THE ROLE OF FORENSIC ACCOUNTING IN REDUCING CORRUPTION IN THE PUBLIC SECTOR OF LISTED DEPOSIT BANKS

Abstract This study examines the role of forensic accounting in reducing corruption within the public sector of listed deposit banks in Nigeria. Corruption poses a significant threat to the integrity and financial stability of banking institutions, affecting public trust, economic development, and institutional accountability. Forensic accounting, an investigative technique combining accounting, auditing, and investigative skills, has emerged as a critical tool for detecting, preventing, and addressing fraudulent practices within organizations. The study employs a descriptive research design, utilizing both primary and secondary data to analyze how forensic accounting practices—such as fraud risk assessment, data mining, financial analysis, and digital forensics—contribute to corruption reduction within listed deposit banks. Findings reveal that forensic accounting significantly reduces corruption by addressing the “opportunity” element in the Fraud Triangle Theory, thereby mitigating fraud risk within banking institutions. Statistical analyses indicate a strong correlation between forensic accounting practices and reduced corruption levels, affirming the technique’s effectiveness in fostering transparency and enhancing accountability. The study also explores the extent to which listed banks in Nigeria have adopted forensic accounting and the challenges they face in implementation. The research concludes that adopting forensic accounting practices can greatly enhance anti-corruption frameworks in Nigeria’s banking sector, contributing to increased stakeholder confidence and improved regulatory compliance. Recommendations include enhanced training for forensic accountants, regular fraud risk assessments, and collaboration with regulatory bodies to strengthen anti-corruption measures across the sector. This study contributes to the growing body of knowledge on forensic accounting, providing insights for policymakers, banking institutions, and stakeholders committed to combating corruption in the public sector.