INTERNAL CONTROL SYSTEM AND BANK FRAUD PREVENTION IN NIGERIA BANKING INDUSTRY
ABSTRACT
This study mainly focuses on Internal Control System and Bank Fraud Prevention in Nigeria Banking Industry. Internal control plays a significant role in the Nigeria banking industry. Internal control are policies, procedures, practices on organizational structure implemented to provide reasonable assurance that organization’s business objective will achieve and undesired risk event will be prevented or detected and corrected based on either compliance or management initiated concerns.
The researcher uses survey design hence, the use of questionnaires, personal interview and observation in data collection. Hypotheses were formulated and analyzed with the use of chi-square test at 5% level of significance. The findings revealed that bank with internal control system can prevent the menace of fraud and a good internal control system has a significant affection on fraud detection and control. The study concludes that Lack of good internal control measure is a major cause of fraud in various banks and recommends among others that banks in Nigeria should pursue and effective internal control measures to prevent fraud.
CHAPTER ONE
Introduction
1.1 Background to the Study
Internal control, the strength of every organization, has become of paramount importance today in Nigeria banks; the reason being that the control system in any organization is a pillar for an efficient accounting system. The need for internal control systems in the organization, especially banks cannot be undermined, due to the fact that the banking sector, which has a crucial role in the economic development of a nation, is now being characterized by macro economic instability, slow growth in real economic activities, corruption and the risk of fraud.
Fraud, which is the major reason for setting up internal control system, has becomes a great pain in the neck of many Nigerians. It also has become an unfortunate staple in Nigeria’s international reputation. Fraud is really eating deep into the Nigeria banking system and that any bank with a weak internal control system is dangerously exposed to bank fraud.
In a nut-shell, the damage which this menace called “fraud” has done to banks in is innumerable and needs urgent attention. Therefore the attempt to put an end to this economic degradation, gave rise to the topic of this research study internal control system and bank fraud prevention in Nigeria banking industry with Union Bank Plc as a case study. However, this study is aimed at verifying the concept that an effective and efficient internal control system is the best control measure for preventing and detecting fraud, especially in the banking sector.
1.2 Statement of Problem
Considering the effects by fraud and fraudulent act as pointed in the introduction, the problem of this study is to effectively comb and curb the incidence of fraud. Yet they have not been able to stop bank fraud completely. For this reason, this research was carried out to help the banks in looking for ways of preventing bank fraud to achieve the objective, and this research work will be guided with questions.
1.3 Research Questions
In other to achieve the objective of this study the following questions need to be answered;
- Is lack of good internal control a major cause of fraud in bank?
- Do banks with internal control system prevent menace of frauds in Nigeria?
- Why do bank personnel commit fraud?
- How effectively is fraud control measure in Nigeria banks?
1.4 Objective of the Study
The objective of this research is basically aimed at the following:
- To determine if lack of good internal control a major cause of fraud in bank.
- To ascertain whether banks with internal control system prevent menace of frauds in Nigeria.
- To determine if bank personnel commit fraud.
- To ascertain how effectively fraud control measure is in Nigerian banks.
1.5 Statement of Hypotheses
Hypothesis One
- HO: The lack of a good internal control is not a major cause of fraud in banks.
- HI: The lack of a good internal control is a major cause of frauds in Nigeria.
Hypothesis Two
- HO: Banks with internal control system cannot prevent the menace of fraud in Nigeria.
- HI: Banks with internal control system can prevent the menace of fraud in Nigeria.
1.6 Significance of the Study
From all experience, fraud is unique in terms of the system of planning and execution.
Knowledge of the various ways which fraud have been perpetuated in the past and foresight or anticipation system considering the past can facilitate an adequate internal control design that can be efficient and effective in guiding management in the prevention and re-occurrence of fraud. If it is agreed that majority of fraud are born by the bank, then banks should pursue effective internal control measures to prevent fraud.
The research work therefore is designed to help to get acquainted with various frauds and their method of execution with the view of gaining sufficient knowledge to enrich individuals and collective experience in management and prevention of fraud.
1.7 Scope of the Study
This study examines the nature and prevention of bank fraud in Nigeria banking system and is based on knowing how good internal control relate with the prevention of bank frauds in the Nigeria banking. The study is based strictly in Nigeria banking system and more emphasis is based in Auchi, the research work uses a time frame of 5 years (2009 − 2013) using a sample size of 75 for effective result.
1.8 Limitations of the Study
As a matter of fact, fraud in bank is a very sensitive issue, bankers hardly agree to discuss incidence of fraud in their bank, this is due to the fact that might scare their customer, and their competitors could capitalized on that. However, personal observation and experience as a long time practicing bankers has also been put to play in the research work especially in the area of scanning for information, except that these observations and experience were not originally documented.
1.9 Definitions of Terms
The following are the definition of certain terms used in writing the project which the research feels that there may not be so conversant with.
Fraud:
This is an act or cause of deception deliberately practiced to gain unlawful and unfair advantage such deception is directly to the detriment of another person or group of persons.
Fraudulent:
Means deceitful, a person who commit frauds.
Internal Audit:
Means an independent appraisal unit within an organization for the review of operation and service to management in a managerial control by measuring and evaluating the effectiveness of others.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
Internal Control System and Bank Fraud Prevention in Nigeria Banking Industry can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
TABLE OF CONTENTSPRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.1 Background …
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "Internal Control System and Bank Fraud Prevention in Nigeria Banking Industry" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
PRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.1 Background …
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "Internal Control System and Bank Fraud Prevention in Nigeria Banking Industry" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Can the material for “Fraud Detection and Control in Cooperative Thrift and Credit Societies” be used as a guide for Cooperative Economics and Management (CEM) Project?
Yes it can be used — Cooperative thrift and credit societies emerged as a result of people coming together, posting their resources in mutual effort in order to solve their problem. The study examines the Fraud Detection and Control in Co-operative Thrift and Credit Societies using any Selected Credit Co-operative Societies in Ahiazu Mbaise LGA, Imo State as a case study. In achieving this aim, the following specific objectives were laid out to determine the cause of fraud in cooperative thrift and credit society, identify the prevalent fraud in cooperative thrift and credit societies and provide solution on how fraud can be control in cooperative thrift and credit societies. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from …
Can the material for “Online Marketing Information Management System for Personal ICT Services” be used as a guide for Software Engineering Project?
Yes it can be used — Marketing Information System is a computerized system that is designed to provide an organized flow of information to enable and support the marketing activities of an organization. The main aim of this study is to develop and implement an ICT Services for Online Marketing System that will be useful to business owners. In achieving this aim, the following specific objectives were laid out to create a platform for businesses to reach a wider audience and increase sales and profits, develop a general purpose store where consumers can find products and services from the comfort of home through the Internet, and implement an online virtual store on the Internet where customers can browse the catalog and select products of interest. One …
Can the material for “Impact of Trade Openness on the Economic Growth of Nigeria” be used as a guide for Industrial Relations and Personnel Management (IRPM) Project?
Yes it can be used — The research evaluated the impact of trade openness on the economic growth of Nigeria 1988-2014. The study employed secondary time series data, sourced from Central Bank of Nigeria Statistical Bulletin 2014. A four variable model was developed comprising GDP as dependent variable and Trade Openness, Foreign Direct Investment and Exchange rate as independent variables and the Ordinary Least Squares (OLS) estimation technique of Multiple regression analysis was adopted. The findings of the research work includes: Trade Openness has a negative impact on Economic growth, Economic growth causes Trade Openness. Based on the findings, the study amongst others recommends that The Government should analyse Export promotion policy and import substitution policy should also be examined, so that country can take benefit from …
Is the topic “The Perspective of Oral Literature and African Culture in Benin Kingdom as Portrayed by Different Authors in Some Selected Book” recommended for Literature in English Project?
Yes it is highly recommended — This work is on the perspective of oral literature and African culture in Bini Kingdom as portrayed by different authors in some selected books. The western colony hold on the view that African has no literature and they termed it “dark Continent”. This work reveals to us that Africa is rich in oral tradition and the Binis are more of it. The study attempts to explicate more explicitly on oral tradition by reflecting on all multitudinous problems oral tradition has helped to proffer solution to. The work is split into five chapters, chapter one is on knowing oral tradition, chapter two centers on literature review, the works of earlier Africa orature, chapter three examines the research methodology, chapter four provides …
Can this topic “Determinants of Investment in Nigeria (1985-2011)” be used for Economics Project?
Yes it can be utilized for research — In recent times, there has been growing concern about the rising but volatile rate of investments in Nigeria. Thus concern stem from the fact that investment plays a dominant role in stimulating growth. The study buttress on the overview and empirical analyses into the determinant of investment in Nigeria in other to achieve the objective hypotheses which was stated with the purpose of achieving current and future stable and upswing of investment by readdressing problems of investment, as highlighted in the statement of problem. The study used investment as dependent variable and interest rate, inflation, foreign direct investment, degree of trade openness, gross domestic product, and money supply as independent variable. In analyzing the data, economic model of multiple regression …
Can the material for “The Effects of the New Salary Scheme on Teachers’ Performance” be used as a guide for Education Project?
Yes it can be used — This research work evaluated the effects of the new salary scheme on teachers’ performance with reference to selected secondary schools in ogun-state. 50 copies of questionnaire were administered by teachers in different secondary schools. The non-parametric of chi-square was used to measure the relationship between the new salary scheme and teachers performance. The study found out that there is significant relationship between the new salary scheme and teachers performance, it was also discovered that there is a significant relationship between teachers’ efficiency, productivity and incentives given. The study equally showed that teachers will not see the new salary scheme has adequate and well compensating. The researcher however recommended that a professional body or association should be established to regulate the …
Can the material for “Capital Market Structure Development” be used as a guide for Economics Project?
Yes it can be used — This study was intended to evaluate capital market structure and development. The study was guided by the following objectives; to analyze and evaluate the capital market structure in aiding the development of the Nigerian economy. The study employed the descriptive and explanatory design; questionnaires in addition to library research were applied in order to collect data. Primary and secondary data sources were used and data was analyzed using a statistical package which is represented in frequency tables and percentages. The respondents under the study were 40 employees of the Nigerian stock exchange. The study findings revealed that the Nigerian stock exchange has been performing a significant role in Nigerian economic development; the present structure of the capital market facilitates rapid development of …
Can the material for “Online Office Chat Application System” be used as a guide for Computer Science (CS) Project?
Yes it can be used — Instant messaging has brought an effective and efficient real-time, text-based communication to the Internet community. The aim of the study is to Design and Implement a web based chat application that will allow users within an intranet / internet connection to engage in private and public conversations. In achieving this aim, the following specific objectives were laid out to develop a conceptual design for a secure, accessible and user-friendly web based chat application for a university, using the University of Calabar, UNICAL, as case study and perform tests on the said system to assure functionality, accessibility and usability of the system. The methodology adopted in this study is the structured system analysis and design methodology (SSADM) which is a technical approach …
Can the material for “Design and Implementation of an Online Learning Website” be used as a guide for Computer Science (CS) Project?
Yes it can be used — Online Learning is a web-based environment that allows students to participate in live teaching and learning events without the need to travel. The aim of the study is to develop an Online Learning Website using Computer Science Department in National Open University of Nigeria as a case study. In achieving this aim, the following specific objectives were laid out as follows to design an application that will provide alternative way of attaining education and facilitate the development of information technology. The motivation that led to the implementation of the proposed system is that tertiary education suffers a lot of setbacks in external exams due to the primitive nature of teaching system which they receive. The rate of examination malpractice has …
Can the material for “Ensuring Positive Consumers Attitude Towards Insurance Contract in Nigeria” be used as a guide for Insurance Project?
Yes it can be used — This project is designed to determine the attitude of the general public towards insurance contract in Nigeria. The topic to be discussed is “ensuring positive consumers attitude towards insurance contract in Nigeria. A study of IGI Enugu”. In chapter one of this work, I treated the introduction, significance of the study, statement of problems and definition of terms and also limitations of the study. In chapter two, I reviewed some related literature. Chapter three is the research design and methodology which focused on the method employed in the course of this work. It related to the type of sample method of collecting data, it also provide the types of data used and its sources. In chapter four, I presented the summary …