Moderating Effect of Government Regulations on Internal Control System and Fraud Prevention. A Case Banking Sector in Kenya

Samuel Ngigi Nyakarimi,Peter Wang’ombe Kariuki,Samuel Nduati Kariuki

doi:10.32861/jssr.512.1900.1907

Abstract

The main purpose of the study was to establish the moderating effect of government regulations on the relationship between internal control system and fraud prevention in baking sector. Structured questionnaire was used as tool for data collection. The study was based on all banks registered and operating in Kenya and the questionnaires were meant for branch managers, operations mangers and cash managers in head offices of all banks. One hundred and seventeen questionnaires were distributed and officers from 33 banks out 39 banks returned fully filled questionnaires. The questionnaires were analyzed using Structural equation Model (SEM). The findings indicated that the government regulations have significant moderating effect of control environment and risk assessment. However, there was insignificant moderating effect on control activities, communication and monitoring of activities. The study suggested that further studies and analysis should be undertaken to establish those legislations and regulations that should be enhanced, abolished and also establish need of new laws to enhance the functions of internal control system.

Highlights

A common characteristic of most societies is the existence of dominant and co-culture
The null hypothesis of no significant relationship between the two variables is not accepted. This implies that there is a significant relationship between the two variables at a 5% significance level
We focus on Group Deprivation and cultural identity-based social exclusion

Summary

Introduction

A common characteristic of most societies is the existence of dominant and co-culture. The dominant culture in most cases usually belongs to the majority group while the co-culture to the minority. Minority ethnic group exhibit certain distinguishing characteristics which differ from the dominant group. These characteristics could be in terms of colour, race, religion, cultural practices and beliefs systems. The 13 clans differ from the Omodo clan on the basis of ancestral and migratory historical factors. It is on the basis of these factors that the cultural identity of the two groups was established. Within the context of this research, social exclusion on the basis of cultural identity, the Omodo group suffers residential segregation and exclusion from the dominant cultural practices

Methods

Discussion

Conclusion