Asian Research Journal of Current Science

This study examines the effect of forensic accounting practice and environmental fraud risk in Ondo State MDAs in combating environmental fraud and enhancing quality corporate financial reporting. A survey research design was adopted for the study, because data were gathered from primary sources through structured questionnaire surveys to obtain information from respondents. The study population comprised 130 staff employed in the State Ministries Department and Agencies, specifically the Ondo State Ministry of Finance, Budget, and Economic Planning. The study sample comprises 80 accountants in Ondo State Ministry of Finance, Budget, and Economic Planning using Purposive Sampling Technique to selects staff who are professionally certified and possess experience in forensic accounting and financial reporting. The findings reveal that fraud detection has a significant and positive impact on curbing environmental fraud (β = 0.784, p < 0.000), validating its role in promoting transparency and credibility. However, fraud prevention policies have a weak and insignificant influence (β = 0.019, p = 0.891), indicating the need to modify the strategic direction. The current study's findings concluded that fraud detection significantly enhances environmental fraud risk and fraud detection because effective fraud detection mechanisms bolster the credibility and transparency of financial reports. Conversely, fraud deterrence demonstrates a weak and insignificant correlation with environmental fraud, suggesting that existing preventive measures are either ineffective or poorly implemented in improving corporate financial reporting. The study recommended that preventative measures should be place on MDAs to minimal effectiveness usage of government resource; and regular forensic audits should be implemented to identify discrepancies promptly, fostering a sense of trust for individuals relying on corporate disclosures.