Impact of Auditing on Fraud Prevention and Detection in Listed Deposit Money Banks in Nigeria

Student: Mahmud Tijjani Ahmed (Project, 2025)
Department of Accounting
Umaru Musa Yaradua University, Katsina, Katsina State

Abstract

This study examines the impact of auditing on fraud prevention and detection in listed deposit money banks in Nigeria. In recent years, the Nigerian banking sector has faced recurring issues of financial irregularities, weak internal controls, and poor compliance practices, underscoring the importance of effective auditing mechanisms. The research aims to assess how key auditing components such as environmental controls, risk assessment, information and communication systems, and continuous monitoring contribute to curbing fraudulent activities. Data were obtained from selected listed banks using structured questionnaires and analyzed through statistical tools to test the stated hypotheses. Findings reveal that effective auditing practices significantly enhance the ability of banks to prevent and detect fraud by strengthening internal control systems and ensuring compliance with regulatory standards. The study concludes that regular, independent, and comprehensive audits remain vital to maintaining transparency, investor confidence, and financial stability within Nigeria’s banking industry. It recommends that banks intensify their audit processes and adopt modern audit technologies to improve fraud detection and prevention.

Keywords
impact auditing fraud prevention detection listed deposit money banks nigeria
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