Internal Control; A Management Tool For Control And Prevention Of Fraud In The Banking Industries (A Case Study Of Sterling Bank Of Nig Plc)

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Project and Seminar Topics with material for Banking and Finance BF

Project and Seminar Topics with material for Banking and Finance BF


This project work is dedicated to almighty God for his supernatural wisdom to accomplish this project work. I also dedicate this work to my ever loving Husband, Maurice EGuzoro and to my daughter CHIAMAKA Eguzoro for their untiring and relentless efforts to make me a graduate.


I wish to express my profound gratitude to almighty God for his abundant love mercy, his inspiration, confidence and Divine guidance in seeing me throughout the course and duration of my study and project work.

I appreciate and acknowledge all the efforts and financial assistance giving to me by my wonderful and beloved husband support MAURICE EGUZORO And to my parent Mr. and Mr. OCHULOR NDUBUISE for their encourage and prayers.

I hereby express my immense gratitude to my project supervisor ELDER T.c NGWU for his advice and tolerance who set a pace for this work with quality goal attached to made my project a reality. And to all my course mates and friends for their academic companionship during the course of study may god reward abundantly.


This study is aimed at the evaluation of internal control as a management tool for control and prevention of fraud in the banking industry. A critical assessment of Union Bank of Nigeria plc. Prior to this time, there has been unprecedented explosion of fraud in the banking industries.

But in line with the technological innovation of skills among the management and staff, some control procedures and methods had been implemented as a tool to control and prevent fraud in the banking industry such as recruiting staffs in required positions.

The data used in this research were collected from various source, which include textbooks, journals sources and internet. Questionnaires also administered to bank staffs and customers so as to obtain the required information.

The response from the questionnaires were critically analyzed and tested using chi-square (x2) since internal control is an essential tool for control and prevention of fraud in the banking industry, the tool include adequate record and documentation, physical control over assets and records, adequate separation of duties etc. if these tools are add reseed, there will be an efficient control and prevention of fraud in the banking industry.

Table Of Content

  • Title page
  • Approval page
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of content

Chapter One

  • 1.0 Introduction
  • 1.1 Background of the study
  • 1.2 Statement of the problem
  • 1.3 Objective of thee study
  • 1.4 Research questions
  • 1.5 Statement of hypothesis
  • 1.6 Significance of the study
  • 1.7 Scope of the study
  • 1.8 Limitation of the study
  • 1.9 Definitions of term

Chapter Two

  • 2.0 Literature Review
  • 2.1 Introductions
  • 2.2 Elements of internal control
  • 2.3 Objective of internal control
  • 2.4 Fraud and types of fraud
  • 2.5 Causes of fraud
  • 2.6 The effect of fraud and ways to minimize fraud in bank
  • 2.7 How internal control methods can help the problems of fraud

Chapter Three

  • 3.0 Research Design And Methodology
  • 3.1 Introduction
  • 3.2 Research design
  • 3.3 Sources/ methods of data collection
  • 3.4 Population and sample size
  • 3.5 Sample technique
  • 3.6 Validity and reliability of measuring instrument.
  • 3.7 Method of data analysis.

Chapter Four

  • 4.0 Presentation And Analysis Of Data
  • 4.1 Introduction
  • 4.2 Presentation of data
  • 4.3 Analysis of data
  • 4.4 Test of hypothesis
  • 4.5 Interpretation of results

Chapter Five

  • 5.0 Summary, Conclusion And Recommendations
  • 5.1 Introductions
  • 5.2 Summary of findings
  • 5.3 Conclusion
  • 5.4 Recommendation
  • Bibliography
  • Appendix
  • Questionnaire

Chapter One

1.0 Introduction

1.1 Background of the study

It is pertinent in this research that the word fraud be defined. The advance learner’s dictionary defines fraud as criminal deception, act of this kind, person or thing that deceives”, on the other hand, fraud is defined by the auditing guidelines as a particular type of irregularity. According tot eh auditing guidelines this refers to irregularities involving the use of deceits to obtain an illegal or unjust advantage and may involve the following.

  1. Manipulation falsification or alteration of document
  2. Miss appropriation of assets.
  3. Suppressing or omitting transaction records
  4. Recording transactions without substance
  5. Miss appropriation of accounting policies.

Which every way one looks at it, fraud is an international distortion of financial statement for whatever purpose, the miss appropriation of assets, whether or not accompanied by distortion of financial statement.

Case of fraud are becoming a recurrent feature of fraud are becoming a recurrent feature of our financial system as recorded cases by banks and other financial institution continues to occupy a conspicuous position in the annual reports and account of Nigeria deposit insurance corporation (NDIC) . As a result, the issue of fraud has become a serious food for thought for many corporate bodies in recent times. Owing to this, much time is spent in the board meetings in an attempt to find solution to the persistent fraudulent practice among management and non management staff.

The frequency with which fraud occurs in any organization should not be over looked as it determines to great extent the survival and growth of that organization and if not properly checked can lead to corporate failure.
From the ongoing, the need to prevent and control fraud cannot be overemphasized. It has been noted that the prevention of fraud, error and comparable irregularities lies with in the province management supervision and other internal controls.

It could be said that board have not done enough in terms of printing a solid defense mechanism and administrative and internal control procedure as counter measure to ward of the persistent fraud cases in our financial system. The rate with which fraud is occurring in the Nigeria system is a sure indication of serious weakness in the internal control system.

It is in view of the foregoing, that this research study is being carried out. The study will find out among other things the important of an internal control system and the measure applied in such a system to prevent and to control fraud. The study is also embarked upon with a view to promote the setting of internal control system in organization.

1.2 Statement Of Purpose

It is a fact that fraud has become a recognize institution in the national and international financial systems and fraudsters, through their affluence are well respected in the society. The implication of this is that boards are now faced with the arduous task of how to control minimized the incidence of fraud which has now become a cankerworm in the society. Owing to the fact that fraud posses a serious treat to corporate growth and existence, management must make effort to check and completely eradicate fraud as it seems , perhaps enough has not been done imputing up a solid defense, mechanism to check the problem.

In view of the unsatisfactory situation mentioned above, the problem to be dealt with in this research is as follows.

  1. Weakness in the internal control system of union bank o Nigeria plc, Afribank and Eco bank.
  2. Problem encountered in adopting defensive measure to prevent and control the incidence of fraud.
  3. The effect of internal control system of ht above banks.

The study will be based on conceptual clarification of internal control to enhance its implementation by organization and general awareness to corporate bodies. Also the study will analyze the problems, benefits and importance of internal control. Finally, it is worthy to note that the absence of a good internal control system would lead to assets not being safeguarded due to inaccurate records as well as non compliance with management policies.

1.3 Objective Of The Study

  1. To highlight the use and importance of a system of internal control in the sources of financial institution with particular emphasis on union banks Afribank and Eco bank Nigeria plc.
  2. Identifying problem which financial institution encounter in adopting a system of internal control.
  3. To see whether internally audits as a department for ensuring strict adherence to internal controls in organization is still in relevant function.
  4. To see whether there are lapse of weakness in internal control in operation of the above banks.
  5. To find out if there is a relationship between the existence of sound internal control and the prevention of the occurrence of fraud.

1.4 Research Questions

  1. What is fraud?
  2. How can internal control be a management to control and prevent fraud in the banking industry?
  3. Has there been any effect of fraud in the operation of banks and other financial institutions?
  4. What measures could be adopted to minimize and solve the problem of fraudulent activities with the banking sectors and other financial institutions.

1.5 Statement Of Hypothesis

The following hypothesis has been developed to meet the requirement of this research.

1) H0:The existence of sound internal control system in Fidelity banks does not enhance profitability.
H1:The existence of sound internal control system in Fidelity banks enhance profitability

2) H0:The segregation of duties in the bank does not ensure full compliance with internal control.
H1:The segregation of duties in the bank ensures full compliance with internal control.

1.6 Significance Of The Study

The long run trend for cooperation to evolve into organization of gigantic size and scope including a great variety of specialized technical operations and numbering employee has made it possible for management to exercise personal first hand supervision of operations.

Management no longer relies upon report which summarizes the current operations in the organization.

It keeps management informed as to whether the company’s policies are complied with whether government regulations are being observed.

Internal control provides assurance to management dependability on the accounting data used in decision making and these decision made becomes company policy.

1.7 Scope Of The Study

This research is confined to internal control as means to prevent and control fraud in union bank Afribank and Ecobank Nigeria plc. The study will deal with the element of internal control in order to highlight the importance of a good internal control system in banks and other organization. This importance and that of internal audit as a means to prevent fraud will also be highlighted in the research to ensure that the system is well understood for strict adherence by management .

1.8 Limitation Of The Study

In this study, the course of carrying out this research encountered a lot of difficulties and was constrained in many areas among which are:

Data From Banks:

The problem of getting the managers, staff and customers of two banks to answer questions in the proposed questionnaire in many cases, information given by both banks and the ones from internet are not simplified. That is , the are very difficult to understand.

Time Constraint:

In the aspect of theoretical and practical of this work the researcher being a student had to apportion her time so as to carry out concurrently with other academic assignment.

Financial Constraints:

The research was constrained by creating of materials and other expenses , however, in spite of the limitation . effort were made by the researcher to utilize the limited resources at her disposal to ensure that the work is successfully completed.

1.9 Definition Of Terms

1. Fraud:

Is an irregularities involving the use of criminal deception to obtain for instance an unjust or illegal advantage

2. Bank:

It refers to a financial institution were money, money worth and other valuables are kept for safe custody.

3. Bank Services:

Simply refers to all such transactional obligations . such as acceptation deposit, etc which bank renders to customers

4. Automation:

The use of machines to do work that was previously done by people or saved mental and manual labour example, the use of computer in banking services.

5. Customers:

Is an individual or organization who transacts business with a bank or and financial institutions.

6. Strategic Management:

This is an art and science of formulating and evaluating cross functional decisions that enable the organization to achieve its objectives.

7. Nigeria Deposit Insurance Co-Operation (NDIC)

Nigeria deposits insurance cooperation is responsible for providing deposit insurance and other related services for banks.

8. Financial Assets:

These are claims against real (tangible asset) and investment which are commitment of the resources in securities (intangible assets) traded in organized money and capital market.

9. Internal Control:

these companies the plan of organization and all the co-ordinate method and measures adopted within to safeguard its assets.

10. Accounting Control:

these are the method and procedure use in an organization in safe guarding their asset and reliability of financial records.

11. Administrative Control:

these concerns mainly with operational efficiency and adherence to management policies.

12. Dual Control:

it is a security devices which underlines all internal banks safe guards.

13. Miss ¬-Appropriate:

it is an illegal adoption of money or property belonging to some one else.

14. Data:

a raw material input in the production of information.

15. Management:

it is an act of controlling and running of the activities of a business or an organization.

16. Chi Square:

a test of statistical significant which test one of how well your model of expected distribution for the observed distribution.

17 Hypothesis:

a guess or assumption about a certain problem, or set of circumstance reasonable supposition that may be night or wrong.

18. Validity:

the state of being logical true.

19. Auditing:

it is an official examination of business and financial records to see that they are true and corrects.

20. Employees:

an individual who is being paid for work done.

I bet you, the complete material is fully loaded. This is just an excerpt. The Material is in MS-Word Format which you can easily edit and is comprehensive for a complete research work for this topic

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How to nail it on the head during your project defence

You are through with writing that project. Now what?

You have found yourself at that point where you have to defend what you have written. Of course you have to stand in front of your supervisor and other literary personalities to prove that you know what you wrote in your project paper. Unfortunately, the more you think about it, the more it looks like you are about to face a legion. It is not a war. But the emotion of dread welling up inside of you makes it look like one. So now you are asking yourself questions.

  • How am I going to start?
  • I hope I will do well enough to get an A.

You really want to nail it, but you need to come to terms with exactly how to get everything in perfect control. Especially your emotions of fear that seem to make a wreck of you every time you think about public speaking.
So here is the deal. I want to help you avoid that feeling that would ruin your precious moment if you dare to let it. And we are going to do it together.

I am going to highlight some very important tips to help you get in control for you to be comfortable enough to move from that feeling of DREAD to CONFIDENT; and making an awesome Impression for that great rating your supervisors should be giving to you so freely.

Consider these tips as you prepare for your defence. We will be taking them one after the other so here we go.

Watch Your Body Language And Keep It Confident:

Can you tell that a person is falling apart if they look confident? … If I can second guess you rightly, am sure you answered no to that question. Remind yourself that you need to come out that way. Now this might seem like a huge big deal when you are dealing with the foreboding. Maintaining a poise of confidence is very important. So find your most comfortable position, sitting or standing and draw up your body. You must exude confidence. It is something you need to do for yourself. People can only see what you allow your body language to show. So you must endeavour to put that out. Remember the story of David and Goliath? … At the end of your defence day, you want to be David.

Dress In Your Most Comfortable And Impressive:

Am sure this one is a no brainer. However I must highlight that you choose comfortable pieces. You don’t want to look so good and yet look like you were forced to wear something that does not belong to you. It’s great to ensure that as impressive as your clothes are on you, that they are also very comfortable.

Speak With Authority:

Going hand to hand with that aura of confidence is your most powerful asset:your words. If you look that confident, your words must not come out like whimpers. To be able to pull this off, you definitely need to speak as deliberately as possible in expressing yourself. Let them also hear what they see.

Use, Your Gestures:

I have often found this to come to my rescue in dealing with shyness and conveying my confidence. Usually it gives you an edge to also drive home your point. You must, however, ensure that you do not over use it. It doesn’t mean that your hands should be flying all over the place. That would be absolutely unnecessary. If you do this well, after a while you will realize that you are not as self-conscious as you used to be at the very start. For most situations, it would have completely disappeared altogether; leaving a really confident you talking.

Have A Good Opening And Closing Line:

Make sure you have perfected a good opening line. You should also be armed with a good closing line too. Try and rehearse it to a friend. If for the first time you presented it, your friend does not say “wow, that’s beautiful” or something like that; just know you need to keep refining it until you get the perfect line. Both opening and closing lines will go a long way in how impressed your panel gets to rate you high.

Make Sure You Know Your Work:

Certainly you should understand how important it is to know your own work from start to finish. Not having in-depth knowledge of your own work is tantamount to a suicide mission. Why should you kill yourself?
When all is said and done, this is what you came to defend in the first place. You should know your work from A to Z.

Prepare For The Questions:

Now this part is truly essential. You must be sure you do not floor all the good work you did on your presentation by not answering correctly. You must pay attention to the questions you are asked to be sure you will give the right answer. Many people get it wrong at this stage and spoil their good presentation. When you do not understand any question do endeavour to ask the person to expatiate what they mean before you answer.

These tips are by no means exhaustive, but applying these tips will give you some necessary advantage you need for a great outcome. Of course that outcome would mean that you eventually earn all your points on this project.

The structure of a good project work

Undergraduate projects in Nigeria is a prerequisite for graduation amongst Nigerian tertiary students who will which to obtain bachelors degree in their respective courses of study such as accounting, banking and finance, business administration and a host of others. Writing an undergraduate project in Nigeria for final year students entails a lot both financially and otherwise. Being able to develop any final year project depends on getting a researchable topic whether it is Accounting Undergraduate project topics, Banking and Finance research topics or banking and finance project topics and materials and it all requires diligent hard work of students who are willing to develop best undergraduate projects in Nigeria and graduate in flying colors.

A typical Undergraduate project in Nigerian tertiary institutions can be said to be divided into five or six chapters depending on the format of the school and course of study which are

1. Introduction

The introduction of an undergraduate project states the main research problem and research argument. What precisely the study is all about and why it is important. It looks at the originality of the research work and how it will fill the gap in other studies. Justification for a research undergraduate topic should not be lengthy before it has been explicitly stated.

Below are the contents in chapter one of an undergraduate research project which includes;

  • Background of the study,
  • Statement of the problem,
  • Objectives or aims of the study,
  • The research questions,
  • Research hypothesis,
  • Significance of the study,
  • Scope of the study,
  • Limitations of the study and
  • Operational definition of terms.

2. Literature review

Literature review of any undergraduate research work, be it business administration project topics or Economics project topics just to mention a few is very critical to securing a high grade in one’s project work. The literature review of a research process uncovers what other writers have written about the student’s topic. A student’s undergraduate research work should include a discussion or review of what is known about the subject and how that knowledge was acquired. The review could conclude with a brief summary of the literature and its implications. The contents of the literature review are the theoretical review, conceptual framework, empirical review and summary of literature review.

3. Research Methodology

This section includes a description of the research methods used in the undergraduate research work such as the sample size, data collection methods, measurement instruments, research data analysis procedures and the population from which the sample was selected.  This section also describes the method used in selecting the sample or samples, validation and reliability of the instruments used in the research work. There are different research statistical techniques used in undergraduate research work such as SPSS, e-views etc.

4. Results & Discussion

This section presents and discusses the data analysis results used in an undergraduate research work, the results of each analysis is being summarized, tabulated, and then discussed for each research question.  Then for each research hypothesis, the statistical test of significance selected and applied to the data is briefly described, followed by a statement indicating whether the hypothesis was supported or not supported.  In presenting the result analyses/summary in an undergraduate project tables and figures and or graph are used to add clarity to the presentation.

5. Summary, Conclusions And Recommendations

This section summarizes the findings of the study in an easy to understand manner.  It also explains the practical implications of those findings, and points to recommended directions for future research in that area.


This is where every source cited in the undergraduate research work is being included. Every undergraduate research work must be properly referenced for its authenticity.

Choosing A Good Project / Research Topic

Students in Nigerian universities these days wish to choose a very simple project topic/material. There is no issue choosing a simple project topic; the only problem is your ability to choose a good project or research topic that your supervisor will easily approve for you.

Most project supervisors really want to see how good his or her project student understands his or her surrounding through the kind of topic he or she chooses for their project work.

There are some project topic that are not reject-able; for instance in Nigeria of today; what do you think is the major issue on ground now?

If a project student can choose or craft a topic on the effect of dollar increment on the economy of Nigeria. Such project topic will be very interesting to write on.

Now what are the qualities of a good project topic?

  1. The materials for the project topic must be easily assessable.
  2. The project topic itself must be meaningful.
  3. The variables must be able to give a clear aim of the project topic.

What do I mean by variable?

Well I am deriving my point from the area of project writing; the variables here are those main words in the project topic.

Like the above project topic; the effect of dollar increment on the economy of Nigeria. You can see the main variables that really define this project topic are:dollar, increment and economy.

Before you present your topic to your project supervisor, first of all understand your project topic, and then secondly try to do some research for your topic to see if at least you can get up to 60% of what you need to write the complete project.

I said that above because you might have a very nice topic that the materials are not available online and there are no books as regard the topic; in this case the project topic becomes difficult for you even though the topic is catchy.

What do I mean by your topic being assessable?

Well what I mean is very simple and easy to understand. Simply pick your project topic, type it on google and see if you will have at least a good background for the topic you are writing on.

If you can have a good background for your project topic and you can understand the problem associated with the project topic, then I believe the aim of the project is not far-fetched.



Samuel Obiora Blessed is the CEO and founder of Samphina Academy ( a.k.a Nigeria Students Media, the youngest engineering graduate of Federal Polytechnic Nekede in 2017 and the engine brain behind this great platform. He is the man behind the scene, filled with many potentials, a musician as well as a pro developer with the interest of Nigerian students at heart.

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