COMBATING FINANCIAL FRAUDS THROUGH FORENSIC AUDIT AND CORPORATE GOVERNANCE
This study investigates combating financial fraud through forensic auditing and corporate governance mechanisms among quoted deposit money banks (DMBs) in Nigeria, focusing on Access Bank, GTB, First Bank, UBA, Zenith Bank, Union Bank, and FCMB. The study aims to (i) determine if the presence of an internal control system can prevent financial fraud, (ii) ascertain the extent to which governance mechanisms prescribed by the Code of Corporate Governance 2014 aid in combating fraud, and (iii) evaluate the role of forensic audit units in preventing fraud in DMBs. A quantitative descriptive survey research design was adopted, employing structured questionnaires to collect primary data from 70 senior staff members across the selected banks in Ado-Ekiti. Convenience sampling ensured the inclusion of critical personnel like branch operating managers, compliance officers, and auditors. Data were analyzed using descriptive and inferential statistical methods, including regression analysis and ANOVA, with SPSS software facilitating precision and reliability. The findings underscore the critical role of internal control systems, governance mechanisms, and forensic audit units in mitigating fraud risks. Internal controls demonstrated a strong correlation with fraud prevention, while governance mechanisms outlined in the Code of Corporate Governance 2014 emerged as instrumental in promoting accountability and ethical practices. Forensic audit units were also highlighted as essential for detecting and addressing fraudulent activities. The study concludes that an integrated approach leveraging robust internal controls, adherence to governance standards, and specialized forensic auditing significantly enhances fraud prevention in Nigerian DMBs. Recommendations include strengthening internal control frameworks through advanced technologies and training, enhancing corporate governance by adhering strictly to the prescribed code, and investing in dedicated forensic audit units equipped with modern tools and expertise. By adopting these strategies, DMBs can safeguard financial integrity and mitigate fraud risks effectively.
Financial Fraud, Forensic Audit, Corporate Governance, DMBs.