FORENSIC AUDITING: A TOOL FOR DETECTING FRAUD

Abstract

This research explores forensic auditing as a specialized tool for detecting and preventing financial fraud in both public and private sectors. Using a qualitative methodology and documentary analysis, the study synthesizes information from a wide range of scientific literature and academic research to build a state-of-the-art framework of forensic auditing's foundational principles. The core aim is to highlight how skilled forensic auditors impact judicial outcomes by providing expert opinions and evidence, thereby enabling more certain justice. The article establishes that corruption and economic crimes, particularly in public resource management, are a growing global concern. Forensic auditing is presented as a vital alternative to traditional auditing, uniquely positioned to uncover hidden financial irregularities. The research also examines the Nigerian context, outlining the legal and institutional framework including agencies like the EFCC and ICPC that combats financial crimes. The findings emphasize that despite these efforts, effective fraud prevention requires not only a robust legal structure but also the implementation of strong internal controls based on the Fraud Triangle model. Ultimately, the study concludes that highly qualified forensic auditors are essential for fighting corruption and preventing impunity by identifying perpetrators and providing the necessary evidence for legal proceedings.