EFFECT OF FORENSIC AUDITING ON THE FINANCIAL PERFORMANCE OF QUOTED FOOD AND BEVERAGE FIRMS IN NIGERIA

EFFECT OF FORENSIC AUDITING ON THE FINANCIAL PERFORMANCE OF QUOTED FOOD AND BEVERAGE FIRMS IN NIGERIA
 
ABSTRACT
The aim of this study is to determine the effect of Forensic auditing on the financial performance of quoted food and beverage firms in Nigeria for the period of six years ranging from 2010 – 2016. The research design employed in this study is Ex-post facto research. An Ex-post facto research determines the cause-effect relationship among variables. Only secondary data was used in the study. The statistical tool used to test the hypothesis was STATA 13 statistical software, using coefficient of correlation which is a good measure of relationship between two variables. The study revealed that forensic auditing has a positive and statistically significant effect on ROA, ROE, and EPS of food and beverage firms quoted on the floor of Nigerian stock exchange at 5% level of significance. The researcher recommends that the management of food and beverage firms emphasize and enhance the use of forensic audit information as this will help in increasing the profitability. Secondly, appropriate sanctions should be applied when fraud is detected where prosecution is considered to be appropriate sanction, proper forensic audit procedures need to be followed during investigation and trained experts should conduct the investigation, where there is evidence of fraud, appropriate disciplinary action in accordance with public service rules should be implemented.