Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Relationship Between Forensic Auditing And Fraud Risk Management. A Case Study Of ABSA Bank, Kampala
Hosan Yusuf Mohamed, Magala Muhammed
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 4, No. 12 |
| Published | 31 December 2025 |
| ISSN | 3006-4384 |
Abstract
The study investigated the relationship between forensic auditing practices and fraud risk management at ABSA Bank, Kampala, Uganda. Employing a descriptive correlational research design, the study surveyed 92 respondents comprising internal auditors, risk management officers, fraud investigators, and senior management personnel. Data were collected through structured questionnaires and analysis of fraud incident reports covering the period 2020-2023. The findings revealed a strong positive correlation (r = 0.812, p < 0.001) between forensic auditing practices and fraud risk management effectiveness. Specifically, forensic audit investigations detected 89% of fraud cases, while preventive forensic audit procedures reduced fraud incidents by 58% over the study period. Fraud losses declined from UGX 1.2 billion in 2020 to UGX 384 million in 2023, representing a 68% reduction. The study found that forensic auditing techniques including digital forensics (r = 0.768), financial statement analysis (r = 0.741), and fraud detection algorithms (r = 0.793) were significantly correlated with reduced fraud risk exposure. Recovery rates for fraudulent transactions improved from 34% to 71% following strengthened forensic audit capabilities. The study concluded that forensic auditing was a critical component of comprehensive fraud risk management frameworks in banking institutions. It was recommended that ABSA Bank should enhance forensic audit capacity through advanced technology adoption, continuous staff training in forensic techniques, establishment of a dedicated forensic audit unit, and strengthening of whistleblower protection mechanisms. Other financial institutions were encouraged to integrate forensic auditing into their fraud risk management strategies.
Keywords
Forensic auditing
fraud risk management
fraud detection
fraud prevention
banking fraud
Cite This Article
Hosan Yusuf Mohamed & Magala Muhammed (2025). Relationship Between Forensic Auditing And Fraud Risk Management. A Case Study Of ABSA Bank, Kampala. Metropolitan Journal of Academic Multidisciplinary Research, 4(12). https://journals.miu.ac.ug/pages/article.php?article_id=513
More in This Issue
View full issue →
11
Effect Of Top Management Commitment (TMC) On Organizational Performance. A Case Study Of Mukwano Industries
Top management commitment
organizational performance
leadership effectiveness
strategic
12
Effects Of Data Collection On Return On Assets At Pride Microfinance Limited; Kabalagala Branch In Kampala.
Data Collection
Return on Assets
Microfinance
Financial Performance
13
14
Financial Records Keeping And Performance Of Small And Medium Enterprise In Organizations. A Case Study Of Kawempe Division, Kampala City.
Financial records keeping
SME performance
bookkeeping
small business accounting
15
Moderating Influence Of Organizational Justice On The Relationship Between Labour Turnover And Service Delivery At Ntungamo District Local Government In Uganda.
Organizational justice
labour turnover
service delivery
moderation