INTERNAL CONTROL SYSTEM EFFECTIVENESS AND FRAUD PREVENTION INNIGERIAN DEPOSIT MONEY BANKS
Over the years, there has been an emphasis not only on the presence of internal control system in the banking sector but also the efficiency of internal control. There is possibility for internal control unit to be present but they are ineffective. This study was carried out to examine internal con...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Department of Accounting and Finance, Federal University Gusau
2021-11-01
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| Series: | Gusau Journal of Accounting and Finance |
| Subjects: | |
| Online Access: | https://journals.gujaf.com.ng/index.php/gujaf/article/view/86 |
| _version_ | 1818236107209310208 |
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| author | Molokwu Evelyn Nneamaka Nyor Terzungwe Ahmed Nma Mohammed Yazid Kabir Ibrahim Halima Shuaibu |
| author_facet | Molokwu Evelyn Nneamaka Nyor Terzungwe Ahmed Nma Mohammed Yazid Kabir Ibrahim Halima Shuaibu |
| author_sort | Molokwu Evelyn Nneamaka |
| collection | DOAJ |
| description |
Over the years, there has been an emphasis not only on the presence of internal control system in the banking sector but also the efficiency of internal control. There is possibility for internal control unit to be present but they are ineffective. This study was carried out to examine internal control system effectiveness and fraud prevention in deposit money banks in Nigeria. The study adopts a descriptive analysis which helps in summarizing the data. Inferential statistics was used such as the multiple regression analysis to explain internal control system effectiveness and fraud prevention. Questionnaires were administered to Nineteen deposit money banks in Nigeria and a total of 40 questions were asked and answered accurately. Cronbach Alpha Coefficient was used to test the reliability of the measurement and as such are reliable because the entire alpha coefficients are greater than 0.6. The findings of the study show that there is a positive and significant relationship between control environment and fraud prevention mechanism The overall result showed that control environment (CE), risk assessment (RA), information and communication (IC) and monitoring (MO) have a positive and significant impact on fraud prevention, whereas control activities have a positive but insignificant effect on fraud prevention. Based on the findings, the study recommends that organizations’ management and those saddled with the responsibility of governance of companies should always be alert to all possible circumstances (business risks) that may threaten the banks’ ability in achieving its set objectives. Management can achieve this through regular assessment of the operating environment of the organization to identify threats arising from competition, legislation, technological changes, etc. The banking sectors should carryout regular reviews of their control system. This can be done at least semi-annually. The management should ensure it receives timely, relevant, and reliable reports for decision-making.
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| first_indexed | 2024-12-12T12:04:36Z |
| format | Article |
| id | doaj.art-09dc15849d144c8cb7a13eeb0542a758 |
| institution | Directory Open Access Journal |
| issn | 2756-665X |
| language | English |
| last_indexed | 2024-12-12T12:04:36Z |
| publishDate | 2021-11-01 |
| publisher | Department of Accounting and Finance, Federal University Gusau |
| record_format | Article |
| series | Gusau Journal of Accounting and Finance |
| spelling | doaj.art-09dc15849d144c8cb7a13eeb0542a7582022-12-22T00:25:01ZengDepartment of Accounting and Finance, Federal University GusauGusau Journal of Accounting and Finance2756-665X2021-11-0124INTERNAL CONTROL SYSTEM EFFECTIVENESS AND FRAUD PREVENTION INNIGERIAN DEPOSIT MONEY BANKSMolokwu Evelyn Nneamaka0Nyor Terzungwe1Ahmed Nma Mohammed2Yazid Kabir Ibrahim3Halima Shuaibu4Nigeria Defence AcademyNigeria Defence AcademyNigeria Defence AcademyFederal University GusauAhmadu Bello University Zaria Over the years, there has been an emphasis not only on the presence of internal control system in the banking sector but also the efficiency of internal control. There is possibility for internal control unit to be present but they are ineffective. This study was carried out to examine internal control system effectiveness and fraud prevention in deposit money banks in Nigeria. The study adopts a descriptive analysis which helps in summarizing the data. Inferential statistics was used such as the multiple regression analysis to explain internal control system effectiveness and fraud prevention. Questionnaires were administered to Nineteen deposit money banks in Nigeria and a total of 40 questions were asked and answered accurately. Cronbach Alpha Coefficient was used to test the reliability of the measurement and as such are reliable because the entire alpha coefficients are greater than 0.6. The findings of the study show that there is a positive and significant relationship between control environment and fraud prevention mechanism The overall result showed that control environment (CE), risk assessment (RA), information and communication (IC) and monitoring (MO) have a positive and significant impact on fraud prevention, whereas control activities have a positive but insignificant effect on fraud prevention. Based on the findings, the study recommends that organizations’ management and those saddled with the responsibility of governance of companies should always be alert to all possible circumstances (business risks) that may threaten the banks’ ability in achieving its set objectives. Management can achieve this through regular assessment of the operating environment of the organization to identify threats arising from competition, legislation, technological changes, etc. The banking sectors should carryout regular reviews of their control system. This can be done at least semi-annually. The management should ensure it receives timely, relevant, and reliable reports for decision-making. https://journals.gujaf.com.ng/index.php/gujaf/article/view/86Control EnvironmentRisk AssessmentControl ActivitiesFraud Prevention |
| spellingShingle | Molokwu Evelyn Nneamaka Nyor Terzungwe Ahmed Nma Mohammed Yazid Kabir Ibrahim Halima Shuaibu INTERNAL CONTROL SYSTEM EFFECTIVENESS AND FRAUD PREVENTION INNIGERIAN DEPOSIT MONEY BANKS Gusau Journal of Accounting and Finance Control Environment Risk Assessment Control Activities Fraud Prevention |
| title | INTERNAL CONTROL SYSTEM EFFECTIVENESS AND FRAUD PREVENTION INNIGERIAN DEPOSIT MONEY BANKS |
| title_full | INTERNAL CONTROL SYSTEM EFFECTIVENESS AND FRAUD PREVENTION INNIGERIAN DEPOSIT MONEY BANKS |
| title_fullStr | INTERNAL CONTROL SYSTEM EFFECTIVENESS AND FRAUD PREVENTION INNIGERIAN DEPOSIT MONEY BANKS |
| title_full_unstemmed | INTERNAL CONTROL SYSTEM EFFECTIVENESS AND FRAUD PREVENTION INNIGERIAN DEPOSIT MONEY BANKS |
| title_short | INTERNAL CONTROL SYSTEM EFFECTIVENESS AND FRAUD PREVENTION INNIGERIAN DEPOSIT MONEY BANKS |
| title_sort | internal control system effectiveness and fraud prevention innigerian deposit money banks |
| topic | Control Environment Risk Assessment Control Activities Fraud Prevention |
| url | https://journals.gujaf.com.ng/index.php/gujaf/article/view/86 |
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