Accounting Project Topics

Impact of Forensic Accounting on Financial Fraud Detection in Deposit Money Banks in Nigeria(a Case Study of Uba Bank)

Impact of Forensic Accounting on Financial Fraud Detection in Deposit Money Banks in Nigeria(a Case Study of Uba Bank)

Impact of Forensic Accounting on Financial Fraud Detection in Deposit Money Banks in Nigeria(a Case Study of Uba Bank)



The broad objective of this study is to assess the Impact of Forensic Accounting on Financial Fraud Detection in Deposit Money Banks in Nigeria(A case study of UBA Bank. The specific objectives are:

  1. To examine the effectiveness of forensic accounting in fraud detection and prevention.
  2. To assess the effect of forensic litigation on recovery of funds lost to fraud.
  3. To investigate the extent to which forensic accounting have reduced fraudulent acts in Nigeria.





Our focus in this chapter is to critically examine relevant literatures that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.

Precisely, the chapter will be considered in four sub-headings:

  • Conceptual Framework
  • Theoretical Framework
  • Empirical Review
  • Chapter Summary



Black (1979) defines fraud as all multifarious means which human ingenuity can devise, and which are resorted to by one individual to get an advantage over another by false suggestions or suppression of the truth. It includes all surprises, tricks, cunning or dissembling, and any unfair way which another is cheated. Under common law, three elements are required to prove fraud; a material false statement made with intent to deceive (scanter), a victim’s reliance on the statement and damages. The criminal code section 380 sub-section one stated that everyone who, by deceit, falsehood or other fraudulent means, whether or not it is a false pretence with the meaning of this Act, defrauds the public or any person, whether ascertained or not, of any property, money or valuable security or any service. This means that fraud is criminal deception intended to financially benefit the deceiver. Edelherz-et al (1977) defines fraud as an illegal act or series of illegal acts committed by nonphysical means and by concealment or guide to obtain money or property, to avoid the payment or loss of money or property, or to obtain business or personal advantage. Also Webster’s collegiate dictionary of current English defines fraud as deceit, trickery, specifically; intentionally perversion of truth in order to induce another to part with something of value or to surrender a legal right. Fraud is a feature of every organized culture in the world. It is a significant and growing threat to organizations. Regardless of its size, location of industry (Golden, Skalak, & Clayton, 2006). Fraud is an activity that takes place in a social setting and has severe social consequences for the economy, corporation, and individuals. Sociologists are of the opinion that some middle-range theories of fraud in Nigeria include family members-Nuclear, relative, patterns of friendship and social networks made up of friends and friends of members of social systems to which a particular individual belongs. The cultural transmission theory formulated by Sutherland (1949) holds that deviant behaviour, like non-deviant behaviour, and the norms of conduct and cultural belief are products of society, that are learnt by people as members of a society or social groups in the society. With specific reference to the violations of criminal law, the theory holds that a person becomes criminal if he is exposed  more frequently and for a prolonged period of time to expressions of views and attitudes favourable to criminal activities than views and attitudes unfavourable to such activities. Interaction process theory of deviant behaviour or trust violation involves a non-shareable financial problem; knowledge of how to violate; and rationalizations about the violations. Non-shareable financial problems include business failure through an unsuccessful gamble or speculation and important socio obligations such as emergency expenditure which involve the persons social status. Those who violate trust believe that they can resolve these problems secretly by violating their positions of trust, and they are confident that they have the knowledge of the technique to do so. They rationalize their behaviour not as trust violation but they were “only borrowing” and hope to pay back but something then happens which makes it impossible for them to refund what they were only borrowing. Trust violations are usually put in the position they violate precisely and they were regarded as trustworthy with other people’s money or property. The classic application of the interaction process theory of deviant behaviour is that by Gressey (1959).





The UBA bank headquarters in FCT Abuja is the area of this study.


Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled.


According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.

This study was carried out to examine the Impact of Forensic Accounting on Financial Fraud Detection in Deposit Money Banks in Nigeria(A case study of UBA Bank. Hence all the staffs of UBA bank form the population of the study.




This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of forty two (42) questionnaires were administered to respondents of which only thirty (30) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of  30 was validated for the analysis.




This chapter summarizes the findings into the Impact of Forensic Accounting on Financial Fraud Detection in Deposit Money Banks in Nigeria(A case study of UBA Bank. The chapter consists of summary of the study, conclusions, and recommendations.

 Summary of the Study

In this study, our focus was to examine assess the effect of forensic accounting on fraud management in Nigeria. The study specifically was aimed at examining the effectiveness of forensic accounting in fraud detection and prevention; assess the effect of forensic litigation on recovery of funds lost to fraud and investigate the extent to which forensic accounting have reduced fraudulent acts in Nigeria.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 30 responses were validated from the enrolled participants where all respondent are active staffs of UBA bank.

The findings of the study discloses that;

The effectiveness of forensic accounting in fraud detection and prevention in Nigeria is practically low.

Forensic litigation has a positive effect on the recovery of funds lost to fraud.

The extent to which Forensic accounting reduces fraudulent occurrence in Nigeria is unpalatably low.


With the increase rise in financial accounting fraud in the current economic scenario experienced, financial accounting fraud detection has become an emerging issue of great importance for academic, research and industries. Forensic accounting is an effective tool in uncovering diverted fraudulent practices and can identify misappropriated asset and reversible insider transactions; this significantly influences fraud detection and control. Fraudulent practices are real and have become prevalent in contemporary business environment. From the findings, we conclude that despite the poor performance of forensic accounting in Nigeria, there is still need to enhance its field by training the accountants as much as to the level of being exposed and acquainted enough with the most effective technological products that will will tighten and strengthen forensic accounting in Nigeria than depending on outdated methods.


The Nigeria Government and managements of businesses and non business organizations should improvise the necessary equipment, software and other technological products that will assists accountants in fraud detection and prevention. More so, most practice and kills used by accountants in Nigeria are stalled or out of date with trending skill and effective skills therefore organizations should also establish training opportunities for the accountants to enable them get acquainted with more effective skills.


  • Abdulrahman, S. (2019). Forensic accounting and fraud prevention in Nigerian public sector: A conceptual paper. International Journal of Accounting & Finance Review, 4 (2), 13-21.
  • Adebisi, J. F.; Okike, B. M. & Yoko, V. E. (2016). The impact of forensic accounting in fraud detection and prevention: evidence from Nigerian public sector, International Journal of Business Marketing and Management, 1(5), Pp.34-41
  • Apostolou, B., Hassell, J.M., & Webber, S.A. (2000). Forensic expert classification of management fraud risk factors. Journal of Forensic Accounting, 1, 181-192.
  • Arzova, S. B. (2003) Isletmelerde Calisanlar Tarafindan Yapilan Hilelerin Kirmizi Bayraklar Yoluyla Izlenmesi. MUFAD Dergisi, Avciol Press, vol 20, October 2003
  • Association of Certified Fraud Examiners (ACFE) (2010). Fraud Examiners Manual (Intentional) Association of Certified Fraud Examiners (ACFE). London: McGraw Publishers.
  • Bassey, E. B. (2018). Effect of forensic accounting on the management of fraud in microfinance institutions in Cross River State. IOSR Journal of Economics and Finance, 9 (4), 79-89
  • Carnes, K.C. & Gierlasinski, N. J. (2001). Forensic accounting skills: Will supply finally catch up to demand? Managerial Auditing Journal, 16(6), 378-381
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