EFFECT OF FORENSIC ACCOUNTING ON THE FINANCIAL PERFORMANCE OF DEPOSIT MONEY BANK IN NIGERIA (CASE STUDY CASE STUDY OF FIRST BANK PLC)

The study examined the effect of forensic accounting on financial performance of Deposit Money Banks (DMBS) in Nigeria, between 2014 and 2023. Specifically, the study examined the effect of risk assessment, legal service, monitoring and control on profit after tax of listed deposit money banks in Nigeria. The data for this study were obtained from secondary source. Data were collated from a sampled of some banks’ annual financial reports and analyzed using both descriptive statistics and VEC model granger-causality test. The study revealed that risk assessment, legal service, monitoring and control have significant effect on profit after tax of listed deposit money banks in Nigeria. Based on this finding, the study concluded that, forensic accounting has significant effect on financial performance of listed deposit money banks in Nigeria, especial when measured financial performance in terms of profit after tax. The study further established that all the variables have significant effect on profit after tax of deposit money banks in Nigeria. Since risk assessment, legal service, monitoring and control has significant effect on profit after tax of listed deposit money banks in Nigeria, therefore it was recommended that management of listed deposit money banks should develop a mechanism that can enhance forensic accounting in banking industry. Also, the management of deposit money banks should organize training programme on forensic accounting for the accountants to undergo to refresh their knowledge on the investigative aspect so that they can be in position to offer sound advice that can be useful to banks.