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The study sought to assess the effects of forensic accounting on financial performance of
listed firms in Nigeria. Specifically, the study assessed the effect of the forensic
investigation, fraud risk assessment, information and communication, control activities
and control environment on the performance of listed firms in Nigeria. Both primary and
secondary data was collected. Primary data was for Questionnaire feedback while
secondary data was extracted from audited financial reports of all the listed firms. The
research philosophy of the study is positivism. The study used a descriptive research
design with census methods being used. The study targeted all the all listed firms as unit
of analysis. Qualitative data was analyzed using content analysis with themes being
developed as per the responses obtained. Using SPSS, quantitative data was analyzed and
findings presented and organized in tables for easy understanding and this was in line with
the specific objectives. A multiple linear regression was used to determine the extent to
which each forensic accounting affects financial performance among listed firms in
Nigeria. The study established a significant positive relationship between control
activities and financial performance of listed firms as well as a positive and significant
relationship between forensic investigation and financial performance of the listed firms in
Nigeria. The Forensic litigation indicated a significant moderating effect on the
relationship between forensic investigation and financial performance of the listed firms.
The study therefore recommends that there is need therefore for the firms to ensure
suitable environment where forensic accounting are supported for the improved
performance of the firms.


1.1 Background to study
The point of view of accounting impact on today's general public will keep on being
brilliant as clients anticipate in data suppliers the need of maintaining the mainstays of
corporate administration; that is, responsibility, reasonableness, duty and
straightforwardness. The most recent couple of years have seen an awesome extension in
both intrigue and research in the behavioral and social parts of accounting, and there is
little uncertainty that this territory will be one of the expanding and imperative exercises in
the years ahead. Hopwood (2009). Under the new ideological standards of monetary
advancement power, marketization, and blended proprietorship made ready for an alternate
perspective of accounting to rise. Ezzamel, Xiao and Pan(2007).
Mindful of this pattern of accounting, and especially as it has been understood in all parts
of the world as taking out limits, a battle against debasement and worldwide
misrepresentation that consumes the interruption of the greater part of the creating nations,
accounting must be seen as experiencing another time, with its finished results helping with
the examination and handling of the culprits of extortion. Accepting that one considers
misrepresentation as the primary wellspring of human avarice and outright haughtiness of
the human instinct, and that it is additionally natural in the individuals who sustain it, never
mollified with what they have or continually exploiting an apparent absence of control,
Forensic accounting is viewed as one territory of these fields of accounting that is going to
get more noteworthy consideration in future exploration, be it sociological or humanistic methodology.

Due to the rapid changes in the socio-economic structures, modes of communication and
technology, there has been increased globalization (Sudti, 2008). Due to this, there has
been a translational growth of transactions and diversification of economic activities. These
developments and changes have therefore led to enormous opportunities for economic and
financial crimes, which have gained a global concern. Such events have necessitated the
need for forensic interventions hence the reason why forensic auditing and accounting are
gaining fast-paced precedence. This harsh global environment has also necessitated for a
great impact on the controls and procedures to be established by forensic accountants and
auditors in the conduct of the examination to detect, prevent and respond to such crimes
with fraud as a crime being at the forefront. Various measures have been put in place to
prevent and detect corporate crime in many organizations, but employees and external
fraudsters have not been deterred by this from taking part in fraud in organizations.
It can be said that forensic accountants exist mainly for the same reasons why prosecutors
and commercial branch investigators exist (Popoola, Ahmad, & Samsudin, 2014). This is
due to the presence and manifestation of criminals in the areas of fraud, white-collar crime,
corruption, money laundering, computer fraud, and theft (Popoola et al., 2014; Popoola,
Ahmad, Samsudin, & Yussof, 2013).
Such crimes have led to financial devastation of employers, investors and severely harmed
the reputation of auditors, analysts and managers. It is in realization of this that various
initiatives have been put in place to enhance and enforce the applicability of forensic
accounting services by use of the right people, tools, techniques and insight to prevent and
detect fraudulent activities and to ensure that the applicability of such services are effective

(Omondi, 2013). According to KPMG Forensic Survey (2012), over the last 15 years fraud
has continued to rise in corporate Australia and New Zealand despite enhanced risk
mitigation from $105 million in 1997 to $373 million in 2012. The figure in 2012
represents an average loss of $3.08 million per organization for the organizations surveyed,
thus showing the extent of fraud prevalence.
Due to this, the study will focus on the effects of forensic accounting on organisational
performance among listed firms in the Nigerian Stock Exchange (NSE). Previous
theoretical evidence leads to a prediction that the application of forensic accounting helps
to improve firms financial performance.
1.2 History Development of the concept of Forensic Accounting


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