the forensic accounting index sore (FAIS)if followed strictly will of no doubt prevent financial malpractices in the Deposit Money Banks (DMBs) listed in Nigeria. The main objective of this study is to investigate the moderating role of forensic accounting on the fraud risk factors and fraud in The Deposit Money Banks (DMBs) listed in Nigeria. The study employed export factor and correlation research design in a sample of 14 banks for a period of ten years (2006-2015). Using ordinary least squares (OLS) multiple regression technique of analysis after correcting for heteroskedasticity, it was found that financial stability and nature of industry are positively impacting on the fraud in the DMBs listed in Nigeria after moderating with the forensic accounting, the moderation of external pressure and ineffective monitoring by the forensic accounting reveals a negative significant influence on fraud in the Deposit Money Banks (DMBs) listed in Nigeria. The study recommended that, the management and the board of the Deposit Money Banks (DMBs) listed in Nigeria should use continually forensic accounting examiners (expert) in order to prevent and detect fraudulent financial malpractices as caused by the  six explanatory variables used in this study.