This study examines the effectiveness of Forensic Accounting in engendering qualitative financial reporting in Nigeria using the banking sector as a reference. The research adopted empirical, survey and descriptive approach. Secondary data for this study were sourced from the annual reports of the chosen banks. Simple five scale binomial ranging from 0-4 were used to analyse the secondary data (financial reporting quality) of the selected banks. Primary data were also sourced to elicit information from accountants using structured questionnaire based on Likert 5-Scale with each containing fifteen questions. A five scale Likert structured questionnaires were administered to a sample size of Two Hundred and Fifty respondents. Respondents were chosen by simple stratification. Pearson’s Correlation Coefficient statistical tool was used to analyse the primary data. The study reveals that the fundamental qualitative characteristics (relevance and faithful representation) of financial reporting accounting and the enhancing qualitative characteristics (understandability) can be significantly enhanced through Forensic Accounting. Analysis of the primary data further attested to the above revelations. To this end, the researcher recommends that relevant regulators of accounting practice in Nigeria such as the Financial Reporting Council of Nigeria and other relevant accounting bodies should ensure that forensic accounting be deeply entrenched to enhance the quality of financial statements and indeed the financial reporting system in Nigeria. Key industrial regulators such as the Central Bank of Nigeria, NDIC, SEC and so on should at regular intervals commission forensic accounting to ensure compliance on the key variables such as relevance, faithful representation, understandability and so on by the annual reports submitted to them by agencies of government and the organised private sector. They should also train and re-train their members on the intricacies of forensic accounting as regards these variables to enhance the utility capital providers and other stakeholders derive from financial reporting in Nigeria.
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