Home » Banking and Finance » ASSESSMENT OF THE IMPACT OF AUDITING IN CONTROLLING FRAUD AND OTHER FINANCIAL IR...
ASSESSMENT OF THE IMPACT OF AUDITING IN CONTROLLING FRAUD AND OTHER FINANCIAL IRREGULARITIES IN THE CAMEROONIAN BANKING
Sold By: | Item Type: Project Material | Report this? | Attributes: 54 pages | 1-5 chapters | Amount: ₦5,000 | Marked useful: 66 times
Delivery: Within 24 hoursASSESSMENT OF THE IMPACT OF AUDITING IN CONTROLLING FRAUD AND OTHER FINANCIAL IRREGULARITIES IN THE CAMEROONIAN BANKING INDUSTRY
CHAPTER ONE
INTRODUCTION
Background of the Study
It is no doubt that the Nigerian banking industry is characterized by a high level of competition and performance pressure, making it mandatory that all of her operations are brouth to stringent scrutiny through the function of auditing control to prevent the incessant financial management and fraudulent practices that has bedeviled 21st century banks. Asuzu (2021) in support of this notion highlighted that although the banking industry plays a vital part in the economic growth and development of the nation, fraud causes a depletion of necessary cash required for robust economic operations.
According to Fatoki, 2018), fraudulence has resulted in substantial monetary damages in both the banking sector and the wider national economy. A study conducted by Austin (2021) has revealed that fraud has significantly contributed to the financial turmoil and underperformance of numerous institutions in Cameroon. Olorunsegun (2020) emphasized that fraud poses a significant obstacle in the banking sector, rendering all banks susceptible and troubled. The bank management allocates significant financial resources to prevent its happening. Furthermore, fraudulent activities give rise to concerns regarding the trustworthiness of bank personnel and leadership, resulting in a decline in client trust. Adeyemo (2022) states that financial frauds frequently entail the complicity of insiders or personnel hence bank management and personnel are required to carry out their responsibilities with the highest level of integrity and refrain from engaging in any fraudulent activities in order to uphold public trust and maintain a positive reputation via auditing control.
Schelluh, and Reid (2019) argue that the auditor's duty to prevent, discover, and disclose fraud, illegal activities, and errors is a subject of intense controversy in the field of auditing, with auditors, politicians, media, regulators, and the public constantly engaging in discussions on this matter. The collapse of both small and major enterprises globally has intensified this argument. Crucial roles and responsibilities are essential in Cameroonian banks, as they contribute to both the transformation goal and the efficient functioning of operations. The allocation of these jobs is divided among teams assigned with specific responsibilities, emphasizing the significance of each employee and staff member in the bank's operations. Auditing plays a crucial role in these organizations, particularly in relation to detecting and investigating fraud and irregularities. An audit is a process where an impartial and unbiased evaluation is conducted on an organization's financial accounts. These statements are assessed by competent and impartial auditors to ascertain their trustworthiness and accuracy, guaranteeing adherence to the universally recognized criteria established by national regulatory authorities
Conversely, Power, Walsh, & O’Meara, (2021) mentioned that auditing and financial evaluations play a crucial role in assessing how bank administrators handle revenue, assets, and transactions. Consequently, it is imperative for Cameroonian banks to hire a team of diverse specialists to conduct audits and financial assessments. Banks should supplement their internal accounting and auditing staff by enlisting the services of external specialists to ensure impartiality and conduct a precise evaluation of the institution's stability (Jones & Pendlebury, 2020). External auditors, also referred to as independent auditors, provide impartial audits of financial accounts for a range of institutions, such as governments, companies, and individuals (Arter, 2022; Cameron, 2018). External auditors differ from internal auditors in that they primarily evaluate risk management techniques, strategy, and governance processes, rather than offering comments or suggestions on financial statements. Their primary objective is to verify the accuracy and integrity of financial statements, ensuring they are free from errors and misstatements (Arter, 2018).
In addition, Onwujiuba (2018) demonstrated that the measures implemented by bank management following instances of fraud are inadequate in deterring future fraudulent activities. The study revealed that the banking management in Cameroon is inadequately executing steps to prevent and regulate banking fraud, resulting in persistent fraudulent activities. Nevertheless, Adeyemi and Uadiale (2021) contended that the existing obligations and roles of auditors are insufficient and lack precise delineation. Similarly, there is a high level of public anticipation on the obligations of auditors in identifying and preventing fraud. As a result, there is a widespread belief that the responsibilities of auditors should be broadened. Given the importance of this function, this study aims to assess the impact of auditing in controlling fraud and other financial irregularities in the Cameroonian banking industry.
Statement of the Problem
In recent times, the high occurrence of fraud and financial irregularities in the banking industry has significant adverse effects on the economy and public confidence. The occurrence of notable instances of fraud in Cameroonian banks emphasizes the immediate requirement for efficient procedures to proactively avoid and identify such matters (Anagbogu & Shitu, 2021). Moreover, the occurrence of fraud and irregularities in banks can be attributed to various causes, such as deficiencies in internal controls, inadequate employee training, and unfavourable economic situations (Nwanyanwu, 2018) Studies suggest that larger banks have a greater ability to identify fraud through audits, although they are not entirely resistant to it (Modugu & Anyaduba, 2019).
Succinctly, Anagbogu & Shitu, 2021, Njanike (2019) pointed that the efficacy of audits is also impacted by the regulatory milieu and the compliance obligations imposed on banks (Idris, 2019). Although efforts have been made by regulators such as the Bank of Central African States to enhance standards, there may still be remaining deficiencies (Ojo, 2018). Moreover, instances of fraud and irregularities within Cameroonian banks have the potential to result in business failures or even bankruptcy. In addition to the immediate repercussions, these difficulties have a considerable impact on the capital market, capital structure, the Efficiency Market Hypothesis, and credit ratings. However, auditors must adjust to technology changes in banking, such as automation and internet platforms, which bring about new dangers of fraudulent activities (Aderibigbe, 2020). Hence, it is in the light of these that the study seeks to assess the impact of auditing in controlling fraud and other financial irregularities in the Cameroonian banking industry.Nigeria.
1.3 Objectives of the Study
The main purpose of this study is to assess the impact of auditing in controlling fraud and other financial irregularities in the Cameroonian banking industry. Specifically, the study will;
Evaluate the effectiveness of auditing practices in detecting and preventing fraud in the Cameroonian banking sector.
Identify the financial irregularities encountered in Cameroonian banks.
Assess the impact of auditing on the financial stability of banks in Cameroon.
Assess the relationship between internal auditing processes and the incidence of fraud in the banking industry.
1.4 Research Questions
The following questions have been prepared for the study:
How effective are auditing practices in detecting and preventing fraud in the Cameroonian banking sector?
What financial irregularities are encountered in Cameroonian banks?
What is the impact of auditing on the financial stability of banks in Cameroon?
What is the relationship between internal auditing processes and the incidence of fraud in the banking industry?
1.5 Research Hypotheses
H0:Auditing has no significant impact on controlling fraud and other financial irregularities in the Cameroonian banking industry.
Ha: Auditing has a significant impact on controlling fraud and other financial irregularities in the Cameroonian banking industry.
1.6 Significance of the Study
This study aims to provide critical insights for banks operating in Cameroon by highlighting the role of auditing in controlling fraud and financial irregularities. Understanding the effectiveness of current auditing practices will enable banks to identify gaps and implement more robust audit mechanisms. This will lead to improved financial stability, enhanced trust from customers and stakeholders, and a reduction in financial losses due to fraud and irregularities.
Furthermore, the findings will provide a basis for refining theoretical approaches to financial regulation, emphasizing the role of audits as a critical component of regulatory oversight. This can inform future research on the interplay between regulation, auditing, and financial stability. Nevertheless, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review.
1.7 Scope of the study
The scope of this study is boarded on the impact of auditing in controlling fraud and other financial irregularities in the Cameroonian banking industry. Empirically, the study will evaluate the effectiveness of auditing practices in detecting and preventing fraud in banking sector, identify the financial irregularities encountered in banks, assess the impact of auditing on the financial stability of banks and the relationship between internal auditing processes and the incidence of fraud in the banking industry.
Geographically, the study will be delimited to Afriland bank
1.8 Limitation of the study
In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.
1.9 Definition of Terms
Auditing:The systematic examination and evaluation of financial records and transactions of an organization to ensure accuracy, reliability, and compliance with established accounting standards and regulations.
Fraud:Intentional acts of deception or misrepresentation made to secure an unfair or unlawful financial gain.
Financial Irregularities:Deviations or discrepancies from standard accounting practices and financial regulations that indicate potential errors, mismanagement, or fraudulent activities.
This material content is developed to serve as a GUIDE for students to conduct academic research
Delivery: Within 24 hours
Reference(s):
Yes availableMethodology: Yes available
Advertise Here
Not what you were looking for? Perform a search
What's your project topic?
Comment on Facebook:
Related Project Materials
- 1.
ASSESSING THE INFLUENCE OF INFORMATION TECHNOLOGY ON INTERNAL AUDITING PRACTICES - INVESTIGATING THE...
INVESTIGATING THE CHALLENGES OF AUDITING IN FINANCIAL INSTITUTIONS: A CASE STUDY OF INSURANCE COMPANIES IN CAMEROON CHAPTER ONE INTRODUCTION Backgroun...More »
Item Type: Project Material | 54 pages | 23 engagements |
- 2.
THE ADOPTION INFORMATION TECHNOLOGY AND THE IMPROVEMENT OF
CUSTOMER SATISFACTION OF SELECTED BANKS IN JOS PLATEAU STATE CHAPTER ONE INTRODUCTION 1.1 Background Of The Study All banks operating in Nigeria mu...More »
Item Type: Project Material | 54 pages | 2,617 engagements |
- 3.
THE IMPACT OF FEDERAL STUDENT LOAN INTEREST RATES ON BORROWER REPAYMENT BEHAVIOR IN NIGERIA
CHAPTER ONE INTRODUCTION Background of the study Student loans have become a crucial element of worldwide higher education finance. In the last ten...More »
Item Type: Project Material | 54 pages | 1,405 engagements |
- 4.
FINANCIAL TECHNOLOGY (FINTECH)AND CUSTOMER SATISFACTION IN NIGERIA. (A CASE STUDY OF OPAY)
CHAPTER ONE INTRODUCTION 1.1 Background of the study Globally, technology has permeated every facet of our lives, encompassing social interactions, ed...More »
Item Type: Project Material | 54 pages | 992 engagements |
- 5.
AN ASSESSMENT OF THE EFFECTS OF MULTIPLE BANK CHARGES ON THE CUSTOMER'S BANKING DECISION
CHAPTER ONE INTRODUCTION Background of the Study The selection of a banking institution may be impacted by various factors. Cost may or may not be the...More »
Item Type: Project Material | 54 pages | 1,396 engagements |