Abstract
Financial transparency, characterized by the openness, clarity, and accessibility of public
financial information, remains a significant governance challenge in Southwest Nigeria. This
study empirically investigates the impact of forensic auditing conceptualized through its core
components of Investigative Audit Techniques (IAT), Evidence Analysis Procedures (EAP), and
Litigation Support Functions (LSF) on these dimensions of transparency. Employing a quantitative
research design, data was collected from 157 financial and audit professionals across state
ministries in Southwest Nigeria and analyzed using multiple linear regression. The results
demonstrate a differentiated impact: Openness of Financial Information (OFI) was significantly
enhanced by IAT (β=0.298, p<0.01) and EAP (β=0.412, p<0.01). Clarity of Financial Disclosure
(CFD) was most strongly driven by EAP (β=0.461, p<0.01), with a secondary effect from LSF
(β=0.132, p<0.05). Notably, Accessibility of Financial Reporting (AFR) was positively influenced
by all three components: IAT (β=0.194, p<0.01), EAP (β=0.187, p<0.05), and LSF (β=0.253,
p<0.01). The regression models were statistically significant (p<0.01) with substantial
explanatory power (Adjusted R²: 56.2% for OFI, 57.8% for CFD, 43.2% for AFR). The study
concludes that forensic auditing is a potent but under-optimized tool for promoting transparency
in the region. A critical "enforcement gap" exists, where investigative and analytical functions are
more developed than the legal follow-through. We recommend the formal establishment of forensic
audit units and stronger legal-institutional frameworks to ensure audit findings translate into
concrete accountability and improved public financial management.