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Forensic Audit for Financial Frauds in Banks: The Case of Bangladesh
Abstract
Traditional auditing has failed to control the jeopardy of increased financial frauds. Gradually, forensic auditing has been employed by organizations to control such frauds. Nonetheless, there is a dearth of studies examining the effects of forensic auditing on financial frauds. In particular, the impact of forensic auditing on financial frauds in Bangladesh is not examined. This study attempts to fill this gap. Using survey data of 182 respondents, this study applied logistic regression analysis. Findings indicate that forensic auditing has significant positive effects on the detection and prevention of financial fraud occurrences in the banking sector of Bangladesh. Findings also indicate that forensic auditing is competent to diminish financial frauds. Therefore, it is recommended to adopt forensic auditing in the banking sector of Bangladesh.
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