Internal Control An Effective Tool For Fraud Management (a Case Study Of Uba Plc)

This study has attempted to examine internal control: An effective tool for fraud Management, with particular reference to United Bank for Africa plc. This has clearly pointed out the picture of how fraud has been penetrated in the financial strength of (UBA) Plc. in a nutshell, 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, gave rise to the topic of this research study- Internal Control effective tool for fraud Management which United Bank for Africa (UBA) 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, especially in the banking sector. Data captured for this study were primary and secondary sources. Questionnaire and personal interviews were used to collect primary data, while secondary data were obtained via library research, textbooks, internet documents and journal articles. Data collected were analysed, using tables and percentages, while hypothesis were tested using chi-square. The functions of fraud prevention, detection and correction are interwoven, as the three works together to eliminate fraud and fraudulent tendencies. Therefore, internal control is highly significance in fraud detection and preventions in modern industry specifically in banking sector in Nigeria.

Table of Contents

Tittle Pagei

Certificationii

Dedicationiii

Acknowledgementiv

Abstractvi

Table of Contentsvii

CHAPTER ONE

1.0 Introduction1

Background of the Study1

A Brief History and Profile of the United Bank For Africa Plc.2

Objective of the Study3

Statement of the Problem4

Hypotheses Formulation5

Significance of the Study5

Scope of the Study6

Limitations of the Study6

Definition of Terms7

CHAPTER TWO

LITERATURE REVIEW

Introduction9

Definition of Internal Control9

2.2Internal Control Objective11

Three Major Classification of Control11

The Concept of Fraud12

2.5Classification of Fraud14

Types of Bank’s Common Fraudulent Practices17

2.7Causes of Bank Frauds18

2.8Factors Influencing the Existence of Fraud in Bank19

2.9Management Responsibilities towards Fraud Prevention and Detection21

2.10Types of Internal Control24

2.11Nature of Internal Control29

CHAPTER THREE

RESEARCH METHODOLOGY

Introduction31

3.1Research Design31

Restatement of Research Question and Hypotheses32

Hypotheses33

Sources of Data Collection33

Sample and Sampling Techniques34

Study Population35

Method of Analysis35

Statistical Tools of Analysis36

Decision Rule for the Validation of Research Hypotheses37

Limitations38

CHAPTER FOUR

DATA ANALYSIS AND PRESENTATION

4.0Introduction39

4.1Analysis of Respondents Bio-Data40

4.2 Responses to the Question in the Main Questionnaire45

4.3Test of Hypothesis51

CHAPTER FIVE

5.0SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1Summary54

5.2Conclusions55

5.3Recommendations56

Bibliography58

Appendix