Abstract:
In the wake of the increasing global trend of corporate collapses, this study explores the intersection of legal systems, forensic accounting, and whistleblowing policies as mechanisms for enhancing fraud detection in Nigeria's banking sector. The study specifically explores how systems assist in detecting financial misconduct among Deposit Money Banks (DMBs). The general objective was to investigate the synergy between whistleblowing and forensic accounting practice, as guided by current legal frameworks, and ascertain their joint effectiveness in unveiling corporate fraud in Nigeria's banking industry. The study adopted a survey research design in which structured questionnaires were administered to 83 forensic accountants practicing in Nigeria's DMBs. A census sampling technique was utilized to covered the entire population due to the small and specialized population. Quantitative data analysis, including correlation procedures, was utilized to determine the strength and statistical significance of the whistleblowing practices and forensic fraud investigation relationship. Findings shows that there is statistically significant correlation between whistleblowing activities and the effectiveness of forensic accounting in fraud detection at 5% level of significance (p < 0.05). Further, the study indicates the mandatory role played by good corporate governance, effective internal controls, and advanced forensic accounting techniques in facilitating fraud detection. The findings concluded that whistleblowing and forensic accounting supported by appropriate legal and institutional frameworks, are crucial for promoting transparency and financial integrity in the banking sector. Traditional accounting processes overlook financial malpractices, whereas forensic processes combined with protected whistleblower disclosures offer a better fraud detection mechanism. The study recommends the enactment and enforcement of robust whistleblower protection legislation with integration of emerging technology such as artificial intelligence, machine learning, and blockchain to speed up and enhance the precision of fraud detection in Nigerian banks should be established.
Keywords: Forensic Accounting, Whistle-blowing, Internal Control, Corporate Governance, and Auditor Independence.
DOI: 10.36349/zamijoh.2025.v04i01.012
author/Ali-Momoh, B.O., Akomolafe, O.S., Adeola, K.J., Ogunya, O., Adebayo, K., Bamigbola, B.T., Akomolafe, F.O. & Olubo, M.V.
journal/Zamfara IJOH Vol. 4, Issue 1
