FRAUD RISK AND BUSINESS CONTINUITY: INSIGHTS FROM COMPANIES IN PORT HARCOURT, NIGERIA

This study evaluates the effect of corporate fraud on the going concern assumption of selected companies in Port Harcourt, Nigeria. Specifically, the research investigates how key dimensions of fraud: asset misappropriation, financial statement fraud, employee collusion, and management override influence critical indicators of organizational sustainability, namely liquidity position and profitability trends. The study adopted a descriptive survey research design and utilized structured questionnaires administered to finance and audit professionals across selected firms. A total of 138 valid responses were analysed using both descriptive statistics and inferential techniques such as Pearson correlation and multiple regression analysis, with the aid of SPSS software. Findings revealed that all dimensions of corporate fraud have statistically significant negative effects on the going concern status of companies. Specifically, asset misappropriation significantly affects liquidity, while financial statement fraud distorts profitability reporting. Employee collusion and management override were also found to undermine internal control systems and compromise the credibility of financial reports, thus increasing the risk of business failure. The study concludes that corporate fraud poses a serious threat to organizational continuity and recommends the strengthening of internal control systems, enforcement of ethical financial reporting standards, enhanced board oversight, and the institutionalization of fraud risk assessment procedures. Regulatory bodies are also urged to increase oversight and enforce stricter sanctions on fraudulent companies