Internal control system and fraudulent practices in the Nigerian public sector; a survey of Nigerian National Petroleum Corporation (NNPC) Nigeria
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Date
2018-10
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Publisher
Kampala International University, College of Humanities and social sciences.
Abstract
The researcher investigated the relationship, between ‘internal control system and fraudulent practices in the Nigerian public sector, a survey of Nigerian National petroleum Corporation (NNPC)’. The purpose of the study was to determine the Effect of Internal Control system on fraudulent in the Nigerian National Petroleum Corporation, Nigeria. The specific objectives were to determine the relationship between internal control system components (Control Environment, Risk Assessment, Control Activities, information and communication, and monitoring) and fraudulent practices in the Nigerian public sector. The study adopted a cross sectional research and descriptive research design in which data was collected and analyze using quantitative method. The sample size of 300 was selected from the target population of 1205 using Slovene ‘s formula. Results from the Pearson linear correlation and regression analysis shows that there is statistically significant relationship between the internal control system variables and fraudulent practices in the Nigerian public sector and internal control system have a negative Effect on fraudulent practices. Thus, Control Environment was regressed on Fraudulent Practices and the result of linear regression showed that R2=0.961. and significant at P <0.000; Risk Assessment was regressed on Fraudulent Practices and the result of linear regression showed that R20.951 and significant at P < 0.000; Control Activities was regressed on Fraudulent Practice and the result of linear regression showed that R20.936 and significant at P <0.000; Information and communication was regressed with Fraudulent Practices. The result of linear regression showed that R20.936 and significant at P < 0.000; monitoring was regressed with Fraudulent Practices. The result of linear regression showed R20.936 and significant at P <0.000. The results of mult4ile regression analysis performed simultaneously on the variables showed that information and communication control has a positive weak relationship with fraudulent practices, this suggest that improper information and communication control will aid the fraudulent practices instead of mitigating it. The researcher concluded that internal control system has a negative effect on fraudulent practices in the Nigeria public sector but the implementation of internal control is weak thereby making ineffective. The study contributed to the growing body of knowledge in the area of theories used td spur the effectiveness of internal control system and in understanding the motivation to fraudulent practices. The study recommends that those who are in charge of managing public funds should set the appropriate tone and demonstrate it through directives, actions, integrity and ethical values that support the functioning of the system of internal control system.
Description
A thesis presented to the college of economics in partial fulfillment of the requirements for the Award of Master of Science Degree in Finance and Accounting, Kampala International University Uganda
Keywords
Internal control system, Fraudulent practices, Nigerian public sector