THE IMPACT OF FORENSIC ACCOUNTING ON FRAUD MANAGEMENT IN NIGERIA

Abstract Financial fraud remains one of the most persistent threats to public sector accountability and economic development in Nigeria. Despite the presence of traditional auditing systems and anti-corruption agencies, cases of misappropriation, embezzlement, and procurement fraud continue to plague public institutions. This study examines the impact of forensic accounting on fraud management in Nigeria, with a specific focus on detection, prevention, and mitigation. The study was conducted within the Ondo State Internal Revenue Service (ODIRS), leveraging a descriptive survey design and primary data collected from a sample of 103 respondents using structured questionnaires. The study sought to: (i) determine the extent to which forensic accounting influences fraud detection; (ii) examine its effect on fraud prevention; and (iii) evaluate its impact on fraud mitigation. Data were analyzed using descriptive statistics and regression techniques. The findings at 5% significance, revealed that forensic accounting has a statistically significant positive effect on all three dimensions of fraud management—fraud detection (β = 0.589, t = 3.95, p=0.01 < 0.05), fraud prevention (β = 0.594, t = 3.56, p= 0.00 < 0.05), and fraud mitigation (β = 0.622, t = 3.68, p = 0.00 < 0.05). These results underscore the importance of integrating forensic accounting practices into public financial management frameworks to enhance transparency, accountability, and institutional resilience. The study concludes that forensic accounting serves as a vital tool in combating fraud and recommends its institutionalization across public sector agencies in Nigeria.