Fraud Risk Factors and Prevention of Financial Statement Falsification among Non-Financial Firms in Nigeria

Abstract

The study ascertained the effect of fraud risk factors on the prevention of financial statement falsification among non-financial firms listed in Nigeria, using pressure and fraud perpetrators’ capabilities as a measure of fraud risk factors. Survey research design was employed for the study. The population of the study was drawn from non-financial firms in south-south Nigeria. Data were generated from the questionnaires administered to the respondents. Using regression analysis, the study revealed that pressure and fraud perpetrators’ capabilities have significant effect on prevention of financial statement falsification.  Based on the results, the study recommended among others that to effectively eliminate a perpetrator’s capability and opportunity to manipulate financial records, organizations can enforce Strict Segregation of duties; ensure that no single individual has complete control over a financial transaction from start to finish.