The Role Of Internal Auditors In Fraud Detection And Prevention In Banks In Nigeria

The Role Of Internal Auditors IN Fraud Detection And Prevention In Banks In Nigeria

Chapter One

Preface

Background of the Study

A near look at institutions in our society shows that a lot of businesses are folding up due to fraudulent acts. Both the operation and the workers indulge in conditioning that can bring down an institution, and ignorance of the places of an internal adjudicator is also a problem. Adjudicators give a fair account of the fiscal statement of an institution as put together by both the operation and workers.

Internal control is of important significance in achieving a company’s pretensions and objects. Internal control helps institutions carry out step- by- stepprocesses, provident procedures, accurate and competent conduct in order to be effective and effective in its directorial places( Connor, 1979p6). An association can achieve threat operation, chastened processes and evaluation of its conditioning through internal control.

fiscal institutions are swamped with fraudulent conditioning and there’s a need for the presence of internal adjudicators to help point out these excrescencies and leakages. Internal adjudicators are granted the honor by the elderly operation of the bank to interrogate any member of staff, go through lines, reports, and indeed twinkles of meetings in carrying out their assignments. It’s anticipated of the internal adjudicator on going through the information gotten; advise the institution meetly by reporting directly to the governor of the institution. An effective internal inspection control doesn’t only checkmate surpluses, but engages in directorial control( Dandago, 2002).

The purpose of the internal adjudicator is to examine the strengths and sins in the internal control of the programs of an institution that can lead to undetected fraud and point them out for corrective measures.

Frauds are common in institutions, though veritably common in banks; that’s why internal controls are done in banks to control losses and indeed help the circumstance of losses.

Internal control has spoilt the business of bank directors who engage in fraud and indeed Nigerians ’ character in the transnational community.

Conclusively, the conditioning of bank fraud are adding as the day goes by, and banks who can not put measures in place to control this will deteriorate( Adeduro, 1998p48). thus, this study is meant to discover the places of internal adjudicators in fraud discovery and forestallment in banks in Nigeria( a case study of Skye bank plc).

Statement of the general problem

Nigeria’s character is stained in the transnational community as it’s known to be a loose nation; cases of fraud in every sector of the frugality including the fiscal institution. People aren’t honest in the duties assigned to them because of their particular interests.

Poor operation of bank institutions has led to their overdue pack- up. operation and indeed employeesembezzle finances, falsify numbers, and don’t keep accurate records of fiscal statements all give rise to fraud in the banking assiduity.

In addition, our poor judicial system contributes to fraud. Fraudsters aren’t bedeviled as they know with fix they can escape the full wrath of the law and similar cases will be swept under the carpet.

Points/ Objects Of The Study

The major ideal of this study is to know the places of internal adjudicators in fraud discovery and forestallment in banks in Nigeria; a case study of Skye bankplc.

Other specific objects include

To determine how effective Skye bank’s internal control system is.

To determine the relationship between internal adjudicators and fraud in banks.

To determine if internal adjudicators alone can help fraud in Nigeria banks.

To determine how transparent and effective internal adjudicators are in detecting and precluding fraud in Nigeria banks.

Exploration Questions

How effective is Skye bank’s internal control system?

What’s the relationship between internal adjudicators and fraud in Nigeria?

Can internal adjudicators alone help fraud in Nigeria banks?

How transparent and effective are internal adjudicators in detecting and precluding fraud in Nigeria banks?

exploration thesis

Ho Skye bank doesn’t have an effective internal control system.

Hi Skye bank has an effective internal control system.

Significance/ Defense Of The Study

This study is of immense significance to the general public with special significance to Nigeria banks.

numerous Nigerians are ignorant on who adjudicators are and the places they play in bridling fraud in the banking sector. It’s meant to bring to the knowledge of business possessors that adjudicators should be involved in the operation function of their enterprises.

still, this study is meant to encourage banks to have a commission of internal adjudicators who’ll help check losses, help losses, and offer advises on how a bank can have an accurate fiscal statement.

This study will be of immense benefit to other experimenters who intend to know more on this content and can also be used bynon-researchers to make further on their work. This study contributes to knowledge and could serve as a bench mark or guide for other work or study.

Compass/ Limitations Of The Study

This study is confined to the part of internal adjudicators in fraud discovery and forestallment in banks in Nigeria, with Skye bank plc as the case study.

Limitations of the Study

fiscal constraint Insufficient finances posed a challenge on the experimenter in the course of gathering this information.

Time constraint Grounded on the fact that theresearcher has to combine his study with other academic work, it hindered the time devoted to the exploration work.

Description Of Terms

Role The position or purpose that someone or commodity has in a situation, association, society, or relationship.

Internal Auditing Is an independent, objective assurance and consulting exertion designed to add value and ameliorate an association’s operations. It helps an association negotiate its objects by bringing a methodical , disciplined approach to estimate and ameliorate the effectiveness of threat operation, control, and governance processes. Internal auditing is a catalyst for perfecting an association’s governance, threat operation, and operation controls by furnishing sapience and recommendations grounded on analyses and assessments of data and business processes. With a commitment to integrity and responsibility, internal auditing provides value to governing bodies and elderly operation as an objective source of independent advice. Professionals called internal adjudicators are employed by associations to perform the internal auditing exertion.

FraudThis is a deliberate deception, wile, or cheating intended to gain an advantage.