Fraudulent Practices in Nigeria: Auditors Responsibility

Abstract

With the upsurge in fraudulent activities in financial accounting and corrupt practices in the global economy especially Nigeria, the need for auditors to be effective in Fraud Prevention, Detection and Investigation has become an emerging topic of great importance for the academia and real sector. However, determining how effective and the extent to which auditors will meet the desired goal is a subject of debate in most jurisdictions. The paper focused on an analysis of the role of auditors in fraud prevention, detection and investigation in selected firms in Nigeria. Using questionnaire and oral interview data was collected and was analyzed through the use of chi-square. The findings of this work are that the firms produced and published financial statement as well as engaging the services of auditors and that detection of fraud and errors is inevitable. Also, the case of fraud in these organizations is due to poor management, lack of internal auditors, poor internal control system and corruption. Based on these findings, it is recommended that selected firms should ensure continuous policies and strategies aimed at effective and efficient management. That management should continually engage the services of qualified and experienced external auditors which will not only put in place an effective internal control system but which will equally enhance it. Finally, education, proper enlightenment and above all self-discipline is recommended to step down the level of corruption not only in the selected firms but also in Nigeria as a whole.