ASSESSING THE RELATIONSHIP BETWEEN QUALITY ATTRIBUTES AND THE LIKELIHOOD OF FINANCIAL STATEMENT FRAUD IN NIGERIA'S BANKING SECTOR

Abstract

This article rigorously assesses the relationship between the qualitative attributes of financial reporting and the likelihood of financial statement fraud within Nigeria's banking sector. Leveraging the International Financial Reporting Standards (IFRS) Conceptual Framework, it systematically explores how fundamental characteristics (relevance, faithful representation) and enhancing characteristics (comparability, verifiability, timeliness, understandability) influence the propensity for fraudulent financial activities. The analysis posits that adherence to and robust implementation of these quality attributes significantly mitigate fraud risks, while their compromise elevates the likelihood of fraud. Drawing on existing literature and observations within the Nigerian context, the article discusses mechanisms through which these attributes are undermined, the resulting implications for financial stability and investor confidence, and offers actionable recommendations for strengthening financial reporting quality to curb fraud in one of Africa's most vital banking landscapes.

Keywords: Financial Statement Fraud, Quality Attributes, Financial Reporting, Nigerian Banking Sector, IFRS, Corporate Governance.