MANAGEMENT OF FRAUD AND WASTAGE IN BUSINESS ORGANIZATION: IMPLICATION FOR INTERNAL AUDITORS

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MANAGEMENT OF FRAUD AND WASTAGE IN BUSINESS ORGANIZATION: IMPLICATION FOR INTERNAL AUDITORS

ABSTRACT

This study is on management of fraud and wastages in business organizations: implications for internal auditor. Many objectives were set among which are: to identify the nature, types and major causes of fraud and wastages in business organizations. To find out the factors that motivates workers to indulge in fraud and wastages in business organizations. To identify the effects of fraud and wastages in business organizations. To proffer solution on how to minimize fraud and wastage in business organizations using internal control measures and other accounting measures set aside for the detection of fraud and wastages. Hypotheses were also tested to determine if or not the hypotheses might be instrumental in fraud and wastages occurrences in business organizations. In arriving at the data used, both primary and secondary data were used. The primary data includes questionnaires distributed to sampled staffs and management of May and Baker Plc and Drugfield Specialty Product Plc. The secondary data includes materials form published textbooks, internet, articles and newspapers. These were tested using Chi square (x2) distribution. Data were analyzed and some of the findings include inadequate control measures took the most significant causes of fraud and wastages followed by deliberate intent and management ignorance. Finally, I recommended that proper internal control measure should be put in place, and other measures that will help to facilitate it like: inspection, review and observation. Trustworthiness, competence and integrity of employees and their understanding of prescribed policies and procedures.

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