Yakubu, Ibrahim Nandom and Alhassan, Mohammed Mubarik and Iddrisu, Nasiru Alhassan and Adam, Jamaldeen and Sumaila, Mujeeb Rahman (2017): The Effectiveness of Internal Control System in Safeguarding Assets in the Ghanaian Banking Industry. Published in: International Journal of Management and Commerce Innovations , Vol. 5, No. 1 (30 June 2017): pp. 544-557.
PDF
MPRA_paper_95116.pdf Download (627kB) |
Abstract
The study assessed the effectiveness of internal control system in safeguarding assets against fraud in Agricultural Development Bank Ghana Limited (ADB). The study specifically highlighted the major causes of fraud; determined the extent of implementation of internal control systems; assessed the effectiveness of internal control system on fraud detection and prevention; and ascertained the effect of fraud on the bank in terms of its profitability, liquidity and operational efficiency. A structured questionnaire was used as a primary data collection instrument to select employees of ADB by purposive and convenient means. Items of the questionnaire were measured on the ranking scale. 37 employees from five branches of the bank were sampled. Data analysis was done using descriptive statistics. The study found that employees of the bank perceived that; poor internal control system, presence of unqualified staff, inadequate staffing, poor record-keeping practices, and inadequate training and re-training of staff among others were the main causes of fraud. All aspects of internal control system were strongly implemented and practiced by the bank. Internal control system was effective in controlling fraud in the bank in various forms. Fraud had negative and insignificant effect on the performance of the bank. The study recommends the continuous practice of the internal control system to ensure that fraud of any form is reduced to the barest minimum.
Item Type: | MPRA Paper |
---|---|
Original Title: | The Effectiveness of Internal Control System in Safeguarding Assets in the Ghanaian Banking Industry |
Language: | English |
Keywords: | Internal Control System, Ghana, Bank, Fraud, Assets |
Subjects: | M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing > M40 - General M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing > M41 - Accounting M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing > M42 - Auditing |
Item ID: | 95116 |
Depositing User: | Mr. Ibrahim Nandom Yakubu |
Date Deposited: | 18 Jul 2019 08:06 |
Last Modified: | 26 Sep 2019 08:53 |
References: | Aderibigbe, P. (1999). The Internal Audit Function and Fraud: A Nigerian Case Study. ICAN News, January/March, 15-19. Adeyemo, K. A. (2012). Frauds in Nigerian Banks: Nature, Deep-Seated Causes, Aftermaths and Probable Remedies. Mediterranean Journal of Social Sciences, 3(2), 279-289. Alashi, S.O (1994). Fraud Prevention and Control: the Role of Government and Government Agents. Nigerian Institute of Bankers Lagos, 30(4), 27-35. Amudo, A. & Inanga, E. L. (2009). Evaluation of Internal Control Systems: A Case Study from Uganda.International Research Journal of Finance and Economics, ISSN 1450-2887 Issue 27, 124-144. Association of Certified Fraud Examiners (1999). Report on the Nation Occupational Fraud and Abuse, available at: http//www.efenet.com/summary, accessed during June 2012. Asukwo, P. E. (1999). Bank Frauds: A Look at the Nigerian Banking Clearing System, ICAN News, January/March, pp 19-24. Attwood, F. A. & Stein, N. D. (1986). Auditing (17th ed.). Pitman Publishing Ltd. Atuk, I. C. (2011). Evaluation of internal control system of banks in Nigeria. A dissertation submitted to St. Clements University. Aucoin, P. and M. D. Jarvis (2004). Accountability in Democratic Governance and Public Management: A Framework for Understanding the Canadian System. Ottawa, Canada School of Public Service. Bridge, M., and Moss, I.(2003). COSO back in the limelight. Available at http:www.pwc.com/extweb/indissue.nsf/docid (Accessed on 1st august, 2011). Burns, N & Grove, S. K.(1999). Understanding nursing research. Philadelphia: Saunders. COBIT Internal Control Framework (2007), Available at: http://www.isaca.org/AMTemplate.cfm?Section= Downloads&Template=/Content Management/ContentDisplay.cfm&ContentID=34172 (Accessed: 21 July 2012). COBIT 4.1 Available, www.itgi.org (Accessed: 21 July 2012). COSO Definition of Internal Control, Available http://www.coso.org/key.htm (Accessed: 3 March 2012). COSO Internal Control - Integrated Framework (1992), Available: http://www.coso.org/publications/executive_summary_integrated_framework.htm (Accessed:10 July 2012). COSO Project to Focus on Monitoring of Internal Control, Available http://www.coso.org/Publications/COSO%20 Monitoring%20GT%20Final%20Re lease_1.8.07.pdf (Accessed: 12 July 2012). Dinapoli T. P. (1999). Standards of Internal control in New York State Government. www.d/NewYorkState Comptroller.htm. Fadipe-Joseph, O. A., & Titiloye, E. O. (2012). Application of Continued Fractions in controlling Bank Fraud. International Journal of Business and Social Science, 3(9), 210-213. Geiger, M.A., Cooper, S.M., & Boyle, E.J. (2004). Internal control components: Did COSO get it right? The CPA Journal, 7(1), 28-31. Hair, J. F., Jr., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate Data Analysis (5th ed.). Upper Saddle River: Prentice Hall. Holtfreter, K. (2004). Fraud in US organisations: An examination of control mechanism,” Journal of Financial Crime, 12(1), 88-94. Holmes, S.A., Langford, M., Welch, O. J., & Welch, S. T. (2002). Associations between internal controls and organisational citizenship behaviour, Journal ofManagerial Issues, 14(1), 85-99. Howard L.R. (1982). Auditing (7th Ed.). London: ELBS/Macdonald and Evans. Huysamen, G.K., (1990). Methodology for the Social and Behavioural Sciences. Southern Book Publishers. Idolor, E. J. (2010). Bank Fraud in Nigeria: Underlying Causes, Effects and Possible Remedies. African Journal of Accounting, Economics, Finance and Banking Research, 6(6), pp 62. Idowu, I. (2009). An Assessment of Fraud and its Management in Nigeria Commercial Banks. European Journal of Social Sciences, 10(4), 628-640. INTOSAI (2001). International Organisation of Supreme Auditing Institutions, Frame of internal control system. Kinney, W. (2000). Research opportunities in internal control quality and quality assurance. Auditing: A Journal of Practice & Theory, 19 (Supplement), 83-90. Kotzar, H., Seuring, S., Muller, M. & Reiner, G. (2005). Research methodologies in supply chain management, Yhysica-Verlag, Germany: Heidelberg. Lacotelli, M. (2003). Internal Control Reporting –What Directors Should Know: Directorship Journal September pp.1 -5 [online] available at http://ebscohost.com/ehost (accessed 7 June 2008). Loustea (2006). The role of controls; financial journal; March 2006 page 12. Millichamp, A.H. (2002). Auditing (8th Ed.). London: Thomson Learning. Queensland University of Technology (2005); Manual of Policies and Procedures: Internal Control Policy [online] available at http://www.mopp.qut.edu.au/ contact.jsp [accessed 7 June 2012]. Ntim-Sarpong, K. (2012). Internal control system: challenges and effects on management, staff and customers of agricultural development bank, Brong-Ahafo Region. Kwame Nkrumah University of Science and Technology. Ojo J. A. (2008). Effect of bank frauds on banking operations in Nigeria, International Journal of Investment and Finance, 1(1), 103. O‟Leary, C., Iselin, E., and Sharma, D. (2006). The relative effects of elements of internal control on auditor‟s evaluations of internal control, Pacific Accounting Review, 18(2), 69-94. Olorunsegun, S. (2010). The Impact of Electronic Banking in Nigeria Banking System (Critical Appraisal of Unity Bank Plc), A Master Degree Dissertation submitted to Ladoke Akintola University of Technology, Ogbomoso, Oyo State, Nigeria. Quinn, M.P. (1990). Handbook of mixed methods in social & behavioral research (2nd ed.). Newbury Park, CA: Sage. Rittenberg et al. (2007). Internal Control Guidance Not Just a Small Matter Journal of Accountancy March p.5[Online Issue] available at http://www.cpa2biz.com (accessed 7 June 2008). Saunders, M., Lewis, P. & Thornhill, A. (2007). Research Methods for Business Students, Prentice Hall Pearson Education, 3 rd ed. Sekaran, U. (2003). Research Methods for Business. John Wiley & Sons, New York, NY. Simmons, M.R. (1995). The Framework for Internal Control: A Strategic Approach to Internal Audits [online] available at http://www.facilitatedcotrols.com/internal- audit/cosobsic.htm {accessed 13 November 2007} page 12-22. Smith, M., Omar, N., Sayd Idris, S.I.Z., & Baharuddin, I. (2005). Auditor‟s perception of fraud risk indicators: Malaysian evidence. Managerial Auditing Journal 20(1), 73-85. Talbot, LA. (1995). Principles and practice of nursing research. St. Louis: Mosby. Udoayang, J. O. & Ewa, U. E. (2012). The impact of internal control design on banks‟ ability to investigate staff fraud, and life style and fraud detection in Nigeria. International Journal of Research in Economics & Social Sciences. 2(2), 32-43. Wells, J. (2006). Coso Release Discussion Document on Monitoring Internal Control Systems [online] available at http://www.jefferson-wells.com {accessed 7 January 2008}. Yin, P. K. (1994). Case Study Research-Design and Methods, Sage Publications, Newbury Park. Ziegenfuss, D.E. (2001). The role of control environment in reducing local government Fraud. Journal of Public Budgeting, Accounting & Financial Management, 13(3), 312-324. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/95116 |