CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
There is no gain saying the fact that Auditors are playing significant roles in every
performing organization. The role of internal Auditors to detect and prevent fraud
is one of the enormous roles of Auditors in an organization. Be it private or public
sector.
Therefore, fraud could be detected and prevented through regular internal check
and an efficient internal control. Prevention, at least reduction in possible with an
independent internal Auditor in place and division of duties where the work of one
person is put under the thorough examination of others member who has no part in
the actual performance of those duties.
The most frequent asset to be subject of fraud is of course cash and where cash has
been misappropriated. The following checks will normally be carried out by the
Auditors.
a. The power of defaulting employee, the exact nature and extent of his duties
should be established.
b. The bank must be cast and check fully with the bank statement and ensure
that all receipts were banked properly.
1

Therefore, fraud can be detected and prevented by the internal Auditors through,
internal checks and internal control in the organizations, without internal check or
control in the organization fraud cannot be detected.
In order for the research work to be consistent and readable, it is clear to give brief
background of the topic under research. the role of Auditors in the detection and
prevention of fraud in cooperate organization As this is the topic under research,
therefore the background should be on internal Auditor internal Auditors as the
title implies, are internal members of staff appointed by management to ensure the
provision of check and balance and necessary safeguard over the assets on an
enterprise and also promote operational soundness.

By nature of their

appointments, internal Auditors are supposed to be responsible to senior members

of management so that whatever they report on, can receive the deserved attention,
typically internal Auditors are supposed to be responsible for the following
functions in organization.
a. Inspecting records and reviewing procedures for correctness.
b. Offering advice and making recommendations regarding ways to improve
operational procedures and ensure adequate of control.
c. Carrying out special investigations to ascertain the causes of events like
unexplained discrepancies, exceptional number of errors fraud by the staff
etc.
2

d. Checking accuracy of transactions necessary authorizations and the

adequacy of accounting records.
e. Regular reporting of observation for necessary action by management.
1.2 STATEMENT OF THE PROBLEM
Every research is a problem induced and it is not unusual to hear cases of mismanagement involving employees of Yobe Broadcasting Corporation Damaturu.
Because of the frequent occurrence of fraud in organization and the emphasis on
the auditor to play a role in detecting and preventing fraud. Though the main duty
of the auditor by law is not to prevent or detect fraud. But in the course of this
work, he may come across the frauds which he has to report to the management
Even though it is difficult to discount the role of an effective system of internal
control in the control of (YBC) Damaturu (organization) operations, the trend in
the fraudulent activities and sharp practice within the sector seems to leave mush
to be desired. In spite of the poor financial state of these institutions, reports of
frequent cases of fraud remains a common thing. The research still recalls the
relative case which some frauds were executed and the ability of management to
redress this unfortunate situation.
A dangerous dimension to this issue is that frequent cases of fraud tends to
systematically erode the confidence of the investing public and those of intending
3

one alike in the industry, no matter how negligible this might be the problem that
YBC Damaturu facing is lack of massive training to its staff which led to fraud.
1.3

OBJECTIVE OF THE STUDY

The general aim and objectives of the study is to serve as a guide to the case study
and similar organizations or ministries to know the roles of internal auditors in the
detection and prevention of fraud in corporate organization, and auditors should
use modern Auditing techniques in the performance of their duties so as to produce
efficient and quality for excellence productivity.
However, the specific aims and objective of the study are:
i.

Examine the significant roles of internal auditors in the detection and

prevention of fraud.

ii.

Examine some factors that contribute to efficient discharge of auditing

work by auditors.

iii.

To identify if the detection and prevention of fraud is necessary to all

auditors in an organization while discharging their duties.

iv.

To identify if detection and prevention of fraud in an organization will bring

about higher productivity and quality of work.

v.

To identify whether detection and prevention of fraud imposes some

challenges in auditing work.
4

1.4 RESEARCH QUESTION

It is necessary to established research question which will act as guidelines
throughout the research work. There are as follow:
a. What are the significant roles of auditors in an organization?
b. Does the detection and prevention of fraud facilitate decision making in and
organization?
c. Does the introduction of modern auditing technique facilities the work of
auditors in an organization?
d. How can good auditors contribute toward achieving organizational goal and
objective?
1.5 HYPOTHESIS OF THE STUDY
Hypothesis provides a framework for drawing conclusion to drawn the attention of
the researcher to the aspect of the problem. A hypothesis may be prissily defined
as a tentative proposition suggested as a solution to a problem (Eguzarpe, 1997).
Hypotheses are in two types.
A null hypothesis which is a hypothesis state to no different or no relationship
between two or more variable and an alternative hypothesis which products a
different and indicates the expected direction of the differences. The hypothec of
the study are as follows: 5

Ho- Prevention and detection of fraud is not an significant measure of effective

enterprise performance in Yobe state broadcasting corporation Damaturu.
H1-Prevention and detection of fraud is an significant measure of effective
enterprise performance in Yobe broadcasting corporation Damaturu.
1.6 SIGNIFICANCE OF THE STUDY
The audit will investigate awareness on the fact of the management and media
houses on the need to institute an aggressive system of accounting and other
relevant control are the opposition of their organization as a positive step towards
fraud prevention.
It is also hoped that the research will equally a seed of the truth in the mind of
members of the management in other institutive and spur toward effective control.
1.7 SCOPE AND LIMITATION OF THE STUDY
Our research will mainly focuses on the various area (Departments) in yobe
Broadcasting Corporation (YBC) Damaturu which is our case study of this
research. But the intention is on the account and audit departments.
We delimitate this research work to the Yobe broadcasting Corporation Damaturu.
Delimitations are those factors that are inherent or affects the research work, such
delimitation includes;
a. Time constraints
6

b. Financial constraints
1.8 DEFINITION OF KEY TERMS
For the purpose of clarity and understanding of the concepts, the following words
are hereby defined:
Role: The degree of which somebody or something is involved in a situation or an
activity and the effect that they have on it. (Oxford advanced leaner dictionary 7th
Edition, 2005).
Auditor: A person who officially examines the business and financial records of
given company or organization. (Microsoft Encarta Dictionary 2007 version)
Detection: The process of detecting something the fact of being detected.
Prevention: The act of stopping something from happening.
Internal Auditing: Is an independent, objective, assurance and consulting activity
designed to add value and improve an organisations operations.
Fraud: The crime of cheating somebody in order to get money or goods illegally.
Organisations as the rational coordination of the activities of a number of peoples
for the achievement of some common explicit purpose of goal through achierarchy
of authority and responsibility.

Auditing: Auditing is the act of verifying already prepared accounting records

together with the policies and procedures that governed the preparation of such
records.
Damagum Y.M (2010) defined Internal Control as a system of control, financial
and otherwise established by the management in order to carry on the business of
the interposes.
Bank Statement: A printed record of all the money paid into and out of a
customers bank account within a particular period.
Broadcasting: The business of making and sending out radio and television
programmes.
Corporation: A large business company. Or a group or an organization that is
recognized by law as a single unit.

CHAPTER TWO
LITERATURE REVIEW
2.1

INTRODUCTION

According to Kafiya (2016) fraud can be defined as an aspect of corruption

normally happen in an organization where the government structure are weak,
which lead to the criminal deception.
Ogbemudia (2014) see fraud as embraces any cunning, deception or trick
employed to deceive or cheat anther. It includes all means which human ingenuity
can devise or employed to gain advantage by force suggestion or by suppression of
the truth.
According to UK financial act (1986) as cited in Musa (2006). Defined fraud as an
irregularity involving the use of criminal deception to obtain unjust or illegal
advantage. Fraud occurs in an organization through the following ways:
1. Manipulation of figures: this involves the accounting influence especially for one's
own advantage, to use sum of money by either lesser or greater than those actually
received.
2. Misappropriation of assets: Misappropriation is the fraudulent appropriation of
assets or property entrusted to your care but actually owned by someone else.
9

3. Improper recording of transaction: This is where a person may record a wrong

figure into the book of account. E.g. cash book, which is contrary to the actual
amount being spread.
4. Misapplication of accounting policies and procedures.
5. Omission of transaction from record: This is errors that occurs when a transaction
is completely omitted from the book of accounts. A common reason for this is the
loss or miss-placement of the source document for the transaction.
These views rotate to the organization under study which is Yobe broadcasting
corporation (YCB) Damaturu because they deal with money. It is an open fact and
universally deal with money is very prompt to fraud and misappropriate of funds
the researcher intends to use this to point out the theoretical frame work upon
which the researcher problem is based. An attempt to review the nature of fraud
will be clearly explained; also internal control system will be clearly elucidated in
the chapter of the research work. Emphasis will be placed on internal control as it
has wide applicability to a variety of organization regardless of their specific
objectives.
2.2 DUTIES OF AN AUDITOR

10

According to Damagum, (2015). In his lecturer note book he discuss about, the
law on the rights and duties of an auditor under the companies act is laid down in
section 14 and 19. That the following are provided for his duties:

a. To make report to the members on account laid before the members in general
meeting during his tenure in office.
b. To include in his report statement on the accounts that are in compliance with the
companies act and also account showing and give a true and a fair view.
c. To investigate whether or not proper book of accounts have been kept and proper
returns have been received from branches not visited by the auditors.
d. Right to access at all times to the books account and vouchers of the companies.
e. Right to receive notice of and attend meeting and to report on any matter which
concerns him.
2.3 BASIC QUALITIES REQUIRED OF AN INTERNAL AUDITOR
According to UK financial Act, (1986) as cited in Musa (2010). The basic qualities
required of an internal auditor are:
1. Competence:

An auditors must be thoroughly trained and proved his

appetence before he sign audit report.

2.

Honest: An auditor must be a person of integrity, he must be very

incarnation of honest and for a character that will not be easily succumb to
stands in a position of trust with his client.

11

3. Confidentiality: The auditor is required to report confidentiality of the

information he gathered in the course of his audit exercise. He stands in a
position to plan his work in details and in orderly manner. For one to be an
internal auditor he may be or may not be a member of imitate of accountant
in Nigeria or a member of a body of accountant in Nigeria established for
time to time by an act or decree as provided by sec, 358(1) CAMA,
Therefore, sub section (2] of this section provided that none of the following
person(s) shall be qualifying for appointment as an auditor of a company of
organization. a. Officer or servant of the company or organization
b. A person who is a partner of or in the employment of an officer or servant of a
company.
c. A person or firm who or which offence the organization professional advices in
consultancy capacity in respect of secretariat, taxation or financial management.
d. A corporate body
Furthermore, can safeguard his independence by:
Avoiding financial relationship with the company he is to audit.
Not engaging in social relationship with the companys staffs or member of
the management of the company being audited.
12

 Avoiding blood relationship- meaning not accepting an audit work where

blood relations are directly involved either as shareholders or directors.
Not engaging in possessing direct or indirect beneficial interest in any
company for which he is acting as auditors.
2.4

OCCURRENCE OF FRAUD

According to Damagum (2015), fraud usually occurs when there are weaknesses in
the system of internal control allowed on individual to perpetrate fraud and have
low risk of being detected. An adequate system of internal control should be
designed in part of prevent or rapidly detect frauds. By definition, internal control
is the whole system of control, financial or otherwise established by the
management orderly and efficient manner to ensure adherent to management
policies, safeguarding the assets and secure as far as possible the completeness and
accuracy of the records. however, Boynton (1983) note that there are three (3)
type of fraud for which internal control may not be prevent.
Fraud perpetrated by management, by overriding the control may not
prevent.
Fraud is when a large amount of money or valuable property is
misappropriated in a minor, who is likely to be discovered immediately and
perpetrators usually disappear without being caught.
13

 Fraud that arise as a result of collision of two or more members of staff

responsible for operating the system.
2.5 COMMITMENT OF FRAUD
According to Kell (2011). The motivation factors which has been explained in
terms of the brewing rationalization and apart from that it is used as fortification
for dishonest act. And also the intention for fraud commitment often arise after an
employee has made genuine mistakes, find out such was discovered by other and
so, he is tempted to repeat it again what can therefore be conducted from the above
review is that employees will often yet be tempted into indulging in fraudulent acts
as a result of problem, the knowledge of which to them cannot be shared with any
person. And also according to Section 380 (1) of the criminal code of Canada
provides the general definition for fraud in Canada.
Whether or not it is a false pretence within the meaning of this act, defrauds the
public or any person, whether ascertained or not of any property, money or
valuable security or any service.
Is guilty of an indictable offence and liable to a term of imprisonment not
exceeding fourteen years, whether subject matter of the offence is a
testamentary instrument or the value of the subject matter of the offence
exceeds five thousand dollars, or

14

 Is guilty (i) of an indictable offence and is liable to imprisonment for a term

not exceeding two years, or (ii) of an offence punishable a summary
conviction whether the value of the subject matter of the offence does not
exceed five thousand dollars.
In addition to the penalties outlined above, the court can also issue a prohibition
order under 5.380.2 (preventing a person from seeking, obtaining or continuing
any employees or be coming or being a volunteer in any capacity that involves
having authority over the real property, money or valuable security of another
person).
2.5.1 TYPES OF FRAUD
According to Kell. (2011), There are two (2) main types of fraud:
a. Defalcation: involving either misappropriation of money or goods by
employees or a company or other firms.
b. The fraudulent manipulation of the account not involving defalcation i.e. the
manipulation of the account accompanied by actual theft of assets Kell (2011)
defalcation involving either misappropriation of money or goods.
This is a situation where by the accounting staff of a company is not subject to any
form of check then the chance of committing fraud are so frequent and the method
necessary to conceal it so comparatively simple, that is safe to say that no business
15

will be carried on his condition for a very long time without the risk of fraud
taking place.
Fraudulent manipulation of account unaccompanied by actual theft of assets: The
process of falsification of account without the corresponding defalcation i.e. it is
accompanied by actual theft or asset and usual comes out by the director of a
company. This occurs not frequent as actual stealing of cash or goods but it occurs
it will involves large amount, it is only to inflate price of the companys share or
postpone the collapse of the company or as the directors no doubt hope to save it
from. Kell (2011).
2.5.2 COMPUTER FRAUD
In the last fifty (50) years, most organization has witness a continuity progress
toward full computerization on its operations, for that it helps to case and fastens
the work being done it is noted that computerization has also opened a new
dimension for fraud perpetration. We noted that computer frauds are so difficult
that their detection are not easy to trace. Kell, (2011).
And also according to Jaishankar, (2012) defined. Computer crime or cybercrime
as any crime that involves a computer and network. The computer may have been
used in the commission of a crime, or if may be the target.

16

Jaishankar, (2012). He further defined cybercrime as: Offences that are

committed against individuals or groups of individuals with a criminal motive to
intentionally harm the reputation of the victim or cause physical or mental harm,
or loss, to the victim directly or indirectly, using modern telecommunication
network such as internet (chat room emails, notice boards and groups) and mobile
phones (SMS/MMS) such crimes may threaten a nations security and financial
health.
Citation needed issue surrounding these types of crimes have become high profile
particularly those surrounding hacking copyright infringement child pornography,
and child grooming.
There are also problems of privacy when confidential information is intercepted or
disclosed, lawfully or otherwise.

Debarat. &Jaishakar, (2012) further define

cybercrime from the perspective of gender and defined cybercrime against women
as crime targeted against women with a motive to intentionally harm the victim
psychologically and physically, using modern telecommunication networks such
as internet and mobile phones.
2.6 DETECTION OF FRAUD
Though to general public and many clients the discovery of fraud is primary
function of the auditors and over showing his other duties entirely it is far correct
there can be no question that is of great importance. Fraud has over the years
17

becomes both a national and international problem with supplicated and

advancement in technology, people who perpetrated fraud has also become equally
supplicated and advanced in them modes of operation.
According to Damagum [2015] the issue of fraud has always been of interest to the
general public. One of the question that is always and often asked is, who should
be blamed or hold responsible for a lose arising out of an enterprise, the
management or the auditors.
2.7 PREVENTION OF FRAUD
According to Kayadi (2011) fraud: detection and prevention hand-out. Fraud can
be prevented through regular internal check and on efficient internal control
system being put in place. Prevention or at least reduction is possible with an
independent internal auditor in place and the division of duties where the work of
one person is put under the thorough examination of the others. Member who has
had no part in the actual performance of those duties.
Under defalcation of money or goods the investigation conducted will depend on
the nature of the case and it is necessary to evaluated carefully the system of
internal control in the affected area. The frequent assets to be subject of fraud are
of course cash has been misappropriated. The following check will normally be
carried out by the auditors:

18

 The power of deflating employees, the exact nature and extent of his duties
should be established.
The cash book must be cast and check fully with the bank statement and
ensure that all receipts were banked properly.
Petty cash book should be vouched.
The correctness of payment for wages and salaries must be cheque is the
same as the one in the cash book.
Cash sales must be vouched i.e. particularly attention must be paid to the
adequately of the system intend relating to the cash sales and weakness
should be reported to the creditors shareholders. All these prevent future
fraud of cash, defalcation with adequate check.
2.8 RESPONSIBILITY FOR FRAUD DETECTION AND PREVENTION
(Kell 2011). Explain that the responsibility for fraud detection and prevention is
Due in part to the phenomenal losses in the saving and loan industry, a controversy
has existed concerning the role of the external auditor and the public`s exceptional
role.
SAS No 53, the auditor responsibilities, issued by standards bond (2010) was
originally intended to address this problem. However, the public oversight board
of the AICPA SEC practice section concluded in (2013) that management be levied
19

that auditors had a greater responsibility for the defection of fraud than was
currently being met. Business owners, legislator, judges, juries, and the general
public also share such beliefs most people do not realized what the responsibility
of the auditors is. According to SAS No 1, confiscation of auditing standards and
produces.
`The auditor has a responsibility to plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement, whether caused by error or fraud. Because of the nature of audit
evidence and the auditor is able to obtain reasonable, but not absolute, assurance
that material misstatements are detected the auditor has no responsibility to plan
and perform the audit to obtain reasonable assurance that misstatements, whether
caused by error or fraud, that are not material to the financial statements are
detected.
2.9 THE ROLE OF INTERNAL CONTROL IN FRAUD PREVENTION
Internal controls are those procedures adopted by management in order to ensure
an efficient and effective use of scarce resources and maximize the risk of fraud
and errors to which the business is exposed. It is the network of control established
of the company (Battery, 1986).
The internal control system can be seen on the whole system of control financial
which established by the management of a company in order to ensure orderly and
20

efficient operations, to secure it asset and ensure compliance with management

policies and also compliance and accuracy of the records. The individual within
the organization is refers to as internal control.
It is the duty of the management to consider and set up an adequate system of
internal control for the enterprise. And the appropriate internal control adopted by
the management will be determine by the constrain facing the business as regards
the scarcity of resource and management assessment of the nature of the risk of
fraud and error to which the business is expected.
Simson, (1986). As mentioned in Musa (2010). Revealed in the working that the
purpose of setting up internal control catcher a peculiar, but to set-up value which
will protect work employees against these weakness, strung ones from
opportunities and the innocent from involvement. The role of internal control
system is new beyoung separation of function, while this are, as follows:
Internal control system is the whole system of control, financial and otherwise
established by the management in order to carry out business of the enterprise in
an orderly and sufficient manner, ensure as for a possible the completeness and
accuracy of records the common factor of the fore going definition is that it
enbiaces all nature of internal control and related annul measures within an
organization. In this we have some common terms as:

21

 Internal check: - This term dented the systematic organization of clerical

duties and routine procedures in such a way to ensure the fraud and
irregularities are impossible without conclusion and that innocent mistakes
are detected and corrected at any early stage. Internal check form an internal
part of internal control system. (Musa. A. Y 2010)

Internal audit:- it usually set up to ensure that formulated policies are

properly administered and executed and to determine that internal control
system is fortuning effectively. (Musa. A. Y 2010)

According to Daniel (2013). Further says there are several keys to effective fraud
prevention, but some of the most important tools in the corporate tool box are
strong internal control check equally important, through the company`s attitude
toward fraud internal controls and on ethical organizational culture.
The focus of this article is on strengthening internal controls. According to the
committee of sponsoring organization (Coso), internal auditor control is broadly
defined as a process, effected by on entity`s board of directors, management and
other personal, designed to provide reasonable assurance regarding the
achievement of objective in the following categories:
Effectiveness and efficiency of operations, reliability of financial reporting and
compliance with applicable laws and regulation.

22

Internal controls should not be thought as static they are a dynamic and fluid set
of tools which evolve over time as the business, technology and fraud environment
changes in response to competition, industry practices, legislation, regulation and
current economic conditions.

23

CHAPTER THREE
RESEARCH METHODOLOGY
3.1

RESEARCH DESIGN

According to Asika (2010), in order to use data for the objectives of a research,
they have to be reduced to manageable dimensions, hence the collection,
presentation and analysis of data are the whole and entire basis of a research study.
Research methodologies describe the method and procedure of data collection
used in carryingout research work.
The uses of some questionnaire were distributed to the respondent in order to
gather instruction. These analysed using chi-square method to determine the
decision rule.
3.2 POPULATION OF THE STUDY
The research Population according to Dandago, Habu (2012) identifying the
characteristics which member of the universe have in common and which will
identify such unit as being a member of a population group.
In this research, the research used a sampling techniques to assess how good
internal control is effectively used in operation in Yobe Broadcasting Co-operation
(YBC) Damaturu, and how the system helped the management in detecting and

24

preventing fraud in the course of this research, questionnaire were prepared and
distributed to Heads of Department, Senior and junior staff of the organization.
3.3

SAMPLING TECHNIQUE

Sample refers to the selected members of the entire population for use in the study.
Adefila (2010).
The sampling is the selection of element with the intention of finding something
about the population from which they are taken, to carrying out research work of
this nature sometimes the population could either be larger or small. The sampling
technique for the study is random, sampling technique in which each audit staff
has equal chances of appearing is the sample in order to provide the accurate
reliable answer to the research hypothesis. A sample size of (20) respondents
which is equivalent to 100% were considered to represent the population size.
3.4 TYPES OF DATA
This is the means of collecting data through primary and secondary source. For
this research work the two method of data collection were applied i.e. primary and
secondary method.
Adefila (2010) classified data into primary and secondary sources.

25

primary method: This method of data collection it use for collection of research
data through questionnaire, observation and preview on the research population,
but for this research work the research work questionnaire was adopted.
Secondary method: this method of data collection is use for collecting research
information though, textbook, and journal, newspaper in library or internet. For
this all the source were adopted to develop the literature and research analysis.
3.5

METHOD OF DATA ANALYSIS

The data collection were analysed with the view to finding solution to the
problems. The value of the response gathered is computed and analysis using
simple percentage (%) and chi-square method.

26

CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF RESULT
4.1 DATA PRESENTATION
This chapter presents and analysed the data collection from various departments in
Yobe Broadcasting Corporation (YBC) Damaturu, Yobe state. It was based on the
information received from these officers and department that summary was drawn
up in all, a total (30) thirty questionnaire was distributed to the account and
administration staff of YBC. Twenty (20) out of the thirty (30) were completed and
returned. Interpretations of the data are to be presented below. The percentages are
to be given to the nearest while number.
PERSONAL DATA OF RESPONDENTS
Table one: Respondents sex:
Variable
Male
Female
Total
Field survey, 2016.

No of respondent
12
8
20

Percentages%
60
40
100

The above table reveal that twelve (12) respondents representing 60% are male,
while eight (8) respondents representing 20% are female.
From the above table we realized that must of the respondent are male.
Table two: Age of the respondents:
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Variable
20-25years
26-30years
31-35years
36 years and above
Total
Field survey, 2016.

No of respondents
2
5
13
20

Percentages%
10
25
65
100

The table above show that two (2) respondents representing 10% are of age range
of 20-25years. Five (5) representing 25% are of the age range of 26-3Oyears.
Thirteen (13) of the respondents representing 65% are of the age range of 36-40
years.
In the above table analysed, the group 31-35years has the highest number of
respondents. Therefore, more information will be source from them.
Table three: Qualification of respondents:
Variable
BSC/HND
NCE/Diploma
Other
Total
Field survey 2014.

No of respondents
16
4
20

Percentages%
30
20
100

The above table reveal that, sixteen (16) of the respondents representing 30% are
BSc and HND holders where as four (4) of the respondents representing 20% are
Diploma and NCE holder.
Based on the above observation made, most of the staff are BSc/ HND holder.
28

Table four: Designation of respondents:

Variable
Accountants
Auditor I
Auditor II
Admin office
Total
Field survey; 2016.

No of respondents
4
8
4
4
20

Percentages%
20
40
20
20
100

The table above indicates that, four (4) of the respondents representing 20% are
accountant I, eight (8) of the respondent representing 40% are Auditor I, four (4)
of the respondent representing 20% are Auditor II and four (4) of the respondent
representing 20% are administrative officer.
In the table above we have highest number of Auditor I therefore fraud can be
detected and prevent easily because we have highest no of Auditor to investigate
on our issue
Table five: Department:
Variable
Accounting unit
Internal Audit unit
Admin Determent
Total
Field survey 2016.

No of respondents
4
12
4
20

Percentages%
20
60
20
100

The above table show (4) of the respondents representing 20% are in account unit,
twelve (12) of the respondent representing 60% are in the internal Audit unit
whereas four (4) of the respondent representing 20% are in admin department.
29

In the above table we observe that the highest no of respondent are in internal unit
therefore it will make our job easily.
Table six: Whether or not the organization can perform well without internal audit:
Variable
True
False
Dont know
Total
Field survey 2016.

No of respondents
16
4
20

Percentages%
30
20
100

The above table indicate that sixteen (16) of the respondent representing 30% says
it is true while four (4) of the respondents representing 20% says it is not true and
none of the respondent says doesnt know.
In the table above many of the respondent say Yes because without effective
internal audit the organization cannot perform effectively, these statement is true.
Table seven: Auditors poor foundations contribute to ineffective performance of
audit duties:
Variable
Agree
Disagree
Dont know
Total
Field Survey 2016.

No of respondents
10
8
2
20

Percentages%
50
40
10
100

The above table shows that, ten (10) of the respondent representing 50% agree that
auditors poor foundation contribute ineffective in auditor performance, eight (8) of
30

the respondent representing 40% disagree and two (2) of the respondents
representing 10% doesnt know.
In the table above majority of the respondent agree, that poor foundation
contribute to in-effective performance of audit duties.
Table Eight: Whether or respondent understand the concept of internal audit:
Variable
Yes
No
Total
Field Survey 2016.

No of respondent
18
2
20

Percentages%
90
10
100

The table above shows that, eighteen (18) of the respondents representing 90%
known that fraud is all about, while two (2) of the respondents representing 10%
are not aware of what fraud is.
In the table above shows that, 90% of the respondent they know what fraud is all
about.
Table Nine: Type of fraud normally occurred in the organization:
Variable
Teeming and lading
Defalcation of money
Manipulation of Account
Total
Field Survey 2016.

No of respondent
6
6
8
20

31

Percentages%
30
30
40
100

The table above reveals that six (6) of the respondent representing 30% says
teeming and lading type of fraud usually occurred in the organization where a six
(6) of the respondents 30% against is defalcation of money and goods and eight (8)
of the respondents representing 40% says is fraudulent manipulation of account.
Therefore, in the table above 40% says that fraud normally occurred in
manipulation of account
Table Ten: Person that is responsible for detecting fraud:
Variable
Auditors
Management
Management & Auditors
Total
Field Survey 2016.

No of respondents
4
4
12
20

Percentages%
20
20
60
100

The table above maintained that four (4) of the respondents representing 20% says
is auditor that are responsible for detecting and prevention of fraud in an
organization while four (4) of the respondents say it is the management and twelve
(12) of the respondent say it is management and auditors.
In the table above we observed that the higher numbers of respondent are
management and auditors therefore, they are responsible for detection and
prevention of fraud.
Table Eleven: Levels of staff are mostly involved in case of fraud:
32

Variable
Top management level
Middle management level
Lower level
Total
Field Survey 2016.

No of respondents
16
2
2
20

Percentages%
80
10
10
100

The table above reveal that, sixteen (16) of the respondent representing 80%
behaves that top management staff usually involved in fraud cases in an
organization, while two (2) of the respondents representing 10% says of his middle
management staff that usually involves in fraud in an organization two (2) of the
respondents representing 10% says it is lower management that usually involved
in fraud cases in an organization.
Therefore, the truth is that top management level mostly involved in cases of
fraud.
Table Twelve: Internal control system established in the organization is adequate
in prevent fraud:
Variable
Yes
No
Total
Field Survey 2016.

No of respondents
15
5
20

Percentages%
75
25
100

The above table reveal that fifteen (15) of the respondent representing 75% agree
that internal control in the organization is adequate to prevent fraud occurrence
and five (5) of the respondents representing 25% disagree.
33

Therefore, 75% of the respondent agrees that internal control in their organization
is adequate to prevent fraud occurrence.
Table Thirteen: Measure used in the organization to detect and prevent fraud
Variable
Exhaustive checking
Examination of document
Third party conformation
Routing checking
Total
Field Survey 2016.

No of respondents
3
3
6
8
20

Percentages%
15
15
30
40
100

The above table indicate that, three (3) of the respondent representing 15% says
the measure taken by their organization to detect fraud and prevent fraud is
through exhaustive checking while three (3) against representing 15% says is
through examination of documents evidence, six (6) of the respondent representing
30% says it is through third party conformation and eight (8) of the respondents
representing 40% says it is through routine checking.
Therefore, 40% are the highest percentage of respondents that says through routine
checking; fraud can be detected and prevented more easily.
Table fourteen: where the tittle (your so-called question)
Variable
Once in a month
Twice a month
Yearly
Total

No of respondents
4
8
8
20
34

Percentages%
20
40
40
100

Field Survey 2016.

The above table reveal that, four (4) of the respondents representing 20% laments
that fraud occurs once in a month in the organization, while eight (8) maintained
that fraud occurs twice in a month in the organization and sixteen respondent
against maintained that fraud occurs yearly, in the organization.
In the table above agree with those that say that fraud mostly occurs twice in a
month.
Table fifteen: Reasons for committing fraud:
Variable
Lack of motivation
Lack of skills
Lack of adequate internal control
Total
Field Survey 2016.

No of respondents
5
5
10
20

Percentages%
25
25
50
100

The table above reveal that, five (5) respondents representing 25% lament that
employee commit fraud due to lack of motivation five (5) again maintained that
employee commit fraud due to the lack of skills and ten (10) of the respondents
representing 50% maintained that it is lack of adequate internal control system.
Table sixteen: Whether or not modern office automatic constitute audit threa
Variable
Yes
No
Total

No of respondents
5
15
20
35

Percentages%
25
75
100

Field Survey 2016.

The above table reveals that, five (5) of the respondents representing 25%
maintained that modern office automation courses threat to their work. While
fifteen (15) of the respondent representing 75% maintained that the office
automation is not threat to their work.
Table Seventeen: whether or not modern office equipment (computer and
accounting machine) available in the organization:
Variable
Yes
No
Total
Field Survey; 2016.

No of respondents
15
5
20

Percentages%
75
25
100

The table above maintained that, fifteen (15) of the respondents representing 75%
says that they have modern office equipment while five (5) of the respondents
representing 25% lament that they dont have the modern office equipment.
Table eighteen: Modern office automation increase the quality to work in the
organization:
Variable
Yes
No
Total
Field Survey 2016.

No of respondents
12
8
20

36

Percentages%
60
40
100

The above table reveal twelve (12) of the respondents representing 60% says
office automation has drastically increase the quality of their, while eight (8) of the
respondents representing 40% says the automation of the office did not increase
the quality of work in their organization.
Table Nineteen: Whether or not the organization has special training for audit
skills:
Variable
Yes
No
Total
Field Survey 2016.

No of respondents
5
15
20

Percentages%
25
75
100

The above table reveals that five (5) of the respondents representing 25% says that
there is a special training usually organized to improve their audit skill while
fifteen (15) of the respondent says there is no training organized. in them to
improve their audit skills.
Table Twenty: Periodical Routing of auditor Training programme:
Variable
Annually
Quarterly
Monthly
Total
Field Survey 2016.

No of respondents
5
10
5
20

37

Percentages%
25
50
25
100

The above reveals that, five (5) of the respondents representing 25% says auditors
go for training annually in their organization, while ten (10) of the respondents
representing 50% lament that audits go for training quarterly in their organization
and five (5) of the respondents representing- 25% lament that audit go for training
monthly in their organization.
4.2

TEST OF HYPOTHESIS

In this hypothesis, the chi-square test is going to be used in testing the hypothesis.
A decision rule will be the basic for the acceptance or rejection the null hypothesis
(Ho) there are risk or operating a decision rule of Owen and James (2010) that is
making two types of errors
1. Type 1 error: - rejecting the null hypothesis (H0) when should be accepted.
2. Type 2 error: - accepting the null hypothesis (H1) when it should be rejected.
Chi-square (x2) distribution as a test of signature of null hypothesis (H o) an
alternative hypothesis (H1) is also formulated so that rejection of the automatically
involved the acceptance of the H1 (Horthy 1991). The probability of a type 1 error
is called the level of significance of 99% and 1%.
The following hypothesis are test based on research received from the research
question 8,12, and 16 detection and prevention of fraud in corporate organization.

38

H0 Prevention and detection of fraud is not an significant measure of effective

enterprise performance in Yobe state broadcasting corporation Damaturu.
H1-Prevention and detection of fraud is an significant measure of effective
enterprise performance in Yobe broadcasting corporation Damaturu.
Response from the research questions 8,12,16,17,18 and 19, are used in testing the
hypothesis which represents the observed frequencies. The researcher further
assumed that the level of significances is 5% or 0.05 responses to question
8,12,16,17,18 and 19, are show in the table below:
OBSERVATION FREQUENCY TABLE
Responses

Q8

Q12

Q16 Q17

Q18

Q19

Total

Yes
No
Total

18
2
20

15
5
20

5
15
20

12
8
20

5
15
20

70
50
120

15
5
20

COMPUTATION OF THE FREQUENCY

CT x RT
GT
Where:
CT= Colum Total
RT= Raw Total
GR= Grand Total
Total Raw: Yes

= 20 x 70
120
Total Colum: No = 20 x 50

= 11.7
= 8.3
39

120
Chi-square formula: X =
2

Fo Fe2
E

EXPECTED FREQUENCY TABLE

Responses

Q8

Q12

Q16 Q17

Q18

Q19

Total

Yes
No
Total

11.7 11.7
8.3 8.3
20
20

11.7 11.7
8.3 8.3
20
20

11.7
8.3
20

11.7
8.3
20

70
50
120

CHI-SQUARE TABLE
S/No

O-E

(0-E)2

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

18
15
5
15
12
5
2
5
15
5
8
15

11.7
11.7
11.7
11.7
11.7
11.7
8.3
8.3
8.3
8.3
8.3
8.3

6.3
3.3
-6.7
3.3
0.3
-6.7
-6.3
-3.3
6.7
-3.3
-0.3
6.7

39.69
10.89
44.89
10.89
0.09
44.89
39.69
10.89
44.89
10.89
0.09
44.89
Compute
value

COMPUTATION OF CHI-SQUARE
Degree of freedom (DOF) = (R-1) (C-1)
Where:R = Row
40

(0-E)2
E
3.4
0.9
3.8
0.9
0.008
3.8
4.8
4.8
3.8
4.8
0.012
3.8
31.332

C = Column
1 = Constant
R=2
C=6
Chi-square level of significant = 0.05 Degree of freedom
(R -1) (C -1)
(2-1) (6-1)
1X5
=5
The level of significance is 5% or 0.05 and the confidence interval is 95% now the
DOF is 5 going through chi-square table under 5 with 0.05 confidence interval is
11.070
Therefore critical value as obtained from chi-square table is 11.070 while the
computed test is 31.332
REJECTION,

ACCEPTANCE,

DECISION

OR

CRITERIA

AND

CONCLUSION
The cut-off point in chi-square (X2) table is 11.070 and the computed value is
31.332 is greater than the critical value (11.070) from the table we reject the null
hypothesis H0 Prevention and detection of fraud is not an significant measure of
effective enterprise performance in Yobe state broadcasting corporation Damaturu,

41

H1-Prevention and detection of fraud is an significant measure of effective

enterprise performance in Yobe broadcasting corporation Damaturu

CONCLUSION
Since the computed value is greater than the critical test value (i.e. 31.332 >
11.070) we therefore conclude that, the effective prevention and detection of fraud
in YBC Damaturu would minimize the occurrence of fraud and ensure
accountability
4.3 DISCUSSION OF FINDING
From the data presentation, interpretation and analysis in this chapter, the findings
are as follows;
i.
ii.
iii.
iv.
v.

The organization recorded some cases of fraud based on their responses.

In the organization fraud occurs on many occasion
Those who are mostly involved in the case of fraud are the top management staff.
In the organization, all the staff are knowledgeable about what fraud is all about.
There is need of both auditors and management in detecting and preventing fraud

vi.

and errors.
In the organization, employees annually fraud due to inadequate internal control
system.

42

CHAPTER FIVE
SUMMARY RECOMMENDATIONS AND CONCLUSION
5.1 SUMMARY
This chapter comprised the summary, conclusion as well as recommendation of the
whole research work, in line with the requirement of the policy of research work.
They was drawn from the whole work and the findings, conclusion based on the
overall research work, and lastly recommendations for consideration and
implementation, as remedies to some of the constrain already highlighted in the
work by the researcher.
The roles of internal auditor in detecting and preventing fraud in an organization
cannot be overstressed. Auditors whenever they work are in fact were important
than the other staff due to their skills and competency as well as the important duty
they perform in every organization. In seeking for reliable information on this
questionnaire was distributed to various respondents and later the major findings
are as well as follows:
a. It has been discovered that the organization cannot perform effectively and
productively without competent and skilful auditors, also poor foundation of an
officer contribute in-effectively on productivity in an organization. Also

43

discovered that majority of the staff is fully aware of what is all about. These are
clearly justified in tables 6, 7 and 8.
b. Based on the findings, I discovered that the most common types of fraud
usually occurred in an organization is through fraudulent manipulation of
accounts.
Also findings reveals that both management and internal audits are responsible for
the detection and prevention of fraud in an organization, also realized that top
management level staff are mostly involved in cases of fraud in an organization.
These are clearly indicated in table 9, 10 and irrespectively.
c. From the finding, it has been discovered that fraud occurred due to lack of
adequate internal control system in an organization, also discovered that Yobe
broadcasting corporation believe in routine checking as a measure used in
detecting and preventing of fraud, it has also been realized that the fraud occurred
twice in a month and at times yearly.
d. Findings reveal that an introduction modern office machine to auditor has
increase the quality of their work. It also been realized that Yobe Broadcasting
Corporation are not serious about the training and retraining of auditors staff and
this contributes to inefficiency in the discharge of the auditor work. There are
justified in table 18, 19, and 20.

44

5.2 CONCLUSION
Conclusively, the role of internal auditors, the success of any organization is
determined by how well the auditors perform their duties in that organization,
because it is apparent that auditor responsibility are vital aspect of any
organization activities. Considering the fact the auditors has become more aware
and enlighten the vital roles of organization performed by the auditor is better
appreciation. Infect, there is no organization that is not prospering without good
internal auditors due to their importance which highlight their sound training and
individual activities. It is therefore not equally surprising that auditors have
contributed (and contributing] to the overall success of the organization under
study and other organization within the country.
5.3 RECOMMENDATIONS
Looking in to the constraint faced by the auditors in understanding their activities,
the following are recommendation as possible remedies to some of problems
studied.
a. It is recommended that the institution should provide the much needed modern
equipment, material training centres for auditors so as to ensure effective
performance of the auditors in the organization.

45

b. The organization should organized workshop for auditors, accounting staff and
general administration so that can improve then skills, for instance, we are in the
era of computer, and it should be made possible for all the auditors in the
organization to be computer literate.
c. Execution also on their own side should try to delegate responsibilities to their
duties i.e. by allowing doing their auditing work properly as well as by using the
experience they have e.g decision making and any other so as to ensure good will.
d. The auditors should avoid any situation that may lead them to comprise their
professional integrity.

46

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48