ETHICAL AUDITING AND TECHNOLOGICAL INNOVATION: A DUAL APPROACH TO FIGHTING FINANCIAL FRAUD IN NIGERIA

Abstract

This study examined the relationship between ethical auditing and technological innovation as a dual strategy for combating financial fraud in Nigeria. The study adopted a descriptive and correlational research design, utilizing primary data obtained from 140 auditors, accountants, and compliance officers across selected audit firms and financial institutions in Lagos and Abuja. Data were analyzed using descriptive statistics and multiple regression analysis. Findings revealed that auditors’ integrity, objectivity, competence, and independence significantly influence technological innovation in audit practice. Among these dimensions, auditors’ professional competence exerted the strongest effect, highlighting the importance of skill development and technological literacy in fraud detection and prevention. The study concludes that ethical auditing provides a foundation for the effective adoption of digital auditing tools such as artificial intelligence, blockchain, and data analytics. It recommends continuous ethics training, technological capacity building, and regulatory enforcement to enhance transparency, accountability, and innovation in the Nigerian auditing profession.