Symbiotic Relationship of Internal and External Auditing in Enhancing Fraud Management: Insights from Nigerian Deposit Money Banks in Bayelsa State

Abstract

Fraud represents a formidable challenge to financial institutions worldwide, imposing not only substantial economic costs but also jeopardizing the trust and integrity upon which these institutions are built. This study, therefore, aimed to investigate the impact of auditing on fraud management in Nigerian deposit money banks in Bayelsa. This study employed a survey research design and data were sourced through the distribution of wellstructured questionnaires administered to the targeted respondents. The population covered the employees of all the Deposit Money Banks in Bayelsa State. The study purposively sampled 50 employees across the selected banks. Data were analysed using descriptive and inferential statistics.The findings showed that internal and external auditing exhibited a statistically significant and positive effect on fraud management among the selected deposit money banks in Nigeria. This study concluded that if the management of banks in Nigeria is in adherence and compliance with all the relevant statutes and regulations, it will drastically reduce fraud occurrence in Nigerian banking Sectors. This study recommends that Nigerian Deposit Money Banks should continue to strengthen their internal auditing practices. This can be achieved by investing in training and development for internal auditors to keep them up-to-date with evolving fraud risks and control techniques.