ABSTRACT
Over the years the Nigerian banks have been ravaged by the
phenomenon called bank distress. The role of bank Inspectors and External
auditors in this regard cannot be over emphasized. when it became apparent
that the distress was leading to total; doom, the federal Government stepped in
this intervention led to liquidation of banks of curb and menace of distress on
our banks.
Banks were liquidated due to poor capital base, insider abuse are
mismanagement. More also other problems ravaging banks are forgeries,
frauds and financial indiscipline etc. this posed grant challenges to
management. Here the work of the auditors set in; The primary duty of the
auditor is to report on truth and fairness of the financial statement.
The project took a look at the auditor’s and inspectors reviving the true
banking culture. Auditors are given the constitutional powers to control frauds
and forgeries. But the reverse is the case, in the sense that we have
management-aided fraud. One management is supposed to check fraud,
financial indiscipline, and corruption in the bank’s management, vis-Ã -vis, the
auditor’s shares the responsibilities of promoting, maintaining financial
discipline, deterring frauds and forgeries, thereby curbing the menace in the
banking industry.
