Financial Statements Fraud of Banks and other Financial Institutions in Nigeria

Purpose: There is evidence that managers engage in opportunistic practice to manipulate reported performance attract unsuspecting investors. This paper seeks detect the likelihood of manipulations on financial reports service firms (banks and other institutions) as well identify indicators are likely predictors probability Nigeria. Theoretical framework: The M-score models, from Beneish (1999), employed theoretical basis for paper. model use ratios computed using accounting data confirm firms’ earnings manipulated. Design/Methodology/Approach: study uses Nigerian Exchange Group, 2010 2019 compute M8/M5-scores classify into manipulators unlikely manipulators. In addition, a probit regression was applied establish significantly predict FSF amongst firms. Findings: results based M8 (M5)-score indicate 26.67% (23.33%) books exhibit possibility FSF. only sales receivable, growth, depreciation expenses, leverage accruals assets found be (positive) significant manipulations. Research, Practical & Social implications: implication outcome subjecting statements empirical statistical scrutiny should not ignored because it would reduce associated risks Therefore, more regulatory interventions auditing needed ensure their readability reliability Originality/Value: offers novel first evidence, M-score, scrutinise ensures quality reporting order credibility protect integrity capital markets.