BACKGROUND TO THE STUDY
Business performance has increased over several years in the world and this performance is mainly measured in the terms of profitability. Businesses contain transactions which generate information for better analysis of business performance and forensic accounting is a delivery system for accounting. Banking industry are seen as a driving force for the promotion of large part of the economy (Khan and Jawaid, 2004) and they contribute immensely to the economic growth and development of any country.
With an upsurge in financial accounting fraud in the current economic scenario experienced, prevention and detection of fraud has become an emerging topic of great importance for academic, research and industries. In this age of high technology, fraud investigators can no longer be satisfied with just auditing or accounting skills, these investigators should be trained as forensic accountants and this training should include an extensive knowledge of accounting information systems (Bressler, 2006; Manning, 2005; Ramaswamy, 2005). The failure of internal auditing system of the organization in identifying the accounting frauds has led to use of specialized procedures to detect financial fraud, collective known as forensic accounting (Kranacher and Stern 2004).
The incidence of bankruptcy, fraud and solvency in major financial institution in Nigeria especially those quoted on the Nigeria Stock Exchange in recent time poses a threat accounting profession because of its perennial nature. This has resulted to unending questions as to whether forensic accounting actually play any significant role towards the attainment of accountability, transparency, ,prevention of insolvency and fraud, and increase in profit making ability of quoted banks especially that which is currently happening in our major or key financial institution and other corporate organizations in the recent case of Skye Bank.
According to AICPA (2004) Forensic Accounting is the application of accounting principles, theories and discipline to facts or hypothesis at issues in a legal dispute and encompasses every branch of accounting knowledge. Forensic accounting is the tripartite practice of utilizing accounting, auditing and investigative skills to assist in legal matters. It is the specialty practice area of accounting that describes engagements that result from actual or anticipated disputes or litigation.
The integration of accounting, auditing and investigative skills yield the specialty known as Forensic Accounting. Forensic Accounting provides an accounting analysis that is suitable to the court which forms the basis for discussion, debate and ultimately dispute resolution. It encompasses both litigation support and Investigative Accounting. It is a specially practiced area of accounting that describes engagement that result from actual or anticipated disputes or litigation.
Forensic Accounting is sufficiently thorough and complete so that an accountant, in his/her considered independent professional judgment, can deliver a finding as to accounts, inventories or the presentation thereof that is of such quality that it would be sustainable in some adversarial legal proceeding, or within some judicial or administrative reviews.
The increasing frauds, decline in financial performances, financial malpractices, solvency and other fraudulent activity cases in quoted business firms have placed forensic accounting issues as top concern for both the international community and policy makers (Jonathan et al., 2010). Forensic Accountants who also act as Liquidation Officers may be expected to report irregularities in company's accounts by enhancing transparency, accountability and developing techniques for it early detection and also proffers a way of preventing it occurrence.
The primary orientation of forensic accounting is explanatory analysis (cause and effect) of phenomena, including the discovery of deception (if any),
Ogunjimi, W (2019). IMPACT OF FORENSIC ACCOUNTING ON THE PROFITABILITY OF QUOTED BANK IN NIGERIA. Afribary.com: Retrieved December 03, 2020, from https://afribary.com/works/impact-of-forensic-accounting-on-the-profitability-of-quoted-bank-in-nigeria
Wasiu, Ogunjimi. "IMPACT OF FORENSIC ACCOUNTING ON THE PROFITABILITY OF QUOTED BANK IN NIGERIA" Afribary.com. Afribary.com, 29 Sep. 2019, https://afribary.com/works/impact-of-forensic-accounting-on-the-profitability-of-quoted-bank-in-nigeria . Accessed 03 Dec. 2020.
Wasiu, Ogunjimi. "IMPACT OF FORENSIC ACCOUNTING ON THE PROFITABILITY OF QUOTED BANK IN NIGERIA". Afribary.com, Afribary.com, 29 Sep. 2019. Web. 03 Dec. 2020. < https://afribary.com/works/impact-of-forensic-accounting-on-the-profitability-of-quoted-bank-in-nigeria >.
Wasiu, Ogunjimi. "IMPACT OF FORENSIC ACCOUNTING ON THE PROFITABILITY OF QUOTED BANK IN NIGERIA" Afribary.com (2019). Accessed December 03, 2020. https://afribary.com/works/impact-of-forensic-accounting-on-the-profitability-of-quoted-bank-in-nigeria