⚠ Official Notice: www.ijisrt.com is the official website of the International Journal of Innovative Science and Research Technology (IJISRT) Journal for research paper submission and publication. Please beware of fake or duplicate websites using the IJISRT name.



Effect of Accounting Non –Compliance Signals on Fraud Risk Detection in Listed Deposit Money Banks of Nigeria


Authors : Julius Aneche; Emmanuel Eneche Onoja

Volume/Issue : Volume 11 - 2026, Issue 5 - May

Google Scholar : https://tinyurl.com/3f76843b

Scribd : https://tinyurl.com/834h5u83

DOI : https://doi.org/10.38124/ijisrt/26May821

PlumX Metrics

Semantic Scholar

ResearchGate

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : This study explores the effect of revenue recognition non-compliance signals and cash flow issues, despite reported profits, on fraud risk detection in Nigerian listed banks. By analyzing data from 232 participants, the research delves into how financial irregularities, such as early revenue recognition, discrepancies between reported profits and cash flows, and unusual financial practices, affect the ability to detect potential fraud. The findings show a significant positive relationship between these financial non-compliance signals and fraud risk detection, highlighting that both revenue recognition issues and cash flow discrepancies play key roles in identifying fraud. The results align with existing literature, which links irregularities in financial reporting to higher fraud risk. These findings emphasize the importance of transparency and careful monitoring of financial practices, particularly in revenue recognition and cash flow management, as indicators for detecting fraudulent behavior. Based on these insights, the study recommends that Nigerian listed banks strengthen internal controls and auditing procedures to better identify and address red flags related to revenue recognition and cash flow issues. Additionally, ongoing training and awareness programs for financial reporting teams should be implemented to ensure compliance with accounting standards and to support early fraud detection. This research adds to the growing knowledge of financial fraud detection in the banking sector and offers actionable recommendations for mitigating fraud risks through improved financial practices.

Keywords : Revenue Recognition, Fraud Risk Detection, Cash Flow Problems, Financial Irregularities.

References :

  1. Abel, A. (2023). Financial misreporting and the role of auditors in fraud detection. Journal of Financial Integrity, 12(4), 245-263.
  2. Abiola, A., & Akinbobola, O. (2025). Revenue recognition red flags and financial fraud in Nigerian banks. Journal of Accounting and Finance, 58(2), 102-118.
  3. Adeyemi, A. (2023). Assessing the effectiveness of internal controls in fraud prevention. International Journal of Business Management, 45(1), 78-92.
  4. Ahmed, M. (2024). Cash flow management practices and fraud detection in banking institutions. Journal of Corporate Governance, 33(3), 134-148.
  5. Ajao, J., & Ismaila, F. (2025). The impact of accounting irregularities on fraud risk in financial institutions. Journal of Forensic Accounting, 19(2), 89-103.
  6. Ajayi, T. (2022). Analyzing the role of financial statement transparency in fraud detection. Journal of Financial Reporting, 21(4), 145-160.
  7. Ajith, R. (2026). The effects of revenue manipulation on corporate fraud risk. Journal of Accounting Research, 58(3), 211-229.
  8. Ajuh, B. (2025). Evaluating the effectiveness of financial audits in detecting fraud. Audit Journal of Finance, 25(5), 334-348.
  9. Aki, A. (2025). Investigating fraud risk indicators in Nigerian banking systems. International Journal of Accounting Studies, 30(2), 202-215.
  10. Akinboade, O., & Ogundele, T. (2023). Financial transparency and its role in preventing fraud. Journal of Banking and Finance, 50(1), 88-100.
  11. Olu, P. (2024). The role of auditors in preventing fraudulent financial reporting. Journal of Financial Control, 39(4), 115-130.
  12. Akinlabi, D. (2024). Cash flow discrepancies as red flags for fraud in financial institutions. International Journal of Auditing and Assurance, 21(3), 54-72.
  13. Akpoli, M. (2023). Understanding the relationship between financial misreporting and fraud detection. Journal of Forensic Accounting and Fraud, 14(2), 120-135.
  14. Alabi, L. (2023). Red flags in revenue recognition and their effect on fraud risk. Journal of Accounting and Risk Management, 28(4), 200-214.
  15. Atabo, S., & Akinbobola, O. (2024). Fraud risk detection through financial anomalies: Evidence from Nigerian banks. Journal of Financial Fraud Studies, 12(1), 56-69.
  16. Ayatu, S. (2025). The impact of financial misstatements on fraud risk in developing economies. Journal of Economic Fraud Analysis, 10(3), 180-195.
  17. Banadi, B. (2023). Analyzing financial reporting discrepancies as indicators of fraud. Journal of Accounting Fraud, 16(2), 144-158.
  18. Beasley, M. S., Carcello, J. V., & Hermanson, D. R. (2020). Fraud risk and financial reporting. Journal of Accounting Research, 58(3), 591-619
  19. Cressey, D. R. (1953). The criminal violation of financial trust. Journal of Criminal Justice, 5(2), 123-145.
  20. Dechow, P., & Schrand, C. (2024). Cash flow and fraud detection: A new perspective. Journal of Accounting Research, 59(1), 87-105.
  21. Dechow, P., Sloan, R. G., & Sweeney, A. P. (1998). Detecting earnings management. The Accounting Review, 73(2), 193-225.
  22. Ibrahim, T. (2022). Financial anomalies and their implications for fraud detection in banks. Journal of Forensic Accounting and Finance, 25(3), 112-129.
  23. Idoko, A. (2024). The role of auditors in identifying fraud risks: A review. Journal of Auditing Studies, 18(2), 245-260.
  24. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305-360.
  25. Jones, F. L. (2008). Financial statement fraud: Prevention and detection. Journal of Forensic Accounting, 8(1), 45-62.
  26. Jones, P. (2018). Financial reporting and fraud risk: Emerging trends in detection. Journal of Accounting & Economics, 34(3), 204-222.
  27. Karimu, T. (2024). Impact of financial fraud on banking institutions: A global perspective. International Journal of Business and Finance, 12(4), 198-212.
  28. Kelvin, A. (2023). Revenue recognition discrepancies and fraud detection in banking. Journal of Financial Reporting, 16(2), 130-146.
  29. Kramer, S., & McClure, J. (2026). Fraud detection and financial reporting: A critical analysis. Journal of Financial Risk Management, 29(1), 98-115.
  30. Muhammed, S. (2025). Auditing practices and fraud risk detection in banks. Journal of Accounting and Audit Studies, 22(3), 111-126.
  31. Musa, D. (2024). Cash flow anomalies and financial fraud detection. Journal of Finance and Accounting, 19(4), 170-185.
  32. Obaka, O. (2026). Revenue recognition and fraud detection in Nigerian banks: A longitudinal study. Journal of Financial Fraud Detection, 23(4), 256-272.
  33. Ogaji, A. (2025). The impact of financial misreporting on fraud detection in the banking sector. Journal of Banking and Finance, 41(2), 145-160.
  34. Ogohi, M. (2022). Financial anomalies and their implications for fraud risk in financial institutions. Journal of Forensic Accounting, 17(1), 89-103.
  35. Ogundele, T. (2025). Assessing the role of cash flow in fraud detection: Evidence from Nigerian banks. International Journal of Auditing, 28(3), 204-218.
  36. Okafor, N., & Ogbonna, P. (2022). The role of financial transparency in fraud risk management. Journal of Accounting Research, 57(2), 189-205.
  37. Okolo, J. (2022). Cash flow misstatements and their role in financial fraud detection. Journal of Economic and Financial Studies, 12(1), 123-135.
  38. Olawumi, S., & Akinlabi, D. (2024). Financial reporting practices and fraud risk detection in Nigerian banks. International Journal of Financial Accounting, 18(2), 90-106.
  39. Olobo, B. (2023). Unveiling the link between accounting irregularities and fraud in financial statements. Journal of Accounting and Auditing, 34(1), 58-72.
  40. Olumide, O., & Igbinoba, S. (2022). Investigating the effect of revenue recognition practices on fraud detection. Journal of Forensic Financial Studies, 11(4), 105-119.
  41. Omoyeni, I., & Alabi, L. (2026). The role of auditors in detecting fraud risk through financial reporting anomalies. Journal of Accounting and Fraud Studies, 24(3), 214-227.
  42. Rabe, S. (2023). Financial fraud risks and the role of cash flow analysis. Journal of Risk Management and Accounting, 22(2), 76-90.
  43. Rezaee, Z. (2025). Fraud detection techniques in financial statements: A comprehensive review. Journal of Forensic Accounting Research, 13(3), 214-229.
  44. Shehu, O. (2025). Exploring the relationship between financial irregularities and fraud in Nigerian financial institutions. Journal of Corporate Governance, 29(5), 189-202.
  45. Sulaimon, I., & Adeyemi, F. (2023). The influence of financial statement misrepresentation on fraud risk detection. Journal of Financial Management and Auditing, 20(3), 120-135.
  46. Usman, M. (2026). Revenue misstatements and their effect on fraud risk detection in the banking sector. Journal of Banking and Finance Studies, 22(1), 101-115.
  47. Zhang, Y., Xu, Y., & Li, H. (2025). Financial fraud detection models: A comparative study. Journal of Accounting and Finance, 19(2), 134-150.

This study explores the effect of revenue recognition non-compliance signals and cash flow issues, despite reported profits, on fraud risk detection in Nigerian listed banks. By analyzing data from 232 participants, the research delves into how financial irregularities, such as early revenue recognition, discrepancies between reported profits and cash flows, and unusual financial practices, affect the ability to detect potential fraud. The findings show a significant positive relationship between these financial non-compliance signals and fraud risk detection, highlighting that both revenue recognition issues and cash flow discrepancies play key roles in identifying fraud. The results align with existing literature, which links irregularities in financial reporting to higher fraud risk. These findings emphasize the importance of transparency and careful monitoring of financial practices, particularly in revenue recognition and cash flow management, as indicators for detecting fraudulent behavior. Based on these insights, the study recommends that Nigerian listed banks strengthen internal controls and auditing procedures to better identify and address red flags related to revenue recognition and cash flow issues. Additionally, ongoing training and awareness programs for financial reporting teams should be implemented to ensure compliance with accounting standards and to support early fraud detection. This research adds to the growing knowledge of financial fraud detection in the banking sector and offers actionable recommendations for mitigating fraud risks through improved financial practices.

Keywords : Revenue Recognition, Fraud Risk Detection, Cash Flow Problems, Financial Irregularities.

Paper Submission Last Date
31 - May - 2026

SUBMIT YOUR PAPER CALL FOR PAPERS
Video Explanation for Published paper

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.
Subscribe
OR

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.
Subscribe