APPRAISAL OF FRAUD CONTROL TECHNIQUES IN NIGERIAN COMMERCIAL BANKS (A CASE STUDY OF FIRST BANK NIGERIA PLC) (ENUGU AND ONITSHA BRANCHES)
APPRAISAL OF FRAUD CONTROL TECHNIQUES IN NIGERIAN COMMERCIAL BANKS
(A CASE STUDY OF FIRST BANK NIGERIA PLC)
(ENUGU AND ONITSHA BRANCHES)
ABSTRACT
Fraud is the number one enemy of the business world. No Company is Immune to it. It is in all walls of life. No where is fraud more serious than in banking, it is the biggest single cause of bank failure.
The intent of this research is to evaluate the fraud control techniques in commercial banks in Nigeria. As the techniques is aimed at controlling the cause and effect of fraud. Two branches if First Bank were used for the study on the understanding that first Bank s a corporate entity has formulated and devised fraud control techniques that is made applicable to all its branches throughout the country. The choice of First Bank as a case study is based on the understanding that most banks in Nigerian have simpler strength and weakness.
In pursuit of the above goal of the research, the researcher administered two types of questionnaire one to the top management of the bank and the other to the Middle and lower Management staff. Some customers were Interviewed Orally to obtain additional information and also to confirm the result obtained through the questionnaire.
The response from the questionnaire and Interview were analyzed and Interpreted. The results obtained were portrayed by means of pie chart, bar chart and tables for simple understanding.
From the analysis and interpretation for the data, the researcher found out that the fraud control techniques in use by commercial banks in Nigeria are not efficient and effective. Different types of fraud still exist.
It is well noted that fraud as a concept is waxing in strength. It is becoming an expanding Industry.
Based in these findings the researcher has made serious efforts to push back the frontier of human ignorance about fraud by suggesting new fraud control techniques as to total eradication of fraud cannot be attained.
CHAPTER ONE
CHAPTER TWO
2.1 Concept of fraud
CHAPTER THREE
3.1 Population and sample
CHAPTER FOUR
4.1 Re-Statement of the problems
CHAPTER FIVE
5.1 Discussion of Findings
Appendix
Bibliography.
CHAPTER ONE
INTRODUCTION
The bulk of fund required by the investing sector of most developed or developing business economic of the world is provided by the banking Industry in the main services of mobilizing fund from the saving that is surplus to the investing sector provided by the banking Industry, accounted for the high status the banking Industry is placed in the development of any economy, the rate of economic development of the nationals has hence very closely associated with the effectiveness and efficiency of the banking system of the nation.
Commercial banks as a case study of this research work provides service like acceptance of deposits, safe keeping of valuables, offering of pieces of advice like on investment credit creation and other business published in the gazette by the governor of central bank designated to mean commercial banking business of all the components of the banking system, Incidence of fraud occurrence, fraud is also found in other spheres of life, in government and Industries. Special organisation have been formed to control this fraud. Interlope tries to deal with it at the international level but it has not been rechecked to the barest minimum, neither has it been full eradicated.
The word fraud is a complex Universal phenomenon, it is rampant in both developed and developing countries and varies across time and placed in its magnitude, its effects on administrative, performance and development, political economical, social cultural and attitudinal factors combine in contributive and the extend beyond the boundaries of nation state.
Fraud is matter of individual choice and opportunity, being human, he is reasonably connived he can get always with it.
The banking sector provides such opportunity in abundance’s s they deal with cash and near money instrument.
In the history of Nigerian banking, if 200 banks were registered by the financial secretary tot he colonial administration to carry out banking business, from the year 1892 – 1952 was know as the era of free for all banking. Between this period banking business blossomed, there way high expectations that trend will continue to improve as a matter of time. But if become in expectation never observed. As in the first half of 1950’s the Industry collapsed many banks folded up and those that survived from N351.93 million in 1992, the amount involved in frauds in commercial banks alone rose to N1, 377.15 Million in 1993 whereas the actual or expected loss rose from N 64.8million to N 241.0 million.
We are aware that frauds cut across all sectors of the economy and that the size of an enterprise usually determines the volume of fraud perpetrated. We are also aware of manpower and manpower training poor internal control system, inadequate incentive and unsuitable legal framework for dealing with offenders, playing the perpetration of frauds.
In addition to these, the lack of commitment on the part of staff and the employment policies of some banks tend to make frauds and forgeries attractive.
Now we are considering the higher rate of fraud in banks as clearly unacceptable, some thing Adriatic ought to be done so urgently stem the tide in view of its image implications for the banking Industry and the cruses of confidence which it could engender among bank customers.
We therefore urge executive and to management of banks to as a matter of Urgency to adopt strategies that will block all loopholes that encourage frauds in their organization.
In specific terms, we counsel that banks should critically examine options for prevention and timely detection of frauds and forgeries as these are likely to scare would be perpetrator’s adequate internal control such as re-deployment of staff and short interval without notice should be put in place. Staff should be kept abreast of sophisticated and other developments through which training continuous.
Banks staff should be adequately remunerated and novitiates to give their best while waiting with satisfaction. Poorly remuneration in a banking environment may constitute a menace to the system as temptations are likely to be quilted and the urge to a succumb becomes irresistible.
I believe that computerization can go a long way as a strategy for internal control in banking I therefore urge all banks to embrace and install computers in their organisations. Banks must always build into their plans at the beginning of then years- Based in their experiences the expected amount of loss through fraud during the year in order to anticipate and guard against destabilization of their operations.
No effort should be spared tin the fight against this hydra-headed phenomenon in order to reduce to the barest minimum the crisis of confidence that frauds occasion.
The Nigerian Banker believes that the time to act is today.
Fraud in banks has become so recurrent in the headlines of our daily papers in such a profuse manner that they have ceased to be good captions on these papers in going through papers one flip over pages with headlines of fraud. That not with standing. Fraud committed has direct or indirect effect on individuals or collectively. On the whole fraud had contributed to the Liquidation of so many banks.
Many bank employees have been deprived of their benefits and in liquidation situations, total loss of their jo is observed on as well, the shareholders of the banks loss their money.
Alongside, the great role of the banking Industry play (which is being challenged by fraud is through loss of fund and liquidation of bank). With the degree of fraud observed now, if allowed to thrive without he development of now control techniques to prune down the incidence of fraud occurrence in the banking system, the future of the Nigerian economy is bound to fail.
Recognition of the aforementioned facts the researcher intends to punch back the frontier of human ignorance (Investigation) by evaluating the fraud control techniques employed by commercial bank in Nigeria.
The effectiveness and efficiency of the techniques will be looked at critically.
Equally, the concepts of fraud, causes of fraud, types and effect of fraud will be viewed.
The objectives of this study s to evaluate the degree of effectiveness and efficiency of fraud control techniques employed by commercial banks in Nigeria (the strength and weakness of these techniques).
This study also will determine the extend by which bank management intends to land fast or take to new fraud control of interest bank management has put in handling cases of fraud.
There is one major hypothesis that forms the root of this study. The findings will leave to acceptance of rejection of these hypothesis ie null hypothesis (Ho) which will be rejected to accept the alternative hypothesis (Hi), for the purpose of this study the under listed statement of hypothesis will be tested.
Alternative hypothesis (Hi): fraud control techniques employed by first banks is effective.
Alternative hypothesis (Hi): fraud in commercial bank can be eliminated.
The intention of this research work is to help relegate the incidence or menace of fraud to a minimal level nearer to extermination. Therefore, this research work will be of Immense help to all commercial banks operating in Nigeria.
Equally, it will be of great help to other disciplines of endeavour that have the need to control the incidence of fraud.
The recommendations and suggestions made in this research if employed by commercial banks will help in controlling the menace of fraud. With positive and proper utilization of the suggestions and recommendation, efficiency and effectiveness in banking business wild be forestall and no doubt, the lost glory of bank will be restored.
Also, the research work will be a great material to students, bankers that wish to conduct further study on fraud generally, or even as a diversion and limiting it to. Commercial and other banks and any other related discipline. Fraud control techniques which this research work is basically carries on, is a diversion from the central concept (FRAUD). It will also be of good help to small scale industries who are planning to improve in their business. Also to limited liability companies in order to defect and control fraud easily in the organisation.
This research will also be of good help to government. It will enable government to defect fraudsters in the society as well as preventing the incidence of fraud entirely.
The scope of this research work covers all commercial banks, other banks, related discipline and companies. The scope is board, only specific emphasis is made on commercial banks subject to the fact that incidence of fraud is pronounced in commercial banks and as such enough revelation is made about the kinds of fraud carried out in commercial banks then other discipline.
LIMITATIONS OF THE STUDY
Despite the efforts put this research work, certain constraint have been encounted.
These areas follows:
However, efforts was made to ensure an equitable representations of the towns by the use of sound and effective sampling techniques.
Moreso, it is believed that most of the commercial banks in Nigeria have the same method of operations, thereby the needs of their research will be met from the study of the sample of the two branches of first bank situated in Enugu and Onitsha respectively.
FRAUD
The term fraud is used sparingly in (practical) auditing. The preferred term is irregularity. Fraud however, is defined as the Intentional distortion of the financial such as the misappropriation of assets. The term fraud is used when it refers to irregularities involving criminal deception to obtain an illegal or unjust advantages. It may be perpetrated with the intention of making money or obtaining goods or it may be perpetrate when a person deceive other by pretending to have abilities or skills that he does not relay have.
The existence of fraud is an indication that proper accounting records have not been kept, weakness exist in the system of internal control and the financial statement do not show a true and fair view.
CONTROL: This simply means check or prevention or to put to an end. Internal controls are design part to defect and control fraud. The management has a duty to ascertain the banking system of recording and processing transaction and asses its adequacy as a basis for the preparation of financial statement. In so doing, he will inevitable examine also the internal control since they are inextricably linked with the system of recording and processing.
The management may wish to place reliance on some Internal control and must of them ascertain and evaluate those controls and perform compliance tests on their operation this the management is most likely to acquire some knowledge of the existence and effectiveness of internal control and its knowledge may be very extensive.
This review of internal control may indicate potential or actual instances of fraud which may lead to management determining by audit tests if fraud has taken place and to what extent. In any event the management should pass information on any potential or actual fraud in the management letter.
TECHNIQUES
Techniques is the method used in controlling fraud in the bank and other financial Institution.
The responsibility for prevention of fraud rest with the management. Therefore the method used by management to control fraud are stated below.
COMMERCIAL BANKS
Commercial banks are privately owned banks. They are established for the purpose of making profit for their owners. Commercial banks accept deposits from the public and use their funds to lend at call and short notice tot he discount market to acquire treasury bills.
Short and medium term government securities, to invest in other financial institution and most important, to make advancers to customers.
A most important feature of commercial banking is that the banking system as a whole is confined to accepting deposits in order o lend and acquire securities. Apart from accepting deposit commercial bank grant loan and overdraft to their customers, discounting bills of exchange, finance hire purchases transaction and other miscellaneous services.
REFERENCES
Dr Orjih John (2004): Business research Methodology
Aguolu Osita (1998): Fundamentals of auditing.
Millichamp. A H . (1990): Auditing An Instruction manunal
for accounting students.
Nwabueze C. C (2000): Principles of corporate financial
Management.
Journal of charted Instituted of Bankers of Nigeria.
July-December 1994.
Download our android mobile app for more materials
ORDER NOW
COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
(A CASE STUDY OF FIRST BANK NIGERIA PLC)
(ENUGU AND ONITSHA BRANCHES)
ABSTRACT
Fraud is the number one enemy of the business world. No Company is Immune to it. It is in all walls of life. No where is fraud more serious than in banking, it is the biggest single cause of bank failure.
The intent of this research is to evaluate the fraud control techniques in commercial banks in Nigeria. As the techniques is aimed at controlling the cause and effect of fraud. Two branches if First Bank were used for the study on the understanding that first Bank s a corporate entity has formulated and devised fraud control techniques that is made applicable to all its branches throughout the country. The choice of First Bank as a case study is based on the understanding that most banks in Nigerian have simpler strength and weakness.
In pursuit of the above goal of the research, the researcher administered two types of questionnaire one to the top management of the bank and the other to the Middle and lower Management staff. Some customers were Interviewed Orally to obtain additional information and also to confirm the result obtained through the questionnaire.
The response from the questionnaire and Interview were analyzed and Interpreted. The results obtained were portrayed by means of pie chart, bar chart and tables for simple understanding.
From the analysis and interpretation for the data, the researcher found out that the fraud control techniques in use by commercial banks in Nigeria are not efficient and effective. Different types of fraud still exist.
It is well noted that fraud as a concept is waxing in strength. It is becoming an expanding Industry.
Based in these findings the researcher has made serious efforts to push back the frontier of human ignorance about fraud by suggesting new fraud control techniques as to total eradication of fraud cannot be attained.
CHAPTER ONE
- Introduction
- A short back ground/history of fraud
- Statement of problem
- Research and Objectives
- Research /Hypothesis
- Research/Questions
- Significance of the study
- Scope /Limitation of the study definition of terms
- Definition of terms
- References
CHAPTER TWO
- Review of related Literature
2.1 Concept of fraud
- Causes of fraud
- Types of fraud
- Effects of fraud
- Control of fraud
- References
CHAPTER THREE
- Research Design and Methodology
3.1 Population and sample
- Sources of data
- Instrument for data Collection
- Method of data analysis
- Research question
- Method of testing hypothesis
CHAPTER FOUR
- Presentation and Analysis of Data
4.1 Re-Statement of the problems
- Major findings
- Distribution of questionnaire and collection
- Presentation and analysis of questionnaire
- Presentation and analyses of Oral Interview
- Test f hypothesis
- Interpretation of Research
CHAPTER FIVE
- Summary of Finding Recommendation and Conclusion
5.1 Discussion of Findings
- Conclusion
Appendix
Bibliography.
CHAPTER ONE
INTRODUCTION
The bulk of fund required by the investing sector of most developed or developing business economic of the world is provided by the banking Industry in the main services of mobilizing fund from the saving that is surplus to the investing sector provided by the banking Industry, accounted for the high status the banking Industry is placed in the development of any economy, the rate of economic development of the nationals has hence very closely associated with the effectiveness and efficiency of the banking system of the nation.
Commercial banks as a case study of this research work provides service like acceptance of deposits, safe keeping of valuables, offering of pieces of advice like on investment credit creation and other business published in the gazette by the governor of central bank designated to mean commercial banking business of all the components of the banking system, Incidence of fraud occurrence, fraud is also found in other spheres of life, in government and Industries. Special organisation have been formed to control this fraud. Interlope tries to deal with it at the international level but it has not been rechecked to the barest minimum, neither has it been full eradicated.
The word fraud is a complex Universal phenomenon, it is rampant in both developed and developing countries and varies across time and placed in its magnitude, its effects on administrative, performance and development, political economical, social cultural and attitudinal factors combine in contributive and the extend beyond the boundaries of nation state.
Fraud is matter of individual choice and opportunity, being human, he is reasonably connived he can get always with it.
The banking sector provides such opportunity in abundance’s s they deal with cash and near money instrument.
- A SHORT BACK GROUND /HISTORY OF FRAUD IN FIRST BANK
In the history of Nigerian banking, if 200 banks were registered by the financial secretary tot he colonial administration to carry out banking business, from the year 1892 – 1952 was know as the era of free for all banking. Between this period banking business blossomed, there way high expectations that trend will continue to improve as a matter of time. But if become in expectation never observed. As in the first half of 1950’s the Industry collapsed many banks folded up and those that survived from N351.93 million in 1992, the amount involved in frauds in commercial banks alone rose to N1, 377.15 Million in 1993 whereas the actual or expected loss rose from N 64.8million to N 241.0 million.
We are aware that frauds cut across all sectors of the economy and that the size of an enterprise usually determines the volume of fraud perpetrated. We are also aware of manpower and manpower training poor internal control system, inadequate incentive and unsuitable legal framework for dealing with offenders, playing the perpetration of frauds.
In addition to these, the lack of commitment on the part of staff and the employment policies of some banks tend to make frauds and forgeries attractive.
Now we are considering the higher rate of fraud in banks as clearly unacceptable, some thing Adriatic ought to be done so urgently stem the tide in view of its image implications for the banking Industry and the cruses of confidence which it could engender among bank customers.
We therefore urge executive and to management of banks to as a matter of Urgency to adopt strategies that will block all loopholes that encourage frauds in their organization.
In specific terms, we counsel that banks should critically examine options for prevention and timely detection of frauds and forgeries as these are likely to scare would be perpetrator’s adequate internal control such as re-deployment of staff and short interval without notice should be put in place. Staff should be kept abreast of sophisticated and other developments through which training continuous.
Banks staff should be adequately remunerated and novitiates to give their best while waiting with satisfaction. Poorly remuneration in a banking environment may constitute a menace to the system as temptations are likely to be quilted and the urge to a succumb becomes irresistible.
I believe that computerization can go a long way as a strategy for internal control in banking I therefore urge all banks to embrace and install computers in their organisations. Banks must always build into their plans at the beginning of then years- Based in their experiences the expected amount of loss through fraud during the year in order to anticipate and guard against destabilization of their operations.
No effort should be spared tin the fight against this hydra-headed phenomenon in order to reduce to the barest minimum the crisis of confidence that frauds occasion.
The Nigerian Banker believes that the time to act is today.
- STATEMENT OF PROBLEMS
Fraud in banks has become so recurrent in the headlines of our daily papers in such a profuse manner that they have ceased to be good captions on these papers in going through papers one flip over pages with headlines of fraud. That not with standing. Fraud committed has direct or indirect effect on individuals or collectively. On the whole fraud had contributed to the Liquidation of so many banks.
Many bank employees have been deprived of their benefits and in liquidation situations, total loss of their jo is observed on as well, the shareholders of the banks loss their money.
Alongside, the great role of the banking Industry play (which is being challenged by fraud is through loss of fund and liquidation of bank). With the degree of fraud observed now, if allowed to thrive without he development of now control techniques to prune down the incidence of fraud occurrence in the banking system, the future of the Nigerian economy is bound to fail.
Recognition of the aforementioned facts the researcher intends to punch back the frontier of human ignorance (Investigation) by evaluating the fraud control techniques employed by commercial bank in Nigeria.
The effectiveness and efficiency of the techniques will be looked at critically.
Equally, the concepts of fraud, causes of fraud, types and effect of fraud will be viewed.
- RESEARCH AND OBJECTIVES
The objectives of this study s to evaluate the degree of effectiveness and efficiency of fraud control techniques employed by commercial banks in Nigeria (the strength and weakness of these techniques).
This study also will determine the extend by which bank management intends to land fast or take to new fraud control of interest bank management has put in handling cases of fraud.
- RESEARCH HYPOTHESES
There is one major hypothesis that forms the root of this study. The findings will leave to acceptance of rejection of these hypothesis ie null hypothesis (Ho) which will be rejected to accept the alternative hypothesis (Hi), for the purpose of this study the under listed statement of hypothesis will be tested.
- Null hypothesis (Ho): fraud control technique employed by first bank is not effective.
Alternative hypothesis (Hi): fraud control techniques employed by first banks is effective.
- Null hypothesis (Ho) fraud in commercial bank cannot be eliminated.
Alternative hypothesis (Hi): fraud in commercial bank can be eliminated.
- RESEARCH QUESTIONS
- Are fraud control techniques in use by commercial banks in Nigerian effective and efficient ?
- What are the causes if fraud in commercial banks ?
- What are the effects of fraud in commercial banks ?
- What steps can be taken to improve upon the fraud control techniques in use ?
- Who are responsible for fraud commission in the banks? The top management middle management or low management or customers ?
- Are there fraud cases in Nigerian commercial banks currently ?
- Can use of computer help in controlling fraud in the commercial banks.?
- SIGNIFICANCE OF THE STUDY
The intention of this research work is to help relegate the incidence or menace of fraud to a minimal level nearer to extermination. Therefore, this research work will be of Immense help to all commercial banks operating in Nigeria.
Equally, it will be of great help to other disciplines of endeavour that have the need to control the incidence of fraud.
The recommendations and suggestions made in this research if employed by commercial banks will help in controlling the menace of fraud. With positive and proper utilization of the suggestions and recommendation, efficiency and effectiveness in banking business wild be forestall and no doubt, the lost glory of bank will be restored.
Also, the research work will be a great material to students, bankers that wish to conduct further study on fraud generally, or even as a diversion and limiting it to. Commercial and other banks and any other related discipline. Fraud control techniques which this research work is basically carries on, is a diversion from the central concept (FRAUD). It will also be of good help to small scale industries who are planning to improve in their business. Also to limited liability companies in order to defect and control fraud easily in the organisation.
This research will also be of good help to government. It will enable government to defect fraudsters in the society as well as preventing the incidence of fraud entirely.
- SCOPE/LIMITATION OF STUDY SCOPE OF THE STUDY.
The scope of this research work covers all commercial banks, other banks, related discipline and companies. The scope is board, only specific emphasis is made on commercial banks subject to the fact that incidence of fraud is pronounced in commercial banks and as such enough revelation is made about the kinds of fraud carried out in commercial banks then other discipline.
LIMITATIONS OF THE STUDY
Despite the efforts put this research work, certain constraint have been encounted.
These areas follows:
- TIME: The time given for this research work was so short that I was unable to visit most banks and other financial Institution to obtain Information. Infact, time factor is one of the major constraint I encountered in producing this research work.
- NATURE OF THE RESEARCH: This is one of the Inherent in this research work fraud is not well known to every body. Even some who heard of it can not say exactly what fraud is all about. This made it possible for proper Information not to be obtained from these people.
- UNWILLINGNESS:- Unwillingness of the respondent to offer Information’s another Limitation. For Instance banks and some financial Institution are on the Oath that no staff should disclosed certain information to Outsides. In this case, it is very possible that al the Information needed by the researcher from the bank will not be given to him. Again this issue of fraud is one of the most Information that kept secretly in the bank. Or customers who are fraudsters.
- FINANCE: Without Money, it is Impossible to carry out research work lack of enough money has contributed so much to the limitation of this research work. Some times money to buy some materials needed for the research will not be available. Non availability of transportation fare tot he area where information will
- LOCATION: Most banks are located in areas that are very far from the researchers dwelling. This make it difficult for researcher to get all the information he needed. Some of the reads to the area are very bad that the means of transportation is difficult.
- ILLITERACY:- Many Nigerians are illiterates many can neither reads nor write and this have contributed so much in the constraint of this research work.
However, efforts was made to ensure an equitable representations of the towns by the use of sound and effective sampling techniques.
Moreso, it is believed that most of the commercial banks in Nigeria have the same method of operations, thereby the needs of their research will be met from the study of the sample of the two branches of first bank situated in Enugu and Onitsha respectively.
- DEFINITION OF TERMS
FRAUD
The term fraud is used sparingly in (practical) auditing. The preferred term is irregularity. Fraud however, is defined as the Intentional distortion of the financial such as the misappropriation of assets. The term fraud is used when it refers to irregularities involving criminal deception to obtain an illegal or unjust advantages. It may be perpetrated with the intention of making money or obtaining goods or it may be perpetrate when a person deceive other by pretending to have abilities or skills that he does not relay have.
The existence of fraud is an indication that proper accounting records have not been kept, weakness exist in the system of internal control and the financial statement do not show a true and fair view.
CONTROL: This simply means check or prevention or to put to an end. Internal controls are design part to defect and control fraud. The management has a duty to ascertain the banking system of recording and processing transaction and asses its adequacy as a basis for the preparation of financial statement. In so doing, he will inevitable examine also the internal control since they are inextricably linked with the system of recording and processing.
The management may wish to place reliance on some Internal control and must of them ascertain and evaluate those controls and perform compliance tests on their operation this the management is most likely to acquire some knowledge of the existence and effectiveness of internal control and its knowledge may be very extensive.
This review of internal control may indicate potential or actual instances of fraud which may lead to management determining by audit tests if fraud has taken place and to what extent. In any event the management should pass information on any potential or actual fraud in the management letter.
TECHNIQUES
Techniques is the method used in controlling fraud in the bank and other financial Institution.
The responsibility for prevention of fraud rest with the management. Therefore the method used by management to control fraud are stated below.
- Internal Control: Internal Control are designed in part to control fraud after detecting it.
- By good Organigram:- By good Organigram we mean, good organisation, a good chart ie. A good system of internal control.
- Impending visit of both internal or external auditor
- Motivation of the workers
- By punishing fraudsters.
COMMERCIAL BANKS
Commercial banks are privately owned banks. They are established for the purpose of making profit for their owners. Commercial banks accept deposits from the public and use their funds to lend at call and short notice tot he discount market to acquire treasury bills.
Short and medium term government securities, to invest in other financial institution and most important, to make advancers to customers.
A most important feature of commercial banking is that the banking system as a whole is confined to accepting deposits in order o lend and acquire securities. Apart from accepting deposit commercial bank grant loan and overdraft to their customers, discounting bills of exchange, finance hire purchases transaction and other miscellaneous services.
REFERENCES
Dr Orjih John (2004): Business research Methodology
Aguolu Osita (1998): Fundamentals of auditing.
Millichamp. A H . (1990): Auditing An Instruction manunal
for accounting students.
Nwabueze C. C (2000): Principles of corporate financial
Management.
Journal of charted Instituted of Bankers of Nigeria.
July-December 1994.
Download our android mobile app for more materials
ORDER NOW
COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
MAKE YOUR PAYMENT INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Host Link Global Services Ltd
ACCOUNT NUMBER: 0138924237
Account Name : Host Link Global Services Ltd
ACCOUNT NUMBER: 0138924237
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
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