This paper examined forensic accounting capability and useful strategies to minimize the effects of financial crimes and other related frauds in Nigeria economy. Various points at which preventive controls can be established were identified.Data were collected from two hundred and fifty five (255) respondents in the south-west geo-political zone of Nigeria and response on capability and suitability of using forensic accounting principles and measures to prevent undue practice that often arises via financial crimes in the economy were analyzed with Analysis of Variance Method. The results showed that the estimated Z-statistic was 115.3736.The critical table value of the Z-statistic at 5% level of significance (95% confidence level) was obtained as 1.645. Since the estimated test statistic (Z-statistic) value exceeds the critical table value at 95% confidence level, the null hypothesis is rejected in favour of the alternative hypothesis. Thus, the study concludes that forensic Accounting principles is capable of eliminating all types of financial frauds in any economy. It was also empirically found that forensic accounting can be used to locate diverted funds or assets, identify misappropriated assets and identified reversible insider transactions, thus, forensic accounting is useful as effective fraud detection tool, detects suspicious fraudulent transactions and covers risk assessment processes. Based on the above the study recommends the adoption of forensic accounting principles, effective appropriation of financial resources and external auditors employment.