FORENSIC AUDITING AS A TOOL TOWARDS PREVENTION OF FINANCIAL FRAUD IN THE NIGERIA PUBLIC SECTOR ORGANIZATION

The persistent occurrence of financial fraud in the Nigerian public sector has continued to undermine accountability, transparency, and good governance, posing serious threats to public trust and national development. This study investigates the effectiveness of forensic auditing as a tool for preventing financial fraud in public sector organizations in Nigeria. Forensic auditing, a specialized field that combines auditing, accounting, and investigative techniques, has emerged as a strategic approach to detect, prevent, and prosecute fraudulent activities within public financial systems. The study is anchored on the Fraud Triangle Theory and White-Collar Crime Theory, providing a theoretical framework that explains why individuals in public service commit fraud and how forensic auditing can serve as a deterrent. Using a survey research design, data were collected through structured questionnaires administered to forensic auditors, accountants, internal auditors, and anti-graft agency officials across selected federal ministries, departments, and agencies (MDAs). The data were analyzed using descriptive statistics and regression analysis to examine the relationship between the application of forensic auditing techniques and the prevention of financial fraud. Findings from the study reveal a significant positive correlation between the adoption of forensic auditing practices—such as litigation support, investigative accounting, and digital evidence analysis—and the reduction of fraudulent practices in the public sector. The study also identifies institutional weaknesses, inadequate legal frameworks, and poor professional training as key barriers to the effective implementation of forensic auditing.