Forensic Accounting and the Prevention of Fraud in Nigeria Firms

This study investigates the impact of forensic accounting on the prevention of fraud in Nigerian
firms, with a specific focus on selected companies listed on the Nigerian Exchange Group (NEX).
The study aims to determine how forensic accounting surveillance, forensic audit and
investigation skills, and computer-assisted review and document review techniques influence
fraud prevention within organizations. Employing an ex-post facto research design, secondary
data were collected from the annual reports of selected firms covering the period 2019–2023.
The data were analyzed using descriptive statistics, correlation analysis, and multiple regression
via STATA software. Findings revealed that financial accounting surveillance and forensic audit,
investigation, and deterrence skills have a significant positive relationship with fraud prevention,
implying that these practices play vital roles in detecting and reducing fraudulent activities.
Conversely, computer-assisted review and document review skills exhibited a positive but
statistically insignificant effect on fraud prevention. The results indicate that effective
application of forensic accounting tools significantly enhances corporate transparency,
accountability, and fraud deterrence. The study concludes that forensic accounting remains a
vital mechanism for combating financial crimes in Nigeria. It recommends that organizations
should institutionalize forensic auditing procedures, strengthen financial surveillance systems,
and regularly train accounting personnel in investigative and deterrence skills. Such measures
will improve fraud prevention frameworks and promote ethical financial reporting in both public
and private sectors.