Effect of Forensic Accounting Techniques on Financial Statement Fraud in Microfinance Banks in Nigeria

Authors

• Ajewole Oluwasola Dada, Central Bank of NigeriaFollow
• Professor Adeoye A. Afolabi, Kwara State University

Keywords

Accounting techniques, fraud theory, sustainability, microfinance banks; fraud diamond; Nigeria

Abstract

Financial statement fraud threatens confidence in Nigeria's microfinance banking sector. Anchored on the fraud diamond theory, this study examined the effects of anonymous communication, ratio analysis, inspection and observation, and fraud risk assessment. A cross-sectional survey of 225 professionals across Nigeria's six geopolitical zones yielded 222 usable responses. Regression results showed a significant inverse relationship between the techniques and fraud (Ra = .583; adjusted = .575; p < .001). The study concludes that forensic accounting techniques materially constrain fraudulent reporting and recommends their formal integration into microfinance banks' enterprise-risk, audit, and supervisory frameworks.

Author Bio

Professor Adeoye Amuda Afolabi, a chartered accountant and Professor of Accounting at Kwara State University, is a teacher, researcher, mentor, and community servant. He teaches undergraduate and postgraduate students, supervises master's and doctoral research, serves as an external examiner for African and European universities, and publishes in peer- reviewed journals. Oluwasola Dada Ajewole, a CBN Deputy Director with over 23 years of experience, heads the Development and Finance Institutions Division. His interests include sustainability, governance, supervision, compliance, community service, mentoring, and coaching. A former adjunct lecturer, he has taught CBN bank examiners for Over 12 years and presented at international fora

Publication Title

Bullion

Issue

3

Volume

50

First Page

77

Last Page

84

Recommended Citation

Dada, Ajewole Oluwasola and Afolabi, Professor Adeoye A. (2026) "Effect of Forensic Accounting Techniques on Financial Statement Fraud in Microfinance Banks in Nigeria," Bullion: Vol. 50: No. 3, Article 6.
DOI: https://doi.org/10.33429/0331-7919.1654
Available at: https://dc.cbn.gov.ng/bullion/vol50/iss3/6