Forensic Auditing Skills and Financial Reporting Quality of Insurance Companies in Nigeria

This study examined the effect of forensic auditing skills on Financial Reporting Quality (FRQ) of listed insurance companies in Nigeria. A survey research design was employed for this investigation. The population comprises of all the certified forensic accountants in Nigeria as of 31st December, 2022. The study's sample size was determined using Taro Yamane formula. The researcher employed a simple random sampling to select 359 forensic experts. The primary data were gathered from the designed questionnaire that was administered to the respondents. Generalized Linear Model (GLM) regression with the aid of statistical package (STATA 14) was employed to analyze the collected data. The independent variables were diagnosed with normality and multicollinearity tests. The results of GLM regression reveal that fraud prevention, detection and deterrence skills, litigation mediation and arbitration skills, information technology skills, and Insurance loss analytical proficiency skills have a positive significant relationship with financial reporting quality of insurance companies in Nigeria. The researcher recommends that policymakers should encourage insurance companies in Nigeria to invest in training and development programs to locally acquire fraud prevention, detection, and deterrence skills. It also recommends that policymakers should encourage insurance companies in Nigeria to collaborate with international experts, law firms, and institutions specializing in litigation mediation and arbitration. Finally, policymakers should consider updating financial reporting standards to include specific requirements related to loss analysis and reporting.