What is Financial Fraud

Financial reporting fraud affects corporate organizations as stakeholders express lack of self-confidence in financial reports. The chapter assessed the effect of financial reporting fraud, improper expense recognition and fictitious revenue on the performance of firms in the Nigerian Exchange Group return on assets (ROA). Secondary data were collected from the firm annual accounts. Correlation and regression analysis were employed. The results revealed that improper expense recognition has a negative significant relationship with ROA. Also, fictitious revenue reflected a positive but insignificant relationship with ROA. The chapter concluded that financial reporting fraud somewhat affects the performance of firms as supported by a positive relationship reflected by fictitious revenue and negative relationships shown by improper expense recognition. The chapter recommended that financial reporting fraud needs to be investigated to reveal the fraud that affects the performance of firms to aid better and easier forensic accounting investigation.