The Role of Forensic Accounting and Quality Assurance in Financial Reporting in Selected Commercial Banks in Nigeria

Abstract

This study examines the effectiveness of Forensic accounting in enhancing
qualitative financial reporting in Nigeria using the commercial banking sector
as a reference. The study adopts survey and descriptive approaches as its research design. Secondary data for this study were sourced from the annual reports of the chosen commercial banks. Simple five scale binomial ranging from 0.4 were used to analyse the secondary data (financial reporting quality) of the selected banks. Primary data were also sourced to elicit information from accountants using a five scale Likert structured questionnaire which were administered to a sample size of Two Hundred and fifty respondents. Respondents were chosen by simple stratification. Pearson’s correlation coefficient statistical tool was used to analyse the primary data. The study reveals among others that the fundamental qualitative characteristics (relevance and faithful representation) of financial reporting, accounting and the enhancing qualitative characteristics (understandability) can be significantly enhanced through forensic accounting. Therefore, it is proposed along side other things that the financial regulators and commercial banks in Nigeria should also train and re-train their members on the intricacies of forensic accounting to enhance the utility capital providers and other stakeholders derive from financial reporting in Nigeria.