Journal VOL. 1 NO. 1, June. 2021, ISSN: 2811 - 2393
Internal Control of Financial Institutions in Nigeria: A Study of United Bank for Africa Plc.
Ngozi Ben Anuonye
ABSTRACT
Studies indicate that financial institutions in Nigeria have often been confronted with the problem of frauds and affected their operational efficiency. Internal control as a means of checking fraud perpetration in financial institutions is the major focus of this study especially in the Nigeria's banking industry. Descriptive and inferential statistical techniques were employed in analyzing the data. 110 questionnaires were distributed to respondents. 93 of the questionnaires were returned representing 84.5%. Analyses of the results showed that there is a positive relationship between internal controls and fraud prevention at a correlation coefficient level of 0.963 and coefficient of determination of 0.925. This indicates that about 92.5% variation in fraud prevention could be attributed to the effect of internal controls and its corollaries. The result further showed that the adjusted R-square is 0.922 and the standard error of the estimate is 1.050. This explains the variation in fraud prevention which could be attributed to joint effect of the independent variables. It was therefore concluded that internal controls have significant effect on fraud prevention. The study recommended among others that financial institutions' personnel should be trained on the management of fraud.
Keywords: Institutions, fraud, investigation, controls, banks, Nigeria
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