Impact of Forensic Accounting Techniques on Fraud Detection in Nigeria: a Moderating Role of Artificial Intelligence

ABSTRACT This study investigates the impact of forensic accounting techniques on fraud detection in Nigeria, with a particular focus on the moderating role of artificial intelligence (AI). Using a descriptive survey design, data was collected from 158 audit firms in Abuja through structured questionnaires. The population comprised 310 audit firms in Abuja, from which a sample size of 175 was determined using Yamane's formula. Simple random sampling was employed to ensure equal representation, with 90.2% response rate achieved. The study utilized both descriptive and inferential statistics, employing SPSS version 20 for analysis. The study employed multiple regression analysis to examine the effects of data mining techniques, trend analysis techniques, and financial ratio analysis techniques on fraud detection, while also exploring how AI integration moderates these relationships. The findings revealed that data mining techniques have a significant positive impact on fraud detection, while trend analysis techniques showed an unexpectedly significant negative relationship, and financial ratio analysis techniques demonstrated a negative but insignificant impact. Notably, the integration of AI was found to significantly and positively moderate the relationship between forensic accounting and fraud detection. The study concludes that while data mining and AI integration demonstrate clear benefits for fraud detection, traditional techniques like trend analysis and financial ratio analysis may need refinement in the Nigerian context. These findings have important implications for the development of more effective fraud detection strategies in Nigeria's financial sector, particularly emphasizing the potential of AI-enhanced forensic accounting methods. The study recommends increased investment in AI and data mining capabilities, alongside careful reconsideration of how traditional forensic accounting techniques are implemented in the Nigerian context.