The Relevance of Forensic Audit and Investigation in Resolving Tax Related Fraud and Malfeasance

The incessant tax related fraud and malfeasance resulting to corporate collapse and the failure of the statutory audit to detect and prevent fraudulent activities which had led to the impoverishment of investors had given rise to the need for forensic audit and investigations. In view of the above, this paper considers the application of forensic audit and investigation in resolving tax related fraud and malfeasance. The study is a theoretical research which considers the roles of forensic auditors in combating fraudulent activities, distinction of forensic auditor and statutory auditor, and impact of forensic auditor on corporate governance. Based on the findings; this paper concludes that forensic auditing has improved management accountability, strengthened external auditor's independence and assisting audit committee members in carrying out their oversight function by providing them assurance on internal audit report have impacted positively to corporate governance, thereby reducing tax related fraud and malfeasance. Therefore the study recommends that; the service of forensic auditors should be employed in Nigerian organisations