The effectiveness of internal control system as a tool for preventing and detecting fraud and errors in financial institution – a case study of First bank Plc
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The central bank of Nigeria reported that the backward development in Nigeria was attributable to weakness in the internal control systems of the Financial Institutions. This has clearly pointed out the picture of how fraud has been penetrated in the financial strength of Nigeria financia institution (Banks). In a nut shell, the damage which this menace, called fraud has done to the banks is innumerable and needs urgent attention. Therefore, the attempt to put an end to this economic degradation, give rise to the topic of this research study, the effectiveness of internal control system as a tool for preventing and detecting fraud and errors in financial institutions with First Bank of Nigeria Plc as a case study. However, this study is aimed at verifying the conception that an effective and efficient internal control system is the best control measure for preventing and detecting fraud and errors, especially in the banking sectors. Data captures for this study are drawn largely from the organization by the instrument of questionnaire. The data captured were analysed through descriptive analysis involves the use of percentages and tabulation presentation, while the inferential statistical methods involved the use of chi-square. The functions of fraud prevention, detection and control are interwoven, as the three works together to eliminate fraud and fraudulent tendencies. Therefore, internal control is highly significant in fraud and error detection and prevention in financial institutions in Nigeria.
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