The Role of Internal Control on Prevention of Fraud in the Banking Industry: A Conceptual Review

Abstract

This study focused on the role of internal control on the prevention of fraud in the banking industry. It sought to assess the significance of internal control and to suggest measures that could reduce fraud in United Bank for Africa Plc. Conceptual review was conducted through systematic literature search using textbooks, peer reviewed journals, and official publications. Also, it was revealed that management control helps in the preventing of fraud in the banking industry. Furthermore, arithmetical control was found to be a useful measure in the prevention of fraud in the banking industry. Based on the findings, it was recommended that management should ensure that personnel activities within and around the banking environment should be properly scrutinized in order to avoid the emergence of fraud. Also, it was recommended that there should be routine review of transitions by management in order to ensure that they are authorized and processed according to lay down procedures.