Financial statement fraud and growth of the Financial Sector in Uganda: A case study of Centenary Rural Development Bank.
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Date
2018-08
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management Sciences .
Abstract
The purpose of this study was to investigate the effect of financial statement fraud
on growth of financial sector in Uganda undertaking Centenary Rural Development
Bank (CRDB). The study was based on the following 3 objectives; (i) to assess the
effect of prevention of financial statement fraud on growth of CRDB; (ii) to establish
the effect of detection of financial statement fraud on growth of CRDB; and (iii) to
evaluate effect of response to financial statement fraud on growth of CRDB. The
study adopted descriptive survey design and a sample size of 80 from a target
population of 100 respondents were selected for the study. In regard to effect of
prevention of financial statement fraud on growth of CRDB; the study found out that
prevention of financial statement fraud is positively (~=0.389) and statistically and
significantly (sig-value=0.004) affect growth of CRDB, Uganda. In regard to effect of
detection of financial statement fraud on growth of CRDB; the study found out that
detection of financial statement fraud is positively (~=0.549) and statistically and
significantly (sig-value=O.OOO) affect growth of CRDB, Uganda. In regard to effect of
response to financial statement fraud on growth of CRDB; the study found out that
response to financial statement fraud is positively (~=0. 709) and statistically and
significantly (sig-value=O.OOO) affect growth of CRDB, Uganda. The study concluded
that; that prevention of financial statement fraud significantly affect growth of CRDB,
Uganda; detection of financial statement fraud significantly affect growth of CRDB,
Uganda; and response to financial statement fraud significantly affect growth of
CRDB, Uganda. The study recommended that; bank hire an external auditor to
assess the effectiveness of the internal control design for the financial statement
process; bank's management should clearly describe what constitutes financial
statement fraud to assist the individual in reporting the misconduct; the research
also suggests the availability of whistle blowing and hotline channels to directly
report to the bank's management; and the commitment from the bank's individuals
should be done through the affirmation process.
Description
A research report submitted to the College of Economics and
Management in Partial Fulfillment of the Requirement for the
Award of Bachelor's Degree in Business Administration finance
and Accounting of Kampala International
University Kampala,
Uganda.
Keywords
Financial Sector, Fraud and Growth, Financial statement, Centenary Rural Development Bank