Forensic Accounting and Fraud Mitigation in the Nigerian Banking Industry

Fraud is an economic and social menace with multiplier adverse consequences on individuals, organizations and the society at large. Hence, the Fraud Box key Model (FBKM) was used as one of the palliative measures to eradicating and proffering a permanent solution to this monster called fraud. The aim of this study was to ascertain the effectiveness of forensic accounting as a corporate governance tool in reducing fraud and improving internal control systems in the Banking Industry. A Likert scale questionnaire was designed and used as the research instrument for data generation from respondents. 120 questionnaires were administered to bankers in Benin City using the judgmental sampling technique. Data obtained were analyzed using Binomial test. Findings from the study revealed that forensic accounting aside significantly reducing fraud in the banking industry, has helped to improve considerably the internal control systems of banks. It was recommended that the regulatory agencies and shareholders should strictly enforce forensic accounting of banks and ensure that both internal control and internal audit staff embrace this emerging trend. Similarly, accounting professional bodies and academic institutions should provide the required specialized courses to ensure that forensic accounting personnel are adequately trained. Bank employees should be duly sensitize on the dangers inherent in fraud and the imperative of morals. Finally, stakeholders should cooperate to ensure a fraud free banking industry