Full Project-PROBLEMS OF FRAUD AND THEIR SOLUTIONS IN FINANCIAL INSTITUTIONS
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CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Over the years, irregularities have been the problems of commercial banks. The term irregularities are used to refer to intentional distortion of financial statement and misappropriation of assets for whatever purpose. Fraud is one type of irregularities. Fraud, in auditing guideline, is used to refer to irregularities involving the use of criminal deception to obtain unjust or illegal advantages. Fraud may entail that proper accounting records have not been properly maintained, it may also point out that some internal control system are not effective and could not form a reliable source of information for an auditor. Existence of fraud in a financial statement endangers it from showing a true and fair view and complying with the provision of the companies and Allied Matter Acts (CAMA) 1990. Therefore, fraud in banks must be looked at generally as “acts that involves the loss of assets by banks through dishonest and deceitful means. The fraudster intentionally but dishonestly benefit himself to the detriment of the bank, the bank staff, bank customers and any other member of the public via banking operations. Fraud can be committed by bank staff, bank customers or a third party that is noncustomer (Eze, 2004).
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