BUSINESS AND FINANCE JOURNAL

FORENSIC ACCOUNTING AND FRAUD DETECTION IN A MICROFINANCE BANK IN OSUN STATE, NIGERIA

ABIMBOLA TOLULOPE DUNSIN, ADETUNJI ABDUL-AZEEZ ADEREMI (PhD), & ELIZABETH ODUNTAYO ADEOYE
March 4, 2025

Abstract

The study examined the influence of forensic accounting on fraud detection and prevention in microfinance banks in Osun State,Nigeria. Descriptive survey research design was adopted for the study. A total number of 378 staff of fifteen microfinance banks, in Osun State represents the population, however, the study sampled 300 staff using purposive sampling method. Questionnaire were used to gather the data for the study, Data were analysed using tabular simple percentage while regression analysis was employed for inferential statistics analysis.Results of the findings,revealed  that forensic accounting practices (digital forensics and document examination forensics) have positive and significant influence on fraud detection and prevesntion in microfinance banks in Osun State,Nigeria. Rusult further revealed that forensic accounting practices are key enablers of detecting and preventing fraud in microfinance banks in Osun State. The study concluded that forensic accounting techniques are critical enablers of detecting and preventing fraud committed by the microfinance banks in Osun State. Finally the study recommended that microfinance institutions in Osun State should leverage litigation support in order to detect and prevent fraud, as this method facilitates the discovery of anomalies through document analysis, hence assisting in fraud detection and prevention.The study furthers recommended that microfinance banks should employ digital forensics as part of their fraud investigations and as a continuous process rather than as a time-limited exercise.

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BUSINESS AND FINANCE JOURNAL

Published in BUSINESS AND FINANCE JOURNAL

ISSN: 988-47878

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