ISSN: 2222-6990
Open access
With the resent reforms in corporate governance requirement, risk assessment has become a prominent feature in organizational control and management. This study looks at the risk assessment practices of some selected firms in Nigeria to determine the presence and therefore the impact of this practice. The population comprised of firms listed on the stock exchange that are audited by the big four audit firms (KPMG, E&Y, PWC & AWD) in Nigeria. Using judgment sampling, two senior management and four internal control staff were selected. Data was collected by means of a questionnaire with response options graduated into five Likert scales. The questionnaire captured responses from questions on risk assessment practices and fraud occurrence in the organizations. Logistic regression was used to test the hypothesis and the result showed a positive and significant relationship between risk assessment and fraud in Nigerian organizations. The study provides insight into the organizational practice with reference to risk assessment. From this study, Nigerian Organizations have not imbibed the prescriptions of the resent corporate governance codes. The study, therefore, recommends that sanctions should be put in place to enforce compliance to these corporate governance codes. and attention should be paid to the appointment of board members to ensure that a vibrant audit committee is constituted.
Brenriam, N. M., & Solomon, J. (2008). Corporate governance accountability and mechanisms of accountability: an overview accounting. Auditing and Accountability Journal 21 (7), 885-906
Committee of Sponsoring Organizations of the Treadway Commission. (2004). Enterprise Risk Management – Integrated Framework, New York: COSO.
Demidenko, E., & McNutt, P. (2010). The ethics of enterprises risk management as a key component of corporate governance. International Journal of social economic,37(10), 802-815
Economic and Financial Crimes Commission. (2014).Internal report.
Goodwin-Stewart, J., & Kent, P. (2006). The Use of Internal Audit by Australian Companies, Managerial Auditing Journal, 21, 1: 81-101.
Law, P. (2011) Corporate governance and no fraud occurrence in organizations. Managerial Auditing Journal 26(6), 501-518.
Nagy, A. L., & Cenker, W. J. (2002).An assessment of the newly defined internal audit fraud. Managerial Auditing Journal. 17 (3)130 -132
Nigerian Stock exchange fact book. (2014/15).
Nigerian Bureau of statistics and Economic and financial crime commission. (2007). Survey on crime and corruption and awareness, Nigeria: EFCC
Page, M., & Spira, L.F., (2004). The Turnbull report, internal control and risk management: the developing role of internal audit. Institute of Chartered Accountants of Scotland
Pathak, J. (2005). Risk management, Internal control and Organizational Vulnerabilities. Managerial Auditing Journal 20 (6), 569-577.
Ping, I. P., & Muthuveloo, R. (2015).The Impact of Enterprise Risk Management on Firm Performance: Evidence from Malaysia, Asian social science journal 11(22).
Shapirro, S. P. (2005). Agency theory. Retrieved from 197:253.4.164.
Smallman C. (1996). Risk and Organizational Behaviour; A research model.Disaster prevention and management 5(2), 12-26.
Soh, D. S. B., & Martinous, B. N. (2011). The internal audit function perceptions of internal audit roles, effectiveness and evaluation. Managerial auditing journal 26(7), 605-622
Solomon, D. (2008). Perspectives on the current environment and risk management. The Conference Board, Enterprise Risk Management Conference
Spira, L. F., & Page, M. (2002). Risk Management the Reinvention of Internal Control the changing role of Internal Audit Accounting. Auditing and Accountability Journal 16 (4), 640-661
Stewart, G. J., & Kent, P. (2006). The use of internal audit by Australian companies. Managerial Auditing Journal 21(1), 81-101
Turnbull, N. (1999).Internal control, guidance for directors on the combined code. London Institute of chartered accountants in England and Wales.Accounting HorizonsSupplement 37-48
Zaman, M. (2001). Turnbull – Generating Undue Expectations of the Corporate GovernanceRole of Audit Committees, Managerial Auditing Journal, 16, 1: 5-9.
Zwaan L., Steward, J., & Subramanian, N. (2011). Internal Audit involvement in enterprise risk Management. Managerial Auditing Journal 26 (7), 586-604.
In-Text Citation: (Nnam & Eneh, 2018)
To Cite this Article: Nnam, I., & Eneh, N. (2018). Risk Assessment: A Fight against Fraud in Nigerian Organizations. International Journal of Academic Research in Business and Social Sciences, 8(7), 133–144.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode