Select Currency
Translate this page

THE IMPACT OF AUDITING IN CONTROLLING FRAUD AND OTHER FINANCIAL IRREGULARITIES

Format: MS WORD  |  Chapter: 1-5  |  Pages: 57  |  3683 Users found this project useful  |  Price NGN5,000

  DOWNLOAD THE FULL PROJECT

THE IMPACT OF AUDITING IN CONTROLLING FRAUD AND OTHER FINANCIAL IRREGULARITIES

 

ABSTRACT

Fraud in the Nigerian Banking Industry before the recent merger, acquisition and recapitalization efforts was at alarming rate. It has caused many banks to collapse, and many investors and depositors’ funds were trapped in. In fact, it has prevented many banks from achieving their goals and many businesses went into liquidation. Honestly speaking it has become a cankerworm that has eating deep into the financial sector of the Nigerian economy. That calls for the need for this study and the purpose of this study therefore is to identify the causes of fraud, measure its impact and identify the means of controlling it. The study is a survey research and questionnaire was used for the collection of primary data. Questionnaires were administered to staff of First Bank of Nigeria PLC. Chi-square was used in analyzing data. The findings show that lack of adequate training, communication gap, and poor leadership skills were the greatest causes of fraud in Nigerian banking industry. It was concluded that adequate internal control system should be put in place and that workers satisfaction and comfort should be taking care of.

 

CHAPTER ONE

INTRODUCTION

Background of the Study

According to Gay, Schelluh and Reid 2007, an auditor has the responsibility for the prevention, detection and reporting of fraud, other illegal acts and errors is one of the most controversial issues in auditing, and has been one of the most frequently debated areas amongst auditors, politicians, media, regulators and the public. This debate has been especially highlighted by the collapse of both small and big corporations across the globe. The auditing profession in Nigeria has caught the media’s attention following financial scandals in some of the Nigerian banks such as Intercontinental Bank, Oceanic Bank, Afri Bank, and Bank PHB among others. There seems presently to be a misconception that auditors’ duties are largely the preventing, detecting and reporting of fraud, for example, Idris (2009). The aim of this study is to identify financial report users’ perceptions of the extent of fraud and financial irregularities in first bank of Nigeria plc, and to determine their perceptions of the auditor’s responsibilities in detecting fraud and other financial irregularities and the performance of related audit procedures in first bank. The project also aims to ascertain whether the report users’ perceptions of auditors’ responsibilities on fraud and other financial irregularities are consistent with those of the auditing profession as expressed in auditing standards in Nigeria.

Bank organizations in Nigeria perform a variety of tasks and responsibilities not only for transformation agenda but also to enable it to function in an effective manner. These tasks and responsibilities are distributed among teams, which are assigned to fulfil their duties in a specific organisation. All designated tasks are equally important in Nigerian Banks, thus, making all employees and staff crucial to the operations of the bank. One of the crucial functions in these organizations is the process of auditing especially in the cases of fraud and irregularities. It has been reported that an audit is an evaluation of an organization, system, process, project or product, which involves the independent and fair assessment of the financial statements of the organization. Knowledgeable, independent, and objective individual or group of individuals, known as auditors or accountants, makes a report based on the results of the audit. In addition, this function is performed to determine the reliability and validity of financial information, and to present an evaluation of a specific company or an internal control of a particular business system, for these systems must comply with the generally accepted standards laid down by national governing bodies for regulation (Power, Walsh, & O’Meara, 2001). Because of such importance, this project seeks to consider the effect of fraud and irregularities on first bank performance in Nigeria and its control.

In accordance to fraud and irregularities on banks performance in Nigeria, auditing and financial evaluation are crucial since it reflect on how their respective administrators manage the flow of their income, assets and transactions. For this reason, banks in Nigeria should hire several experts to do the auditing and financial evaluations.  Aside from hiring accountants and auditors that will work for them internally, they also need to seek help of other experts to avoid biasness and also in order reveal the genuine stability of the entity being audited (Jones and Pendlebury, 2000). According to Arter, (2012), these people are called independent auditors’ expert or sometimes called external auditors. Basically, external auditors/accountants are audit experts who perform an audit on the financial statements of a government, company, individual, or any other legal entity (Cameron, 1982).  As stated previously, these people are working independently to present an unbiased and independent evaluation on such entities. In comparison to internal auditors, external auditors’ primary responsibility is assessing the risk management practices and strategy, management and governance processes of an entity.  These experts usually does not express any opinion on the entity's financial statements, they just evaluate and never do such recommendations. Similar to internal auditors, independent auditors are considered by the public service sector and other organisations to take a look at financial statement to confirm they are free of errors and obvious misstatements (Arter, 2012).

Statement of the Problem

Basically, fraud and irregularities occurring among banks in Nigeria created significant effect.  This event may result to business failure or worst bankruptcy.  Aside from this, fraud & irregularities could also have significant effect to capital market, capital structure, Efficiency Market Hypothesis and credit ratings. In accordance to the impact on control environment and internal controls within Banks in Nigeria, the independent auditor has a number of affirmative responsibilities. According to the Jones and Pendlebury (2000), firstly, the independent auditor must be precise in strategies to find out and report the bank's genuine financial position. Secondly, as a representative for the public, the independent auditor must stay independent of the management of the bank. The independent auditor owes the independence duty to the shareholders of the bank, the public and the board of directors.  Thirdly, the independent auditor must completely reveal all material features of the financial condition of the bank. The independent auditor duty of disclosure requires them to reject an improper engagement, report cheating, and place a caution on statements pertaining to the ability and liquidity of the company to continue as a going concern.

In independent auditor experts’ affirmative duty to discover irregularities and material errors, including fraud, the independent auditor fulfils a function that the public considers the independent auditor's most significant role (Monaghan 1989).  According to Harvey, (1990), fraud does not become visible on the face of bank's records, but frequently signs of it will likely in the form of irregularities, and, hence, the auditor can only divulge fraud by closely examining irregularities.  Whereas the Statements of Auditing Standards (SAS) according to Arter, (2002) asserts the independent auditor's clear liability to identify management fraud, that same SAS does not oblige the auditor to guarantee the accuracy of the firm's financial statements.

Objectives of the Study

The objectives of this study are to:

•     Examine and report in writing of opinion on the truth and fairness of the financial statements so that anybody reading and or using the financial statements can belief in them.

•     Attest to the fairness of the financial statements and compliance with laws, regulations and the effectiveness of controls.

•     To gather sufficient evidence so as to be able to form an opinion on the accuracy and correctness of the financial statement. 

•     To provide credibility to financial information that can be relied upon by outsiders, such as stockholders, creditors, government regulators, customers and other interested third parties.

•     To prevent errors and fraud by the deterrent and moral effect of the audit.

Research Questions

The above objectives will be guided by the following questions:

•     What are the auditors’ duties towards fraud?

•     What should auditors’ do if he discovers an irregularity in the form of material error or fraud?

•     What options do auditors’ have if they detect a fraud by management?

•     What effect does lack of auditing have in the banking industry?

Significance of the Study

This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.

Scope of the Study

This study is on the impact of auditing in controlling fraud and other financial irregularities.

Limitations of the study

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

  DOWNLOAD THE FULL PROJECT

THE IMPACT OF AUDITING IN CONTROLLING FRAUD AND OTHER FINANCIAL IRREGULARITIES

Not The Topic You Are Looking For?



For Quick Help Chat with Us Now!

+234 813 292 6373

+233 55 397 8005


HOW TO GET THE COMPLETE PROJECT ON THE IMPACT OF AUDITING IN CONTROLLING FRAUD AND OTHER FINANCIAL IRREGULARITIES INSTANTLY

  • Click on the Download Button above.
  • Select any option to get the complete project immediately.
  • Chat with Our Instant Help Desk on +234 813 292 6373 for further assistance.
  • All projects on our website are well researched by professionals with high level of professionalism.

Here's what our amazing customers are saying

Peace From Unilag
I cried not knowing how to go about my project but the day i searched online and saw iprojectmaster, i called and got my full project in less than 15minutes, i was shocked!
Excellent
MATTHEW NGBEDE
Ahmadu Bello University
I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!
Excellent
Adam Alhassan Yakubu
UDS
Excellent work and delivery , I promise to share my testimonies everyone in need of this kind of work. You're the best
Excellent
Joseph M. Yohanna
Thanks a lot, am really grateful and will surely tell my friends about your website.
Excellent
Musa From Ahmadu Bello University
Thank you iprojectmaster for saving my life, please keep it up and may God continue to bless you people.
Excellent
Stancy M
Abia State University, Uturu
I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much iprojectmaster, infact, I owe my graduating well today to you guys...
Excellent
Merry From BSU
I am now a graduate because of iprojectmaster.com, God Bless you guys for me.
Excellent
Abdulrahman Jibrin
Nti Abaji
Nice one work prompt delivery tanx
Very Good
Gbadamosi Solomon Oluwabunmi
Lasu
Swift delivery within 9 minutes of payment. Thank you project master
Excellent
Emmanuel Essential
Kogi state University
I actually took the risk,you know first time stuff But i was suprised i received as requested. I love you guys 🌟 🌟 🌟 🌟
Very Good

FREQUENTLY ASKED QUESTIONS

How do I get this complete project on THE IMPACT OF AUDITING IN CONTROLLING FRAUD AND OTHER FINANCIAL IRREGULARITIES?

Simply click on the Download button above and follow the procedure stated.

I have a fresh topic that is not on your website. How do I go about it?

How fast can I get this complete project on THE IMPACT OF AUDITING IN CONTROLLING FRAUD AND OTHER FINANCIAL IRREGULARITIES?

Within 15 minutes if you want this exact project topic without adjustment

Is it a complete research project or just materials?

It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data

What if I want to change the case study for THE IMPACT OF AUDITING IN CONTROLLING FRAUD AND OTHER FINANCIAL IRREGULARITIES, What do i do?

Chat with Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

How will I get my complete project?

Your Complete Project Material will be sent to your Email Address in Ms Word document format

Can I get my Complete Project through WhatsApp?

Yes! We can send your Complete Research Project to your WhatsApp Number

What if my Project Supervisor made some changes to a topic i picked from your website?

Call Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

Do you assist students with Assignment and Project Proposal?

Yes! Call Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately

What if i do not have any project topic idea at all?

Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: +234 813 292 6373

How can i trust this site?

We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!