MONEY LAUNDERING

This study examined the impact of forensic auditing on the detection and prevention of cryptocurrency-related fraud in Nigeria, with a focus on organizational practices and audit effectiveness. The primary objective was to determine the extent to which forensic auditing techniques enhance the identification and mitigation of fraudulent activities involving digital currencies. A survey research design was adopted, and data were collected using structured questionnaires administered to auditors, accountants, and financial analysts in selected firms. The responses obtained were analyzed using descriptive statistics, mean scoring, and regression analysis to evaluate the relationship between forensic auditing and cryptocurrency fraud detection. The findings revealed that forensic auditing significantly improves the detection of cryptocurrency fraud by enhancing transaction tracing, digital evidence analysis, and fraud risk assessment. However, the study also identified challenges, including insufficient technical expertise and inadequate regulatory frameworks, which limit the full effectiveness of forensic audit practices in this domain. Based on these findings, the study recommends that organizations and regulatory bodies invest in continuous training and capacity-building programs for forensic auditors to equip them with advanced digital investigative skills. Strengthening professional competence will enhance fraud detection efficiency and promote transparency in cryptocurrency transactions.