EFFECT OF FORENSIC ACCOUNTING IN THE DETECTING AND PREVENTING FRANUDULENT PRACTICE IN DEPOSIT MONEY BANKS IN NIGERIA. (CASE STUDY UBA MUBI BRANCH)

ABSTRACT Fraud remains a persistent challenge within Nigeria’s financial sector, undermining economic stability and public trust despite regulatory interventions. This study examines the impact of forensic accounting on fraud management in deposit money banks, focusing on UBA Plc, Mubi Branch, between 2021 and 2024. The objectives were threefold: to evaluate the effectiveness of forensic accounting in detecting fraudulent activities, to assess the role of forensic litigation in recovering misappropriated funds, and to determine the extent to which forensic practices reduce fraudulent acts. A descriptive and correlational research design was adopted, utilizing a purposive sample of 50 respondents comprising forensic accountants, internal auditors, and management staff. Data were collected through structured questionnaires, achieving a 90% response rate, and analyzed using descriptive statistics and chi-square tests. The findings reveal that forensic accounting is highly effective in detecting fraud, with 77.7% of respondents affirming its reliability, a result statistically confirmed (χ² = 30.43, p < 0.001). Forensic litigation significantly influenced fund recovery (χ² = 10.89, p = 0.028), though legal and procedural challenges limit its full effectiveness. Moreover, forensic accounting contributed substantially to fraud reduction, supported by 75.6% of respondents and validated by statistical evidence (χ² = 27.10, p < 0.001). The study concludes that forensic accounting strengthens internal controls, enhances fraud detection, and fosters transparency, thereby reducing financial crimes. It recommends continuous training, investment in forensic technologies, stronger collaboration with regulatory bodies, and improved legal frameworks to maximize its effectiveness in fraud management within Nigerian banks.