FRAUD RISK FACTORS AND PREVENTION OF FINANCIAL STATEMENT FALSIFICATION AMONG NON-FINANCIAL FIRMS LISTED IN NIGERIA

Abstract

The study investigated the effect of fraud risk factors on the prevention of financial statement falsification. Specifically, the study sought to rationalization and opportunity on the prevention of financial statement falsification among non-financial firms listed in Nigeria. Survey research design was adopted for the study. The population of the study was drawn from non-financial firms in south-south Nigeria. Data were extracted from the questionnaires administered to the respondents. Using regression analysis, the study revealed that rationalization and opportunity have significant effect on prevention of financial statement falsification.  Based on the results, the study recommended among others that to ensure effective prevention of falsification, there is need for Strengthen Corporate Culture and Tone at the Top; hence Employees rarely rationalize fraud in companies where leadership visibly prioritizes honesty over short-term metrics. Executive leadership and board members must demonstrate unwavering integrity, particularly during financial downturns or missed earnings targets.