Asian Research Journal of Current Science

Today, there is a lack of empirical evidence on the impact of forensic accounting techniques on the financial performance of deposit money banks (DMBs) in Nigeria, particularly with processes, reporting trustworthiness, and fraud detection capabilities. The study examines the relationship between forensic accounting and deposit money banks (DMBs) in Nigeria using a survey and ex post facto designs of mixed-method research. Questionnaires were administered to 50 practicing accountants currently working in the banking sector in the state capitals of Ondo and Ekiti States, who were chosen using stratified and census sampling methods. The study aimed to establish the impact of forensic accounting processes, techniques, the trustworthiness of reports, and fraud detection on banking performance. The main finding of the study revealed that forensic accounting processes have a statistically significant positive impact on bank performance. The result of regression analysis confirms the relationship as significant with F- F-statistic of 6.30, which is significant at the 5% level, confirming that as forensic accounting variables have an impact on the bank’s performance. The study concluded that forensic accounting processes had a statistically significant positive impact while other factors such as forensic practices, reporting reliability, and fraud detection among others, had a positive impact but were not statistically significant. The recommended that forensic accounting procedures are indeed a key factor in enhancing the financial performance of DMBs. The study then recommended that better forensic accounting devices and training with mainstreaming forensic practices be put into routine reporting, and regulatory bodies should enabling the standardization and skill-sets development of forensic accounting in the Nigerian banking industry.