ASSESSING THE IMPACT OF FORENSIC AUDITING ON THE PERFORMANCE OF QUOTED BANKS IN NIGERIA
This study examines how forensic auditing influences bank performance in Nigeria, using annual data from 2013 to 2023. By applying the autoregressive distributed lag (ARDL) model and validating the results with fully modified ordinary least squares (FMOLS), the study provides a comprehensive analysis of forensic auditing's impact on the banking sector. The findings reveal that forensic auditing plays a crucial role in enhancing financial reporting accuracy, fraud detection, and risk management. By minimizing fraudulent activities and ensuring compliance with regulatory standards, forensic auditing fosters a more secure and efficient banking environment. Additionally, the study underscores its role in restoring stakeholder confidence, as greater transparency and accountability lead to increased trust in financial institutions. Banks that integrate forensic auditing are better positioned to detect irregularities early, mitigate risks, and improve overall operational efficiency and profitability. Given these insights, the study recommends that banks enhance their Anti-Money Laundering (AML) mechanisms by adopting stronger forensic auditing frameworks. This proactive approach can help identify and prevent money laundering activities, ultimately safeguarding the integrity of Nigeria’s financial system.
Forensic Auditing, Bank Performance, Quoted Banks.