TABLE OF CONTENTS
1.1 Background of the study
1.2 Brief history of the case study
1.3 Statement of the problem
1.4 Purpose of the study
1.5 Significance of the study
1.6 Research Questions
1.7 Scope or delimitation of the study
1.8 Definition of terms
2.0 Literature Review
2.1 Theoretical Framework
2.2 Meaning of fraud and Error
2.3 Categories of Fraud
2.4 Liabilities of auditors in preventing fraud
2.5 Types of fraud and ways of defrauding bank
2.6 Causes of fraud
2.7 Economic cost of fraud
2.8 Detection of fraud
2.9 Prevention of fraud
3.1 Area of study
3.3 Samples and Sampling techniques
3.4 Instrument for data collection
3.5 Method of data collection
4.0 Analysis and Interpretation of Data
4.1 Analysis of Data
4.3 Analysis and Interpretation of preventive
5.0 Summary, Conclusion and Recommendation
An auditor is a person appointed by an
enterprise to express independent opinion on the financial statement of that
organization in accordance with some relevant statutory obligation.
It could be internal auditor, who
reports to the management and who is also an employee of that organization or;
External auditor, who reports to the
shareholders and also appointed by the same people and who is not an employee of
The role of auditor includes the
Expression of independent opinion on the
Prevention and detection of fraud
To evaluate the effectiveness of
internal control system in an organisation.
OF THE STUDY
business failure involving or caused by management’s illegal acts has drawn
worldwide attention on the auditor’s role and responsibilities.
issue of fraud has become a serious thought for many corporate bodies in recent
on a daily basis nowadays, the media come out with reports of frauds successful
and unsuccessful, domestic and internationally.
No part of the Nigerian economy is spared of this growing problem. And
today, more time is spent on board meetings in an attempt to find solution to
the prevailing fraudulent act among management and non-management staff.
issue of fraud and fraudulent practices in any organisation should not be
overlooked. The frequency with which it
occurs in any organisation will determinant the long term survival and growth
of the company, and of not handled with care can lead to corporate failures.
HISTORY OF FIRST BANK PLC
Bank Plc for over a century has distinguished itself as a leading financial
institution and a major contributor to the economic advancement and development
bank was incorporated as a limited liability company on March 31, 1894, with head office in Liverpool by Sir Alfred Jones, a shipping magnate. It started business in the office of Elder
Dempster & Company in Lagos
under the corporate name of the Bank for British West Africa (BBWA) with a paid
up Capital of 12,000 pounds sterling after absorbing its predecessor, the
African Banking Corporation, which was established earlier in 1892. In its early years of operations, the Bank
recorded an impressive growth and worked closely with the colonial Government
in performing the traditional functions of a Central Bank, such as issue of
space in the West African Sub-region.
justify its West African Coverage, a branch was opened in Accra, Ghana
in 1896 and another in Freetown,
Sierra Leone in
1898. These marked the genesis of the
Bank’s International Banking Operations.
The second branch of the Bank in Nigeria was in the old Calabar in
1900 and two years later, services were extended to Northern
reposition and take advantage of opportunities in the changing environment, the
bank had at various times embarked on reconstructuring initiatives. In 1957, it changed its from the Bank of
British West Africa to Bank of West Africa.
1969, the Bank was incorporated locally as the standard Bank Nigeria Limited in
line with the companies Decree of 1968.
Changes in the name of the Bank also occurred in 1979 and 1991, to First
Bank of Nigeria Limited and First Bank of Nigeria PLC respectively. In 1985, the Bank introduced a decentralized
Structure with fire regional administrations.
Bank got listed on the Nigerian Stock Exchange (NSE) in March 1971 and has won
t he NSE president’s Merit award eleven times for the best financial report in
the banking sector.
In line with the Bank’s
Mission Statement “remains true to our name by providing the best financial
Services possible” and its brand essence, “depending dynamic”, the Bank will
consistently transform itself as it forges ahead in its second century of
qualitative banking to the nation.
OF THE PROBLEM
of fraud and error in banking institution is not an uncommon or unexpected
phenomenon. It is disturbing because of
all the various problems contending the Nigeria banking industry today,
that of fraud is the most common. The
banking industry especially the commercial banks worries more about fraud
because of the damage caused on the existence of the institution. Fraud in commercial banks always lead to loss
of monies, that is, monies that belongs to the customers. Where such fraud occurs with crippling
frequency and in wholesale sizes, the bank may be forced to close down. This lead to loss of confidence in the banks
and reduced patronage.
In our kind of financial environment
where banking habit is being encouraged and developed, this could result in a
major setback, for the frequent occurrence of frauds ultimately distract the
management and leads to increased running cost.
It also brings about distortion in resource a2llocation system in the
economy, that is, fraudsters reap where others have sown. The loss, which results from the fraud,
reduce the level of resources availability which could hamper the operations of
the banks and could force a close down (liquidation) if the frequency and size
of the fraud are high.
The purpose of this study
is to examine the auditors role and responsibilities in detection and
prevention of fraud in Nigeria
need for this type of study is to find out the causes of frauds which can
ultimately lead to collapse of some industries in Nigeria.
study identifies and examines some of these causes and the effect and it
finally attempts some recommendation in order to prevent frauds and to improve
the efficiency of management of banking industries as identified in the study.
OF THE STUDY
significance of auditors role in Nigeria Banking is worthy to study in detail
with some of its essential features such as effective administration of an
economic organization, expression of independent opinion on the financial
statement and to evaluate the effectiveness of internal control system in the
The study of this research will private
information to aid the management of bank in detection and prevention of fraud
in the banking industry.
The study will
make an attempt to answer the following research questions.
RQ 1: What
are the various causes of fraud in Nigerian Banking Industries.
RQ 2: What
are the effects of such fraud on the management of the banks.
RQ 3: What
remedies are available for correction in such situations.
1.7 SCOPE OR LIMITATION OF THE STUDY
work will be limited to auditor role in preventing frauds and also the causes
of frauds and the detection of frauds would be looked into in the cause of this
The study is
strictly based on First Bank PLC therefore, collection of data and various
information will have to be a primary research to be carried out.
will be prepared and designed to satisfy the purpose of the research work and
will be distributed to selected sample of the Management Staff.
1.8 DEFINITION OF TERMS
FRAUD: Refers to
irregularities involving the use of criminal deception to obtain an unjust or
VOUCH: To examine the
ERROR: Refers to an
AUDITOR: An independent
person who is appointed to investigate the organization, its records and
financial statement prepared by them, and thus form an opinion on the accuracy
and correctness of the financial statement.
INTERNAL AUDITOR: Is a
person appointed by the management of the organization to investigate the
organization, its records and financial statement and reports to the management
about the financial statement.
EXTERNAL AUDITOR: Is a
person appointed by the shareholders to form and express independent opinion on
the financial statement of the enterprise and also reports to the shareholders.
ILLEGAL ACTS: Is any act
which is contrary to law which may be intentional or unintentional.
INVESTIGATIONS: These are
examinations of or enquiries into something or somebody.
the purpose of investigation in an audit firm, it is “an enquiry commissioned
by a client for some purpose of his”.
Buyers has the right to create
dispute within seven (7) days of purchase for 100% refund request when
you experience issue with the file received.
Dispute can only be created when
you receive a corrupt file, a wrong file or irregularities in the table of
contents and content of the file you received.
ProjectShelve.com shall either
provide the appropriate file within 48hrs or
send refund excluding your bank transaction charges. Term and
Conditions are applied.
Buyers are expected to confirm
that the material you are paying for is available on our website
ProjectShelve.com and you have selected the right material, you have also gone
through the preliminary pages and it interests you before payment. DO NOT MAKE
BANK PAYMENT IF YOUR TOPIC IS NOT ON THE WEBSITE.
In case of payment for a
material not available on ProjectShelve.com, the management of
ProjectShelve.com has the right to keep your money until you send a topic that
is available on our website within 48 hours.
You cannot change topic after
receiving material of the topic you ordered and paid for.