The Impact of Forensic Audit on Investment Decision Among Listed Deposit Money Banks in Nigeria

Abstract: The impact of forensic auditing on investment choices in Nigeria's listed Deposit Money Banks (DMBs) is investigated in this study. Conventional auditing techniques have failed to combat fraud and advance transparency in the face of pervasive financial irregularities and frequent business scandals in the public and private sectors. In order to address financial fraud, forensic accounting—an methodology that combines auditing, investigative, and legal methodologies—has become more popular. The study focusses on how Return on Investment (ROI) in the Nigerian DMB sector is impacted by audit quality and auditor skill. The study found a positive but statistically insignificant correlation between audit quality and ROI by employing a census technique that included all 14 mentioned DMBs and multiple regression analysis of secondary data in SPSS (version 25). On the other hand, auditor expertise showed a notable positive impact on ROI, underscoring its crucial role in better financial results. The results highlight how crucial it is to improve auditor competency in order to increase investor confidence and guide wise investment choices. The study promotes more funding for auditor education and capacity building in order to boost investment performance and increase the accuracy of financial reporting.