Conventional Audit and Financial Crime in Nigeria

This study explores the relationship between conventional audit practices and financial crime in Nigeria, focusing on audit independence and audit risk concerning money laundering and embezzlement. Grounded in agency theory, the research addresses gaps in understanding the effectiveness of audit mechanisms in curbing financial irregularities. Using a survey research design, findings reveal that audit independence and audit risk significantly and positively impact both money laundering and embezzlement in Nigeria. The results emphasize the critical role of robust audit frameworks in addressing financial crimes. It is recommended that regulatory policies strengthen audit independence through enhanced training, and organizations adopt comprehensive risk management systems to mitigate high audit risk areas, thereby improving fraud detection and prevention.