Asset Protection and Financial Statement Fraud: The Audit and Management Function In Nigeria Business Organisation
The study examines the effect of the internal control system and audit on the financial report as well as on the assets of the organisation. The issue of probity is persistence due to fraud and irregularities in the financial dealing of the firm and on the financial report of the firm, the role of the internal audit com-management of the firm in this regard remain on clear and non specific. Structured questionnaire, a survey method was adopted for the study, the simple random sampling method was adopted for variable selection, while the chi-square was used to analysis data collected. The result shows that the internal auditor and management of the firm were responsible for effective working of the internal control system of the organisation and also for fraud prevention. It was also revealed, that an effective internal control system will reduce the menace of fraud and irregularities. The asset performance and protection in the organisation is also shown not to be the function of the internal audit alone, the management is also responsible for the safety of the firm’s assets. It was recommended that a system that will allow for both upward and down ward flow of information should be established. Ethical standard and norm should be established that will reduce the incidence of fraud and irregularities within the firm. It was also recommended that enhanced and efficient corporate governance practice should be put in place to reduce the incidence of exogenous error, fraud and irregularities.