Forensic Accounting Techniques and Fraud Detection in Commercial Banks

Abstract

This study evaluates the application of forensic accounting techniques — Benford's law analysis, ratio red flags and data mining — in detecting and preventing fraud in commercial banks. It reviews documented fraud cases, interviews internal auditors, and tests how earlier application of forensic techniques would have changed outcomes. The study is organised into five chapters covering the introduction, review of related literature, research methodology, data presentation and analysis, and the summary, conclusion and recommendations.

Table of Contents

Chapter One: Introduction

1.1 Background to the Study

This study evaluates the application of forensic accounting techniques — Benford's law analysis, ratio red flags and data mining — in detecting and preventing fraud in commercial banks. It reviews documented fraud cases, interviews internal auditors, and tests how earlier application of forensic techniques would have changed outcomes.

1.2 Statement of the Problem

Evaluates how forensic accounting techniques help detect and prevent fraud in commercial banks. Existing approaches remain limited in reach, accuracy and ease of use, which creates the gap this study addresses.

1.3 Aim and Objectives

The aim of this study is to forensic accounting techniques and fraud detection in commercial banks. The specific objectives are to:

1. review existing literature and systems related to the study;
2. collect and analyse data using Case study;
3. evaluate the results against the stated problem;
4. make recommendations for practice and further research.

1.4 Scope of the Study

Introduction: background to forensic accounting in banking, statement of the problem (bank fraud keeps evolving faster than traditional statutory audits can detect it), aim and objectives, research questions, scope, significance of the study, and definition of terms.