Effect of Internal Control System and Financial Accountability in Deposit Money Banks in Nigeria

The motivation for this research emanated from the need to curb unethical practices happening in the banking industry. The aim of the study is to determine the role of internal control system on financial accountability in Deposit Money Banks in Nigeria. Primary data was used for the study with the aid of questionnaire generated in a 4 Likert scale. Simple Linear Regression was used to test each of the hypotheses. The findings reveal that separation of duties, specified structure of the organization, proof measures in documents and records, physical control over assets and records proper procedures of authorization, pre and post review and internal audit all have positive and significant influence on financial accountability in Deposit Money Banks (DMB)s. The implication of the findings is that if all these measures are properly put in place financial accountability will be ensured. It is advised that the following measures if put in place will strengthen the internal control system in the Nigerian banking system. Management should provide adequate training for staff of banks, teaching them the need to abide by the policies and procedures of the bank and also ethical standards. Management should ensure the effective monitoring of the controls by internal auditors to avoid negligence on the part of the staffs. Also, management can invest in advanced technology tools that will aid in proper monitoring, and prevention of data loss.