INTERNAL CONTROL SYSTEM: A VERITABLE TOOL FOR FRAUD’S PREVENTION AND DETECTION IN NIGERIAN DEPOSIT MONEY BANKS (DMB)
This paper explores the relationship between internal control system risk assessment and fraud detection and prevention as well as assess the impact of internal control system management climate on fraud detection and prevention at Nigerian Deposit Money Banks. The study followed the concept of descriptive research surveys. It gathered data by using questionnaires as well as secondary sources. The population of this research work includes eighty-nine thousand, two hundred and seventy-five (89,275) staff members in the twenty DMBs listed on Nigerian Stock Exchange as of December 31, 2019. Purposive sampling technique was adopted in the selection of 84 respondents from Nigeria's 21 deposit money banks as specified on the date consisting of 4 respondents from each bank. There were a total of 84 questionnaires distributed out of which 76 were collected. In the study, basic frequency table, Pearson's coefficient of correlation, and descriptive statistics were used. Proxies of internal monitoring systems are monitor surroundings and risk evaluation. The study findings showed that: there is a significant relationship between the internal control system and the prevention and detection of fraud in Nigerian DMB. The study recommends that: the management of Nigerian DMB should develop and implement a standard internal control system that is strong enough to stand up to fraud wiles in order to promote continuity of operations. Continuous and rigorous training programs should be in place to ensure the liquidity, solvency and ongoing concern of banks and internal auditors in order to gain adequate knowledge of fraud prevention and detection in the Nigerian banking sector.
Internal control system, fraud, prevention and detection, risk assessment, control environment, and deposit money banks