Internal Control System and Fraud Detection in the Nigerian Banking Sector

ABSTRACT

This study examined the relationship between internal control system in order to determine the extent to which internal control system (control environment, risk assessment, and monitoring) aid in the detection of fraudulent activities in the Nigerian banking sector. It explores the concept of internal control system, fraud, and fraud detection. The objectives of this study are to determine the relationship between control environment, risk assessment, and monitoring and fraud detection in the Nigerian banking sector. The population of this study consisted of all listed deposit money banks in Nigeria. Primary data was sourced from the sample using questionnaires. It was found that control environment, risk assessment, and monitoring have a positive relationship with fraud detection in the Nigerian banking sector with each varying in its level of significance. It also makes various recommendations on how fraud detection can be minimized by utilising the different components of internal control system.