Title:
EFFECT OF FORENSIC AUDITING ON THE FINANCIAL PERFORMANCE OF SELECTED FOOD AND BEVERAGE FIRMS IN NIGERIA

Authors:
Awotomilusi, N.S. and Johnson Folashade Anita, Nigeria

Abstract:
This study is based on the premise that forensic auditing plays a crucial role in the identification and rectification of financial irregularities and has the potentials to influence the financial performance of these organizations. The study examined the effect of forensic auditing on the financial performance of selected food and beverage firms in Nigeria, Specifically, the study evaluated the effects of forensic auditing techniques, forensic auditing competence and forensic data analytics on financial performance of listed food and beverages firms in Nigeria. Anchored on Stakeholder theory and adopted survey design, the study population consists of all food and beverage companies in Nigeria, while 100 employees from selected companies were selected as sample size based on purposive sampling technique. The data were collected using questionnaire and thereafter analyzed using both descriptive such as mean, standard deviation and multiple regression analysis. The results revealed that forensic auditing techniques (FAT), competence (FAC) and forensic data analytics (FDA) are powerful predictors of financial performance. Findings revealed that forensic auditing techniques have a positive and significant impact on the financial performance of selected food and beverages companies in Nigeria. The result show that there is a positive and significant effect on the financial performance of selected food and beverages companies in Nigeria. The finding of the study revealed forensic data analytics (FDA) has a positive and significant effect on financial performance. It was concluded that companies that possess a greater level of expertise in forensic auditing and make efficient use of data analytics are more likely to obtain favorable financial performance. This study provides valuable insights for policy development and corporate governance within Nigeria's food and beverage sector. It is therefore recommended that food and beverages companies should use forensic experts to investigate fraud and when fraud is found the right consequences should be taken.