Asian Journal of Economics, Finance and Management

Fundamentally, deposit money banks derive their operations based on degree of integrity in their accounts, correctness and clear reporting that aids in boosting confidence of investors and the general public. This study looks at the apparent influence of forensic accounting techniques on the performance of the publicly listed Deposit Money Banks (DMBs) in Nigeria, and it applies the mixed methodological approach where survey and ex post facto strategies are applied. Data were gathered by administering structured questionnaires to 50 professional accountants working in banks in the capitals of Ondo and Ekiti States employing the stratified and census sampling methods. Regression analysis was employed to investigate the relationship between forensic accounting measures comprising forensic accounting procedures, reliability of reporting, detection of fraud, and forensic accounting methodologies and the performance of banks. The results show that forensic accounting practices have a substantial positive effect on bank performance (p = 0.0390), while other variables produced positive but statistically insignificant effects. The outcome of this study shows that the forensic accounting methods largely positively enhance bank performance. Banks should consider investing in forensic tools and training, infuse forensic processes into their operations, while regulatory agencies in the banking sector should encourage and support the development of forensic capacities in the rest of the industry for increased financial performance and fraud deterrence.