Authors : Solomon Kwasi; Emmanuel Eneche Onoja

Volume/Issue : Volume 11 - 2026, Issue 5 - May

Google Scholar : https://tinyurl.com/5n7kfead

Scribd : https://tinyurl.com/4a6xawuw

DOI : https://doi.org/10.38124/ijisrt/26May819

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Abstract : This study examines the effect of accounting red flags on fraud risk detection in Nigerian-listed oil and gas firms. The study adopted a quantitative research design and collected primary data through a structured questionnaire administered to 148 respondents, including auditors, accountants, finance officers, and other professionals familiar with financial reporting practices in the oil and gas sector. Data were analyzed using descriptive statistics, correlation analysis, and multiple regression analysis with the aid of SPSS 23. The findings revealed that inventory-related red flags have a positive and significant effect on fraud risk detection. The study also found that unusual margin changes significantly influence fraud risk detection, suggesting that unexplained movements in profitability ratios may serve as useful warning signals. The study concludes that accounting red flags are important tools for improving fraud risk detection in Nigerian-listed oil and gas firms. It recommends stronger audit procedures, improved inventory controls, regular margin analysis, and stricter review of capitalization policies. The study contributes to fraud detection literature by providing sector-specific evidence from Nigeria’s oil and gas industry.

Keywords : Accounting Red Flags, Fraud Risk Detection, Inventory Red Flags.

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