Open AccessFraud Detection and Internal Control Measures in Deposit Money Banks Listed on the NSE
Author(s) -
Alhassan Haladu
Publication year - 2018
Publication title -
international journal of science and management studies
Language(s) - English
Resource type - Journals
ISSN - 2581-5946
DOI - 10.51386/25815946/ijsms-v1i4p106
Subject(s) - accrual , accounting , control (management) , internal audit , business , proxy (statistics) , internal control , audit , risk control , actuarial science , operations management , risk management , finance , computer science , engineering , management , economics , earnings , machine learning
This study examine the internal control measures for fraud prevention and detection in Deposit Money Banks (DMBs) listed on the Nigerian Stock Exchange (NSE). Data collected were from both primary and secondary sources using annual financial reports and questionnaire for the respondents of all listed DMBs in Nigeria. Analysis was mainly done by regression of the internal control measures and fraud in DMBs. Internal control measures proxies are control environment, risk assessment and control activities. On the other hand, fraud prevention and detection proxy is discretional accruals. The analysis found out that the internal control measures of control environment, risk assessment, and control activities have negative influence on fraud detection and prevention (discretional accruals). However, the influence of risk assessment is not significant. It was therefore recommended that an overhaul of the management and internal control systems currently being operated by DMBs in Nigeria be done to make it strictly in line with IFRS standards and guidelines. Furthermore, this should be backed by the introduction of forensic auditing and assurance to make offenders not only liable for their actions; but also subject to legal prosecution as well.