Effect of Forensic Accounting Techniques on Financial Statement Fraud in Microfinance Banks in Nigeria

Financial statement fraud threatens confidence in Nigeria's microfinance banking sector. Anchored on the fraud diamond theory, this study examined the effects of anonymous communication, ratio analysis, inspection and observation, and fraud risk assessment. A cross-sectional survey of 225 professionals across Nigeria's six geopolitical zones yielded 222 usable responses. Regression results showed a significant inverse relationship between the techniques and fraud (Ra = .583; adjusted = .575; p < .001). The study concludes that forensic accounting techniques materially constrain fraudulent reporting and recommends their formal integration into microfinance banks' enterprise-risk, audit, and supervisory frameworks.