ABSTRACT
This study examines forensic audit and fraud prevention in the banking sector, focusing on factors such as, forensic audit practices, forensic audit methodologies and application of forensic audit practices in fraud prevention. The research targets employees of money deposit banks located in Benin City, Edo State, with a total population of 200 employees. A sample size of 200 employees is determined to ensure a representative dataset.
A cross-sectional study design method is employed to comprehensively examine the target population, allowing for the collection of data from various segments and facilitating the exploration of trends and correlation. Data analysis is conducted using Pearson correlation and ordinary least square regression in order to show the results of the descriptive statistics.
The findings reveal significant relationship between forensic audit and fraud prevention in the banking sector. Forensic audit practices, forensic audit methodologies and the application of forensic audit practices in the banking sector are identified as critical determinants influencing fraud prevention in the banking sector.
This study recommends that banks should establish a dedicated forensic audit unit to proactively identify and investigate fraudulent activities, ensuring timely detection and response. Also they should ensure that regular forensic audit practices should be integrated into the internal audit process to identify vulnerabilities and strengthen internal controls.
Lastly, banks should prioritize fraud risk assessment and management, using data analytics and machine learning to enhance fraud detection and prevention capabilities.
