The Effect of Internal Audit Practices on Fraud Prevention in Sterling Bank Plc, Kogi State
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
Internal auditing is an essential part of corporate governance and risk management in organizations. It involves an independent, objective assessment of the effectiveness of a company's internal controls, risk management processes, and compliance with policies and regulations (Makanjuola & Lawal, 2023). In the banking sector, internal audits are crucial in detecting and preventing fraud, which is a significant concern for financial institutions, especially in developing economies like Nigeria. Sterling Bank Plc, one of Nigeria's commercial banks, operates in Kogi State and faces similar challenges related to fraud, which can have serious financial and reputational consequences.
The increasing prevalence of financial fraud in Nigerian banks has underscored the importance of internal audit practices in identifying and mitigating potential fraudulent activities (Ayodeji & Alabi, 2024). Internal audit departments are tasked with evaluating and improving the effectiveness of the bank’s internal controls, including those related to financial reporting, asset protection, and compliance with regulations. In a state like Kogi, where banking activities are essential to local economic development, the ability of Sterling Bank to prevent fraud through effective internal audit practices is critical to maintaining stakeholder confidence and financial stability.
Despite the recognition of the importance of internal audits in fraud prevention, there is limited research on the specific impact of internal audit practices on fraud prevention in Nigerian banks, particularly in Kogi State. This study aims to investigate the relationship between internal audit practices and the prevention of fraud in Sterling Bank Plc, with the goal of providing recommendations for improving the effectiveness of internal audit functions in the Nigerian banking sector.
Statement of the Problem
Fraud remains a significant challenge for banks in Nigeria, including Sterling Bank Plc in Kogi State. While internal audit functions are designed to identify, prevent, and address fraud, concerns persist regarding the adequacy and effectiveness of these practices. Inadequate internal control systems, insufficient audit coverage, and lack of proper audit follow-up mechanisms have been identified as factors contributing to the failure of internal audits to prevent fraud (Adewale & Balogun, 2023). Although Sterling Bank has established internal audit systems, the extent to which these practices effectively mitigate fraud in the bank’s operations in Kogi State is not well understood.
This study seeks to explore how internal audit practices in Sterling Bank Plc impact the prevention of fraud, with the aim of identifying any gaps in the current audit framework and offering recommendations for improvement. The problem of fraud prevention in Nigerian banks is critical, especially as the banking sector continues to grow and expand in regions like Kogi State.
Objectives of the Study
1. To assess the effectiveness of internal audit practices in preventing fraud in Sterling Bank Plc, Kogi State.
2. To examine the relationship between internal audit practices and fraud detection in Sterling Bank Plc, Kogi State.
3. To identify the challenges faced by Sterling Bank Plc in implementing effective internal audit practices for fraud prevention in Kogi State.
Research Questions
1. How effective are internal audit practices in preventing fraud in Sterling Bank Plc, Kogi State?
2. What is the relationship between internal audit practices and fraud detection in Sterling Bank Plc, Kogi State?
3. What challenges does Sterling Bank Plc face in implementing effective internal audit practices for fraud prevention in Kogi State?
Research Hypotheses
1. Internal audit practices have a significant effect on preventing fraud in Sterling Bank Plc, Kogi State.
2. There is a significant relationship between internal audit practices and fraud detection in Sterling Bank Plc, Kogi State.
3. Sterling Bank Plc faces significant challenges in implementing effective internal audit practices for fraud prevention in Kogi State.
Scope and Limitations of the Study
The study will focus on the internal audit practices of Sterling Bank Plc in Kogi State, specifically examining how these practices contribute to fraud prevention. Limitations include the potential lack of access to sensitive internal audit reports and data, as well as the challenge of generalizing findings from one bank to the broader banking sector.
Definitions of Terms
• Internal Audit Practices: The processes and activities carried out by internal auditors to assess the effectiveness of an organization's internal controls and risk management.
• Fraud Prevention: Measures taken by an organization to detect, prevent, and address fraudulent activities.
• Internal Controls: Procedures and policies implemented by an organization to safeguard its assets and ensure the accuracy of financial reporting.
• Fraud Detection: The process of identifying fraudulent activities within an organization.
Related Project Materials
PREVALENCE OF HIV/AIDS AMONG INTENDING DONORS
ABSTRACT
The Human Immune deficiency Virus(HIV) and the Acquired Immune Deficiency Syndrome (AIDS) situation in Nigeria has affected bloo...
The Role of Tax Incentives in Improving Corporate Financial Performance in Nigeria: A Study of MTN Nigeria
Background of the Study
Tax incentives are widely recognized as a strategic tool for promoting economic growth and encou...
PERFORMANCE EVALUATION OF MOBILE NETWORK SERVICES IN SHIRORO POWER STATION, NIGERIA
ABSTRACT
In this work, performance of four mobile network operators (MNOs) was measured, analysed, and evaluated in Shiroro Power Station...
An examination of economic resilience determinants in Nigeria in the face of global shocks: Evidence from Abuja (2000–2020)
Background of the Study :
Economic resilience refers to an economy’s ability to withstand and recover from external shocks such as...
THE IMPACT OF VIOLENT CONFLICT IN THE PROCESS OF DEMOCRATIZATION
Abstract
There seem to be a debate on the validity of democratic peace theory. While some scholars argued that democracy engenders peace,...
PHOSPHORUS STATUS OF SOME/THREE WETLAND TYPES IN AKWA IBOM STATE, SOUTH EASTERN NIGERIA.
ABSTRACT
Phosphorus status of three wetland types in Akwa Ibom State was investigated. The aim was to find out phosphoru...
An Assessment of Barriers to Adherence to Physical Therapy Among Post-Operative Orthopedic Patients in Bauchi State Hospitals
Background of the Study: Post-operative rehabilitation plays a vital role in the recovery of orthopedic pati...
THE ROLE OF AUDITORS IN A DEPRESSED ECONOMY (A CASE STUDY OF SELECTED BANKS)
EXCERPT FROM THE STUDY
The American Accounting Association (AAA) defines auditing as systematic process of objectivity o...
A STATISTICAL REPORT OF ROAD ACCIDENTS IN NIGERIA
BACKGROUND OF THE STUDY
When compared to other modes of transportation such as air, train, and water, road transportatio...
An assessment of the role of political satire in shaping public opinion on local governance: A case study of Lagos Island Local Government Area, Lagos State
Background of the Study:
Political satire has emerged as a powerful tool for critiquing and shaping public...
