Management Responsibility in Fraud Detection

Management Responsibility in Fraud Detection

Project / Seminar Material
Reference ID: PS-4590-TM

DEDICATION

This research material titled “Management Responsibility in Fraud Detection” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Purchasing and Supply (PS), Book Authors and Profound Scholars of existing or related project material on “Management Responsibility in Fraud Detection” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

INTRODUCTION

    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • ⋮
    • 2.4 Empirical Studies

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”

    ABSTRACT

    Fraud involves willful misrepresentation, the deliberate concealment of a material fact5 for the purpose of inducing another person to do something unethical or the failure to disclose of a material fact.

    Therefore any material alteration, erasure, removal which is done to deserve and to cheat an unsuspecting victim, constitutes fraud.

    Against this background, it is easy to observe that frauds are umbrella crime concept covering a wide range of criminal behaviour. Most frauds are rooted in the destroy by some individuals to get to confer some advantages(mainly financial) which the fraudster does not desire. No wonder the federal government of Nigeria has declared this cancer worm a national issue and has constituted anti-corruption commission to deal with it.

    Management Responsibility in Fraud Detection

    CHAPTER ONE

    Introduction

    1.1 Background of the Study

    The management of business risk is one of the important issues facing business. Any risk may be a serious threat to an organizations well being. Fraud is a real threat to the financial health of an organization and to its image and reputation. Therefore management has to understand the potential consequences of fraud on their business and then the need to reduce risk through developing an anti-fraud culture across their business by introducing appropriate policies, controls and procedures on how to deal with fraud in an organization.

    Fraud can be described as cancerous premeditated action of a person or group with the intention of altering the truth of fact for selfish personal monetary gain. In involves the use of decent and trick and sometimes highly intelligent cunning and know how. The action usually takes the form of forgery, falsification of documents and forgery of signature in and out right theft.

    Fraud also involves will fill misrepresentation, the deliberate concealment of a material fact for the purpose of inducing another person to do something unethical or the failure to do disclose a material fact. Therefore any material alteration, whether by addition, insertion obliteration, erasure, removal which is done to deceive and cheat an unsuspecting victim, constitutes a fraud. Against this background, it is easy to observe that fraud is an umbrella crime concept covering a wide range of criminal behaviour. Most frauds are routed in the desire by some individuals to get rich quick, while virtually all frauds are perpetrated with intent to confer some advantage mainly financially which the fraudster does not desire.

    The fraudster government of Nigeria seems that this cancer worm (fraud) has increased constituted anti-corruption commission to deal with it.

    1.2 Statement of Problem

    For the past years, the risk of fraud has been a barrier to all business both small and medium size business.

    Is spite of all attempts been made by the fraud advisory panel that was established 1998, unfortunately such efforts have not been fruitful due to lack of internal controls and resources internal auditors or human resource departments which can help during the course of their other work in the fight against fraud.

    The risk of fraud in Bergel Cosmetics Industry has increased due to the fact that new employees are not provided with the business fraud policy statement and prevention and detection matters are not included in the induction programmes and continuous carrier training.

    Besides this has led to poor turnover as invest fear of being defrauded.

    1.3 Objective of the Study

    The objective of this study is thus:

    1. To identify the risk of fraud in business
    2. To examine the various ways of fraud detection
    3. To consider productive steeps to prevent fraud in business
    4. To examine the factors that is responsive for the ineffective implementation of antifraud policies.
    5. in the light of the above to make necessary recommendations
    6. To identify the loopholes for funds siphoning in the system.

    1.4 Relevance of the Study

    The relevance of this study derives from its usefulness to the following;

    1. Organizations:

    The management at business organization will be to detect the risk of fraud and to adopt anti-fraud measures that will help to reduce the risk of fraud in business organization. By so doing it will enable them to carry out business transactions with so many people without lost of reputation.

    2. Government:

    Since the risk of fraud affects investors and the society at large, it will be seen in this study the need to formulate and implement anti-fraud measur5es that will help to create conducive business environment for investors so that investors will invest without having the fear of being defrauded.

    3. Individuals:

    Despite all of the modern technologies, stealing someone's identity may be easier than ever imagines using a stolen cheque of deposit slip, blank or filled, all these are risk of fraud an individual can face. This study will enable an individual to know ow how to protect him/her from falling victim of this loss.

    4. Students and researchers:

    The study will also be useful for academic purpose. It will serve a data bank for anybody who will carry out a related study in the future; furthermore, the research finding can provide the basis of further studies.

    1.5 Research Questions:

    The following questions were postulated owing to the importance of the study and the need for a more comprehensive research work.

    1. Is fraud the only criminal practices in the management responsibility?
    2. What are the causes of financial fraud in the system?
    3. Does fraud exist only in the top management level?
    4. Is there effective internal control system in checking management responsibilities in fraud?
    5. Is there success or failure in measuring the internal control machinery?
    6. What are those loopholes for fund siphoning in the system?

    1.6 Hypothesis

    • HO: most fraud are not caused by poor condition of service.
    • Hi: Most frauds are caused be poor condition of service.
    • Ho: Without effective control measure management cannot reduce fraud.
    • Hi: without effective control measure management can reduce fraud.

    1.7 The Scope of the Study

    This study focused on the management responsibility in fraud detection in budget cosmetics industry Nigeria limited Aba.

    This study will also investigate how fraud affects the reputation and image of any business organization.

    The study will identify the measures to be taken to prevent the risk of fraud in business organization.

    The study should have been wider but the choice of one state is however considered because of time and financial constraints.

    1.8 Limitation of the Study

    The limitations of the study are as follows:

    i. Uncooperative Attitude of Some Individual:

    Some of those who where asked to complete the questionnaires declined. This affected the amount of information available to the study.

    ii. Financial Constraint:

    The study should have been extended beyond Bergel cosmetics industry Nigeria limited Aba to include other towns if the researcher had adequate financial the study was limited to Aba.

    iii. Time Constraint:

    The study was carried out at a time other academic work placed much demand on the researcher, consequently the researcher did not have ample time to complete the study.

    1.9 Definition of Terms

    i Fraud:

    This is misrepresentation made knowingly with the intention to deceive.

    ii Fraud Booster:

    It refers to a person professionally training and equipped to detect fraud and fraud men.

    iii Fraud Men:

    It refers to those who are professionally habited to defrauding people of their legally acquired property or money.

    Iv Impersonation:

    This is the assuming of another person identity in computer processing environment.

    v False Document:

    A document that contains fictitious information but made to look real.

    vi Data Diddling:

    This involves the changing of data before or during input to computer.

    vii Token:

    As it is used in this work, it means customers possessions such as credit card etc.

    …

    CHAPTER TWO

    2.0 Literature Review

    2.1 Introduction

    This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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