| dc.contributor.author | Nyakarimi, Samuel Ngigi | |
| dc.contributor.author | Karwirwa, Mary | |
| dc.date.accessioned | 2019-10-28T09:59:20Z | |
| dc.date.accessioned | 2020-02-05T14:30:19Z | |
| dc.date.available | 2019-10-28T09:59:20Z | |
| dc.date.available | 2020-02-05T14:30:19Z | |
| dc.date.issued | 2015 | |
| dc.identifier.citation | Nyakarimi, S. N., Karwirwa, M., & Kenya, M. (2015). Internal Control System as Means of Fraud Control in Deposit Taking Financial Institutions in Imenti North Sub-County. Research Journal of Finance and Accounting, 6(16), 118-128. | en_US |
| dc.identifier.uri | https://pdfs.semanticscholar.org/ae2c/e3111a6c3cd2e54a4ffb5110d6955eb90ab0.pdf | |
| dc.identifier.uri | http://repository.must.ac.ke/handle/123456789/628 | |
| dc.description.abstract | The purpose of the study was to establish the relationship between internal control systems (ICS) and fraud
control in deposit taking financial institutions. ICS was analyzed based on its component which include;
Control Environment, Risk Assessment, Control Activities, Information and Communication and Monitoring.
The Researcher set out to establish how ICS could be used to control fraud in financial institutions. The
researcher set study objectives and hypotheses that assisted in establishing the relationship sort.
The research was conducted using both quantitative and qualitative approaches using Stratified
random sampling, ANOVA and Descriptive Research Designs. Data was collected using Questionnaires from
the operations managers and supervisors, from various deposit taking financial institutions in Imenti North Subcounty. A sample of 92 respondents from a population of 120 was used for this study. Data was analyzed using
the Statistical Package for Social Scientists (SPSS) where conclusions were drawn from tables and figures
derived from the Package.
The study found that the financial institutions analyzed recruit through vetting on competences and
integrity, the organization structure reflects chain of command, there are proper follow-up of delegated
responsibilities and the employees are promoted and compensated fairly. On risk assessment the study revealed that
the institutions have proper mechanisms of mitigating risks, financial documents are properly kept, and there are
processes of identifying and estimating risks. Though there was agreement that there are no cases of missing
documents to authenticate transaction the analysis reflected a low mean than in other parameters. In analyzing control
activities it was found that transactions are undertaken by authorized personnel, reconciliations are done regularly,
proper accounting principles are applied and there is proper segregation of duties. Further the study showed that there
is job rotation and verifications are done to reduce chances of forgery. The study revealed that the institutions have
developed means of passing information, the employees are informed of their roles, besides engaging external
parties to verify financial statements they also act upon the findings quickly. In monitoring organizations have
evaluation mechanisms, they also have plans on activities and ensures that the laid down rules are followed. Research
study found that there are continuous checks to ensure controls are working well. The study established a
significant relationship between ICS and fraud control.
The researcher recommends that the management of these institutions should establish proper mechanisms
of promoting qualified and deserving employees, also the institutions should ensure fair remunerations based on
qualification, responsibilities and output of employees. The study recommends that the financial institutions establish
and manages knowledge or information management system within the institution, so as to enable all parties within
the institution to freely access and utilize necessary official information that will enable the employees to embrace
and appreciate their roles in enhancing vigilance against fraudsters. | en_US |
| dc.language.iso | en | en_US |
| dc.publisher | Research Journal of Finance and Accounting | en_US |
| dc.title | Internal Control System as Means of Fraud Control in Deposit Taking Financial Institutions in Imenti North Sub-County | en_US |
| dc.type | Article | en_US |
