1.0 GENERAL INTRODUCTION OF STUDY
This research work is designs purposely in order to examine Fraud or irregularities in various financial institutions
That an auditor has the responsibilities for the prevention, detection and reporting of fraud, other illegal acts and errors is one of more controversial issue in auditing, and has been one of most frequently debated areas amongst auditors, politicians, media, regulators, and the public (Gay et al 1997). This debate has been especially highlighted by the collapse both small and big corporation across the globe. The auditing profession in Nigeria has caught the media?s attention following scandals in some of the Nigeria banks such as intercontinental bank, oceanic bank, Afri bank, and bank PHB among other.
There seems presently to be a misconception that auditor?s duties are lagging the preventing, detecting and reporting of Frond for example Idris (2009). The aim of this paper is to identify financial report user?s perception of the extent of Frond in Nigerian and to determine their perception of the auditors? responsibilities in deterring fraud and the performance of related and it procedures. The paper also aims to ascertain whether the reposts users? perception of auditors responsibilities on fraud and consistent with those of the auditing profession as expressed auditing standard in Nigeria.
1.1 STATEMENT OF THE PROBLEM
? The situation of the continuous tend of fraud in the banking industry with extent little or no control hence, the extent to which control is also achieved thereby through the impact of internal auditor in detecting and preventing fraud in the bank king sector.
1.2 OBJECTIVE OF THE STUDY
The objective of the study is to acquaint the reader with the menace of fraud in the banking industry with the view to assisting banks customers in initiating the effects and tackling the irregularities that I fraud in the transaction.
In addition, the objective of the study shall also review the following
? Identify methods available for every detection and preventer of fraud in the bank,
? Identify the key factors in detecting and preventing fraud in the banking industry.
? Identify the impact of internal auditors in detecting and preventing fraud in a bank.
1.3 SIGNIFICANCE OF THE STUDY
This study will be of high signification the general public and new banks to the impact internal auditors in fraud prevention in commercial banks in Nigeria and the significant step which can be used to reduce the effects to the dearest minimum.
1.4 RESEARCH QUESTION
This research will answer the following problem question.
? What are the various forms of fraud in Nigeria banks?
? What are the impacts of internal auditor in financial institution?
? What is the most effective was of detecting Fraud in Nigeria banking system?
? Why are frauds errors and embezzlement common in managerial field?
1.5 DEFINITION OF TERMS
According to A.H millicuamp (2002) describe errors as nitration mistake in financial statement such as
? Mathematical or clerical mistake in the underlying records and accounting data.
? Oversight or misinterpretation of fact or misapplication of Accounting policies
Fraud, according to Adeniji (2004:354) and ICAN (2006:206) is an intentional act by one or more individuals among management, employees or third parties, which result in a misrepresentation of financial statement. Fraud can also be seen as the intentional misrepresentation, concealment or omission of the truth for the purpose of deception / manipulation to the financial detriment of an individual or an organization which also includes embezzlement, theft or any attempt to steal or unlawfully obtain, misuse or harm the asset of the organization (Adeduro 1998 and Bostley and Drover 1972).
Auditing [Internal Auditing]
Auditing is an independent examination of the financial statement of an enterprise whether profit making not by an appointed auditor so as to enable him report whether is his opinion and according to the best of the information and explanation obtained, the statement is properly drawn up and gives a true and fair view of the state of affairs of the enterprise at the end of the reporting period.
Internal audit is an independent appraisal activity with an organization for the review of operation as a service to management. It is a management control which functions by measuring and evaluating the effectiveness of the control.