Effects Of Forensic Accounting Practices On Fraud Prevention In Commercial Banks In Kenya
Abstract
The general objective was to assess the impact of forensic accounting practices on fraud
prevention in commercial banks in Kenya. Explicit objectives included; to determine effect
of proactive fraud audits on fraud prevention in commercial banks, finding out the
influence of management override controls of fraud prevention in commercial banks,
establishing effective risk management on curbing deception in banks and to assess
effective of internal control on curbing fraud in commercial banks. The research used of a
descriptive design approach. The research utilized primary established with using
questionnaires. To ensure comprehensiveness and consistency of the research the data was
edited, coded then put into the data processor to be processed using Statistical Package for
Social Sciences (SPSS v.17.0). Answers were edited to recognize and eradicate faults done
by interviewers. Descriptive statistics which involve the use of frequencies, percentage and
means were used to analyses information extracted from the respondents. Regression
outcomes exhibited an affirmative and substantial impact amongst proactive audit function,
robust internal control, management override controls and risk management and fraud
prevention. The study concluded that proactive fraud audit helps in checking routine
transaction and also in investigating errors. In addition, conducting fraud risk assessment
regularly helps in preventing fraud. Banks should ensure they have experienced and skilled
auditors. This is because role of an auditor essential in fraud prevention and detection.
Banks should also regularly conduct fraud risk assessment. Internal controls therefore need
to be reviewed and rectified frequently as infrequent review may increase the fraud risk, as
the fraudster can identify and exploit the weaknesses in internal control. To ensure effective
risk management in the organization, the management should be an integral part of
organization process, transparent and continual improvement of internal control system.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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