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The Impact of Internal Control Measures on the Detection and Prevention of Fraud in Banks (A Case Study of Fifteen (15) Selected Deposit Money Banks in Nigeria)

Prof. Madubuko Cyril Ubesie, Ngozi Ibezim & Mgbobi Cyriacus

Abstract

This paper explores the impact of internal control measures on the detection and prevention of fraud in Banks. Primary data were used for this study. This study was carried out by collecting data from 15 quoted Deposit money banks in Nigeria as at March, 2022. The model of used for the study was least square regression. It was observed that strong internal control system, good corporate governance, and compliance with banking ethics have positive and significant influence on fraud prevention in banking industry. This indicates that a commitment in the implementation of the variables of this study will reduce fraud, errors and misappropriations in banking sector. The study recommended that banking institutions should establish and ensure effective and strict implementation of all these variables which is strong enough to prevent fraud, errors and misappropriations.

Keywords

Fraud TriangleInternal Control SystemCorporate GovernanceCompliance with Banking Ethics

References

Adeyanju, O.D. (2014). Code of ethics and professionalism: Implication for bank failure in Nigeria. Research Journal of Finance and Accounting 5(19), 75 – 86. Aguolu, O. (1998). Fundamentals of Auditing. Ajala, O.A., Amuda, T., &Arulogun, L. (2015). Evaluating internal control system as a preventive measure of fraud in the Nigerian banking sector. International Journal of Management Science and Business Research, 2(9), 15 – 22. Anderson, D., Francis J.R., and Stokes, D.J. (1993). Auditing, directorships and the demand for monitoring. Journal of Accounting and Public Policy, 12(4) 353 – 375. Aron, B. (2006). Ethics and decision making for interpreters. Retrieved 15 th Sept 2016, from http://www.scu.edu/ethics/practicing/decision/whatisethics.html.

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