Title:
INTERNAL CONTROL SYSTEM AND FRAUD RISK MANAGEMENT IN BANKING INDUSTRY

Authors:
Janven A. Granfon

Abstract:
This study described the internal control system and fraud risk management of rural banks in Zamboanga del Norte. The descriptive method was used in this study with 157 respondents. Frequency count, percentage, and Pearson r Product Moment Correlation of Coefficient were used as statistical tools. The majority of the respondents were females and married. Banks had clear rules when it comes to the integrity and professional ethics of its employees and the board of directors demonstrate independence of management. Banks protect their assets critical to the business's survival. Banks are encouraged to improve their financial reporting competencies by allowing their employees to attend seminars and training purposely to be updated with the latest trends of internal control and financial reporting. Further, they may also improve some areas in their control activities by having an advanced protection method and may conduct periodic evaluation of their internal control system to ensure proper control is in place.

Keywords:
Rural Banks; internal control system; fraud risk management