Research Paper | Management | Kenya | Volume 3 Issue 10, October 2014
Determinants of Fraud Control Measures in Commercial Banks: A Survey of Selected Commercial Banks in Nakuru Town, Kenya
Sang, Mercy Jepkorir
Abstract: The purpose of the study was to examine the determinants of fraud measures in selected commercial banks in Nakuru Town. The objectives of the study were to assess the measures put in place at these banks to mitigate fraud and examine the effectiveness of the internal control measures on fraud occurrence. The study was guided by the fraud triangle theory, the fraud scale theory and the agency theory. The study was based on descriptive research design. Sampling was done through stratified sampling design. Data was collected using questionnaires and analysed by using both descriptive and inferential statistics. The descriptive statistics used included the standard deviation, means and frequencies. The inferential statistics included chi square and linear regression. The study concluded that among the measures put in place to detect and mitigate fraud in commercial banks in Nakuru Town included daily checks (24.4 %), weekly tests (24.4 %), monthly checks (29.5 %), and periodic tests (33.3 %), dual control checks (19.2 %), physical restriction of access to sensitive areas (46.2 %) and limitation to access to information systems (33.3 %). The study has also concluded that the effectiveness of the internal control measures was undermined by non adherence to dual control aspects (21.8 %) and lack of sufficient time to undertake the various periodic tests diligently (7.7 %). The study recommended establishment of comprehensive fraud mitigating measures against external frauds at the cashiers departments, more enforcement of compliance of fraud mitigation methods, an increase in staff numbers in key operational areas and lifestyle audits among the bankers to detect fraud occurrences among bankers.
Keywords: Fraud, Funds Diversion, Internal Controls, Tax Evasion
Edition: Volume 3 Issue 10, October 2014,
Pages: 2178 - 2183
How to Cite this Article?
Sang, Mercy Jepkorir, "Determinants of Fraud Control Measures in Commercial Banks: A Survey of Selected Commercial Banks in Nakuru Town, Kenya", International Journal of Science and Research (IJSR), https://www.ijsr.net/get_abstract.php?paper_id=OCT14743, Volume 3 Issue 10, October 2014, 2178 - 2183
How to Share this Article?
Similar Articles with Keyword 'Fraud'
The Role of the Accounting System in the Internal Control
Dr. Nimer Alslihat, Dr. Nahed Habis Alrawashdeh
Role of Direct Selling Guidelines 2016 in Relation with MLM Industry in India
Vaishali Dwivedi, Dr. Preeti Singh
Similar Articles with Keyword 'Internal Controls'
Role of Fraud Prevention in Enhancing Effective Financial Reporting in County Governments in Kenya: Case of Nakuru County, Kenya
Shadrack Maweu Kyalo, Dr. Aquilars M Kalio, Solomon Ngahu
The Effect of Internal Audit Department Function on the Performance of the Internal Control System of a Public Hospital in Uganda
Kaziba Abdul Mpaata, Bumali Lubogoyi, John Charles Okiria
Similar Articles with Keyword 'Tax Evasion'
GST in Indian Economy: It's Benefits and Impact
Dr. Chandu Ravi Kumar
Factors Influencing Tax Compliance among Small and Medium Enterprises in Sri Lanka
K.G Asela Gamini Bandara