Forensic Accounting Tools and Corporate Financial Reporting in Nigeria: A Review of Literature

Abstract

The quality of corporate financial reporting by companies has been an issue of public concern due to the steady rise in financial scandals and fraud in Nigeria. Despite research on this field, there still exist divergent opinions and conflicts of interest within the general public. This has resulted in increased academic interest in the application of forensic accounting tools and the desire for accountability, integrity, and transparency of corporate financial reporting. Besides, this topical issue has been researched extensively in developed economies. In contrast, a lack of studies in developing economies is evident. This paper, thus, analysed the impact of the tools of forensic accounting on corporate financial reporting in Nigeria. The main sources of secondary data were the peer-reviewed journal articles, financial records, reports of the forensic agencies, and records of the regulatory agencies. In addition, a desk study approach utilizing existing statistics and scholarly work based on qualitative and quantitative data between 2018 and 2025 was engaged. Using the results of previous studies, the application of forensic accounting tools (e.g., fraud investigation, forensic audit, data analytics, and litigation support) exhibited a significant positive impact on corporate financial reporting. In conclusion, forensic accounting tools, when integrated into corporate governance structures, are effective strategies for improving the quality of corporate financial reporting and enhancing stakeholder trust in Nigeria.