IMPACT OF FORENSIC ACCOUNTING ON THE PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA

Abstract

The study examined the impact of forensic accounting on the profitability of commercial banks in Nigeria. The data were gathered from a sample of Guaranty Trust Bank and Access Bank Plc’s annual reports and accounts for (5) five years (2017-2021). The research work made use of multiple regression per share (DPS method. Forensic audit (FAUD) was used as proxy for forensic accounting and the variables, net profit margin (NPM), Profit after tax (PAT) and dividend per share using multiple regression technique, E-view 9.0 software package was used as a tool for data analysis. The result of the analysis shows that forensic audit has a significant effect on the net profit margin of selected Nigerian commercial banks banks. It was also observed that forensic audit influenced profit after tax of Nigerian banks. The study also revealed that forensic audit has a significant effect on retained earnings and also dividend per share of Nigerian banks. Based on the findings of this study, the researcher recommends that the management of commercial banks should emphasize and enhance the use of forensic financial information as this will help in increasing profitability.