Impact of Employee Fraud on Business Entities in Nigeria
- November 17, 2019
- Posted by: RSIS
- Categories: Accounting, IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue XI, November 2019 | ISSN 2454–6186
Impact of Employee Fraud on Business Entities in Nigeria
Rasaq Alabi Olanrewaju1, Samuel Johnson-Rokosu2
1Department of Accountancy, Lagos State Polytechnic, Ikorodu, Nigeria
2Johnson Rokosu & Co (Chartered Accountants)
Abstract:- The aim of every business is profitability of going con-cern. However, no matter the profit and injection of fresh capital to a business, the going concern will be threatened, if fraud is allowed to creep into it. The study intends to determine how em-ployee fraud affects the operation and success of business enter-prise in Nigeria.Combinations of qualitative research design and survey research techniques were used in this study. Question-naires were administered to collect data relating to fraudulent practices by employees in private and public sector.
Keywords:Business entity, cash larceny, over invoicing, teeming and lading , skimming
I. INTRODUCTION
Frauds, both internal and external oriented have caused significant and irreparable damage to lots of business entities over the years. While it has caused liquidation of some, it has deterred the growth of many. The aim of every business is profitability of going concern. The more a business makes profit, the more the proprietors wish to stay in the business and keep expanding with either retained earnings or/and injection of fresh capital. However, no matter the profit and injection of fresh capital to a business, the going concern will be threatened if fraud is allowed to creep into it.
Fraud is like a cancer that if not well treated will exterminate a business life. Employee fraud is difficult to detect. In a guide to reduce employee fraud, CPA Austria emphasises that ‘misplaced trust, inadequate hiring and supervision policies and a failure to implement strong internal control create an environment that is ripe for an employee to commit fraud (CPA, 2009). Gee, (2015) asserted that ‘companies may have policies and procedures in place, yet an employee that commits fraud tries to circumvent those policies and procedures. A trusted employee who has legitimate access to various systems and in the course of his duties, would learn how the systems work’.
