Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Ensuring Accountability in the Financial Statements of Nigerian Banks: the Irrational Ratios Approach

Author(s): Samuel Olusola Faboyede, Enyi P. Enyi, Dick O. Mukoro, Egbide Ben-Caleb, Adegbola Otekunrin, Olajumoke Ogunniyi, Olabamiji Atanda, Lookman Ajetunmobi

The subject matter of high profile cases of financial statement fraud has been dominating the world in recent years. This has caused people to question the integrity of the financial information made available by business organizations. In Nigeria, there has been determined efforts to sustain a credible financial reporting regime. This paper uses the secondary data analysis methodology by engaging the irrational ratios research approach of Beneish analytical model to analyze the financial statements of some Nigerian Banks over a period of eight years. It found out that there was the existence of an inherent risk of Financial Statement Fraud in the Nigerian Banking Sector organizations. It therefore recommends that the way of continuous prevention, detection, and corrective mechanisms is the most effective way to tackle the challenge of potential financial statement fraud in the Banks.

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