CHAPTER ONE
1.0
INTRODUCTION
1.1 STATEMENT OF PROBLEM
Seeing all the adequate
measures such as internal control auditing, separation of duties, monitoring of
branch operations, application of diplomacy actions etc. in order to control
fraud and forgery in the Nigerian banking industries, still there is fraud and
forgery in the Nigeria
banking industry.
More still, banks screen the best
staff for employment monitor and check dormant accounts, apply fraud detecting
machines periodic rotation of bank staff etc, all are also another fraud control measures, despite all these, there
is still bank fraud.
The next question a reasonable one
will ask is “why does bank fraud still occurs:
This led me to write on this topic to
really know, what bank fraud is, types, its effects on the economy, suggested
control measures, causes of fraud in order to take this problem in the society
over out banking industry.
1.2 RATIONALE OF THE STUDY
However, in accounting today the issue
of fraud and forgery has been so ran pact among Nigerian banking institutions.
Actually fraud cannot be easily be eradicated but with some control measure
amendment can be made to control it. So the researcher had seen this problem of
fraud and forgery in the country and has decided to bring out same solution to stop
this or reduce the rate of this problem.
Now the question is that does it mean
that all this measures for fraud and forgery control has no impact in the
banking industry? Why do we still experience fraud and forgery despite all this
measures such as internal and external another, generalities for fraud less,
adequate call over etc. still we experience fraud and forgery. It is of this
reason that I researcher had forgery. It is of this reason that I researcher
has decided to know what fraud and forgery is all about in the banking
industry, the native and forms of bank fraud to know same of the facilities
that facilitate fraud, to know the actual infact of fraud in the economy.
Having seen also this reasons it is of this note that I the research will libe
to bring out same solution to put an end or limit this ugury institution in the
banking industry and this has lead me to write on this topic. Fraud and forgery
in the banking industryâ€
1.3 SIGNIFICANCE OF THE STUDY
This research on fraud and forgery in
the Nigerian banking industry will be of importance to many individuals who are
bank customers and also to banker.
Since the research ex-rayed various
types of fraud and forgery the bank will use it as an avenue to know the types
of fraud and forgery that happened to then if any can made adjustment to its
re-occurrence.
Also, banks will use the possible
measure to control fraud an forgery in order to avoid bank distress and
failures.
Other parastatals apart from banks
will equally benefit fro this research as it give solutions to fraud and
forgery.
Morestill, since the researcher took
mark tyiro in caning out with a good material like this, it will be of good
importance to subsequent researchers.
1.4 DEFINITION OF TERMS
The following terms in this study
should be taken to mean the following:
FRAUD
Is an intentional use of deception to
obtain an injust or illegal advantage, is basically bome out of violation of
trust. It is a phenomenon that is growing in methods, magnitude and
sophistication. Fraud has also been defined as the intentional
misrepresentation of financial information by one or more individuals among
management of banks, employees.
BANKING
Is defined in the 1969 Act as the
business of receiving manias from outside source as deposits irrespective of
the payment of interest, and the granting of money loans and acceptance of
credits or the purchases of bills and cheques on the purchase and soles of
securities for account of others of the assumption of guarantees and other
warrantees for others effecting of transfers and clearing such other
transactions as the commissioner may, on the recommendation of the central bank
order published in the federal gazette designate as banking business.
AUDIT
According to the audit operational
standards, audit is defined as the independent examination or an expression of
an opinion on the financial statement of that appointment, and in compliance
with relevant statutory obligation.
INTERNET CONTROL
Is concern with the actions taken
within an organization in order to regulate and direct its activities and
personnel. It is the whole system of controls, financial and otherwise,
established by management in order to carry on the business of enterprise in an
orderly and efficient management policies, safeguards the assets and secure as
for as possible the completeness and accuracy of the records.
INTERNAL AUDITING
Has been defined as an independent
appraisal activity within as organization for the review of operations as a
service to management. It is a management controls which functions by measuring
and evaluating the effectiveness of other controls.
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