ABSTRACT
Over
the years the Nigerian banks have been ravaged by the phenomenon called bank
distress. The role of bank Inspectors and External auditors in this regard
cannot be over emphasized. when it became apparent that the distress was
leading to total; doom, the federal Government stepped in this intervention led
to liquidation of banks of curb and menace of distress on our banks.
Banks
were liquidated due to poor capital base, insider abuse are mismanagement. More
also other problems ravaging banks are forgeries, frauds and financial
indiscipline etc. this posed grant challenges to management. Here the work of
the auditors set in; The primary duty of the auditor is to report on truth and
fairness of the financial statement.
The
project took a look at the auditor’s and inspectors reviving the true banking
culture. Auditors are given the constitutional powers to control frauds and
forgeries. But the reverse is the case, in the sense that we have
management-aided fraud. One management is supposed to check fraud, financial indiscipline,
and corruption in the bank’s management, vis-Ã -vis, the auditor’s shares the
responsibilities of promoting, maintaining financial discipline, deterring
frauds and forgeries, thereby curbing the menace in the banking industry.
The
regulatory bodies, the NDIC and CBN saddled with the task of monitoring
financial institutions, over worked with the job of sanitizing the banking
sector and instilling public confidence in it.
Adhering
strictly to the laid down policies, procedures with compliance through the
monitoring role of bank inspectors and external auditors aided by management,
will go along way to remove bottlenecks in banks in general.
It is
understandable that the banks inspectors and external auditors put more efforts
in other to revive banks. The services of bank auditors are nor relegated to
the background.
CHAPTER ONE
1.1 INTRODUCTION
Nigerian banking industry is today arguably one of the most sophisticated
in Africa. It has embraced Information Technology including computerization,
Internet and other forms of electronic banking. It has grown in number and
branch network from about 10 banks in 1960 to 120 banks in 1990 courtesy of
Babangida deregulation in 1986 and now to above 91. CBN sanitization polices
played a vital role since 1998 till date.
Since then the Industry has succeeded in its major role of financial
intermediation (money from the surplus sector to the needy sector) stimulation
of real sector growth and overall enhancement of trade. Obviously the industry
has failed in majority e.g. those roles possibly scored high in just a few
banks. For one Nigeria has not experienced real in industrialization.
Most of the surviving companies in Nigeria are Multinational that
survives on imported capital. That no truly industrial firm has grown to a
multinational status is a pointer to the old ones that in manufacturing, mining
and other real production activities have suffered form perennial inadequate
funding due to numerous banking malpractices thereby resulting to distrust to
the industry with the multiplier effect led to distress and possibly
liquidation. This does not mean that these are the only cause of the stunted
growth in the
Besides frauds and forgeries
crimes are rising in the banking system especially since the advent of
electronic banking producing the use of electronic card for settlement of
transactions. In fact it is feared that the next real threat to the industry
will arise from Internet based crimes. In the early 1950s some 22 banks mainly
indigenous ones failed due to under capitalization, inexperienced and
managerial incompetence. From early 1990 to 1997 about 312 banks were
liquidated due to insider abuse, lack of skilled manpower and poor capital base.
This time around the fear is that cyber crime will wreck many banks in seconds.
This fear is real and here lies the main challenges to Nigerian banks as they
embrace electronic banking. It will not be easy to protect ones system from
hackers and lackers and other intruders. The headache will not necessarily be
available of sketched experienced manpower nor will it be inadequate capital;
but will mainly be a factor of an effective inefficient and incompetent nature
of Auditors particularly in the performance of statutory roles,
responsibilities and functions etc......
================================================================
Item Type: Postgraduate Material | Attribute: 121 pages | Chapters: 1-5
Format: MS Word | Price: N3,000 | Delivery: Within 30Mins.
================================================================
No comments:
Post a Comment