CHAPTER FOUR

DATA ANALYSIS AND PRESENTATION

4.1 Introduction

This chapter focuses on the presentation of collected data by employing tabulations

and simple percentage methods. Further, the hypotheses were tested with statistical

package for social sciences (SPSS) version 21 using Pearson Correlation analysis

in other to examine the relationship between the independent variables and the

dependent variables. Data were obtained with the help of the questionnaire

designed for the study. The result of the analysis carried out would be used to draw

the necessary inferences of the study.

This chapter will also provide the interpretation of the data which will be discussed

under the following sub- headings:

a. Reponses to questionnaire distributed

b. Data Analysis

c. Test of hypotheses

d. Discussion of findings
4.2 Data Presentation

Data generated from the field will in this section be presented in table and figures.
A total of 81 copies of questionnaire were distributed to employees of the selected
insurance firms in Rivers State.

Table 4.1: Questionnaire Administration and Responses.

Number involved Usable copies (%)

Distribution 81 100
Useful copies returned 70 86.4%
Discarded Response 4 4.9%
Lost in Transit 7 8.7%

Source: Research Data, 2018.

Table 4.1 above shows that a total of 81 copies of questionnaires were distributed
amongst employees (staff) comprising of employees within the top, middle and
lower managerial echelon of the selected insurance firms. Out of the 81 copies of
questionnaire administered, only 70 copies returned were considered useful, this
accounted for 86.4% responses rate. Due to obvious mistakes and incomplete
responses, 4 copies representing 4.9% were discarded, while 7 copies representing
8.7% could not be retrieved due to misplacement and other reasons given by the
respondents. Therefore the total response rate that formed the basis of our analysis
was 70 copies representing 86.4% response rate.
4.2.1 DEMOGRAPHIC ANALYSIS

Table 4.2: Frequencies showing Gender of Respondents

Gander
Frequency Percent Valid Percent Cumulative
Percent
Male 52 74.3 74.3 74.3
Valid Female 18 25.7 25.7 100.0
Total 92 100.0 100.0
Source: Survey Data (2018)

In table 4.2 above, it shows that 52 (or 74.3%) of the respondents are male while
18 (or 25.7%) of the respondents are female.

Table 4.3: Frequencies showing Age of Respondents.

Age
Frequency Percent Valid Percent Cumulative
Percent
20-29 years 19 27.1 27.1 27.1
30-39 years 22 31.4 31.4 58.5
40-49 years 15 21.4 21.4 79.9
Valid
50-59 years 12 17.1 17.1 97.1
60 and above 2 2.9 2.9 100.0
Total 70 100.0 100.0
Source: Survey Data (2018)

Table 4.3 made us to understand that 19 (or 17.14%) of the respondents are within
the age range of 20-29 years, 22 (or 31.4%) are within the age range of 30-39years,
15(or 21.4%) are within 40-49 years, 12 (17.1%) are within the age range of 50-59
years while 2 (or 2.9%) are in the age range of 60 years and above.
Table 4.4 Percentage Distribution of Respondent’s Marital Status

marital status

Frequency Percent Valid Percent Cumulative

Percent

single 49 70.0 70.0 70.0

Valid married 21 30.0 30.0 100.0

Total 70 100.0 100.0

Source: Survey Data (2018)

From the above table of marital status we observed that 51 of the respondents are
single representing 55.4% and 41 of the respondents are married representing
55.6% of the total respondents.

Table 4.5 Percentage distribution of respondent’s educational Level

Educational qualification

Frequency Percent Valid Percent Cumulative

Percent

O’ level 17 30.9 30.9 30.9

OND/HND 22 56.4 56.4 85.3

Valid B.sc 25 9.1 9.1 94.4

M.sc 6 3.6 3.6 100.0

Total 70 100.0 100.0

Source: Survey Data (2018)

From the table above, O’Level represent 30.9%, OND/HND represent 56.4%, B.sc

represent 9.1%, M.sc holders represented 3.6% of the 70 respondents.

Table 4.6 Percentage distribution of respondent’s numbers of years in the
Organization

No. of years in the organization

Frequency Percent Valid Percent Cumulative

Percent

1-5 years 31 44.3 44.3 44.3

6-10 years 25 35.7 35.7 80.0

Valid
11-15 years 14 20.0 20.0 100.0

Total 70 100.0 100.0

Source: Survey Data (2018)

The table above shows the numbers of years the respondents has been with the
organization. Respondent who has spend 1-5 years in the organization were 31
representing 44.3%, 6-10 represent 35.7%, while 11-15 years in the organization
represented 20% of the total 70 respondents.

Table 4.7 Percentage distribution of respondent’s managerial position

managerial position

Frequency Percent Valid Percent Cumulative

Percent

Top managers 15 21.4 21.4 21.4

Middle managers 20 28.6 28.6 50.0

Valid
Lower managers 35 50.0 50.0 100.0

Total 70 100.0 100.0

The table above shows the managerial position of the respondents. Top managers
represents 21.4%, middle managers are 28.6% while the Lower manager represents
50% of the total respondents.
4.3 Univariate Analysis on the Dimensions of Internal Auditing Techniques
and Measures of Fraud Management in Insurance Rivers State.

Table 4.8

S/N Quality of internal audit work (5) (4) (3) (2) (1)
SA A N D SD
M1 The quality system of our organization is 25 16 10 12 7
defined
M2 Current procedures are in line with national 37 18 8 4 3
standards
M3 Our audit work are usually scrutinized by 30 24 11 5 0
industry experts
S/N Size of the internal audit

M4 The number of our staff in the internal audit 35 21 9 3 2

department is sufficient to embark on the
exercise
M5 The staff in the unit are dedicated and 29 26 5 8 2
trustworthy
M6 The size of the staff in the department are 31 28 4 6 1
according to industry specification
S/N Qualification of the internal audit

M7 Our internal auditors have the necessary 25 16 10 12 7

academic qualification

M8 The I.T. skills set is very rich 30 24 11 5 0

M9 We encourage our internal auditors to develop 29 26 5 8 2
themselves
S/N Fraud prevention
M7 There is written code of ethics business 21 25 13 6 5
conducts

M8 Ongoing fraud awareness training is carried 20 17 6 15 12

out
M9 Management set an example and enforce a 34 23 2 8 3
zero tolerance approach on fraud issues
S/N Fraud investigation

M1 There is an internal audit function within the 29 26 5 8 2

organization
M2 Internal auditors of our firm liaise with 21 25 13 6 5
external auditors to ensure fraud are detected
M3 Our internal auditors have access to reported 30 24 11 5 0
instances of fraud.

Total Response 426 339 123 111 51

Total No. Of questions answered ( 70 1050

respondents multiplied by 15 questions)

Total percentage of responses (%) 40.6 32.3 11.7 10.6 4.9

Source: Survey Data (2018)

Table 4.8 shows the response of 70 respondents on their opinion on internal audit

techniques and fraud management under study with reference to (quality of internal

audit work, internal audit size, qualification of the internal audit) and (fraud

prevention, fraud detection). A total of 1050 questions were answered concerning

quality of audit work, size of the internal audit, qualification of the internal audit,

fraud prevention and fraud investigation. Results revealed that 40.6% of the

respondent strongly agreed to the 1050 questions, 32.3% agreed to the questions,

11.7% were neutral to the questions, 10.6% disagreed while 4.9% strongly

disagreed to the questions concerning on internal audit techniques and fraud

management. This implies internal audit techniques have positive impact on the

fraud management.

4.4 TESTING OF HYPOTHESES

When data are collected, the essence is to examine the relationship that exist

between the data collected and the hypotheses that were stated for the test to see

whether the perceived notion about the population before the research work holds

or not.

In testing each hypothesis that had been stated on this study, we use the available

and relevant table of responses generated from the study.

The research statistics used for this study is the Pearson correlation analysis, while

the Z test was used to test the level of significance. This is because of the large

number of sample size (70). This will be tested at a significance level of 5% or

0.05 with the aid of Statistical Package for Social Sciences (SPSS).
Rejection Rule:

p-value approach: Reject H0 if p-value ≤ α

Accept H0 if p-value ≥ α

The tested hypotheses were interpreted through the Dana’s (2001) correlation
decision framework. Where

± 00– 0.19 (Very weak)

± 0.20- 0.39 (Weak)

± 0.40- 0.59 (Moderate)

± 0.60- 0.79 (Strong)

± 0.80- 0.99 (Very strong)

± 1 (Perfect)

While testing the hypothesis 2-tailed test was used and the significance level was
5% (0.05).

Table 4.9 Statistical Analysis for Hypothesis One

H01: There is no significant relationship between size of the internal audit and
fraud prevention.

Decision rule:

If p-value is greater than alpha value, accept the null hypothesis and reject the

alternate.
If p-value is less than alpha value, reject the null hypothesis and accept the

alternate. Below is the SPSS output result:

Correlations

Size of the Fraud

internal audit prevention

Pearson Correlation 1 .897

Size of the internal
Sig. (2-tailed) .000
audit
N 70 70
Pearson Correlation .897 1

Fraud prevention Sig. (2-tailed) .000

N 70 70

Decision:

From the result above, the correlation coefficient (r = 0.897) between size of the

internal audit and fraud prevention has a strong positive linear relationship. The

coefficient of determination (r2 = 0.80) indicates that 80% of fraud prevention can

be explained by size of the internal audit. The significant value of 0.000 (p< 0.05)

reveals a significant relationship. Based on that, the null hypothesis was rejected.

This implies that, there is a significant relationship between size of the internal

audit and fraud prevention.

Table 4.10 Statistical Analysis for Hypothesis Two

H02: The size of the internal audit has no significant impact with fraud
investigation.
Decision rule:

If p-value is greater than alpha value, accept the null hypothesis and reject the

alternate.

If p-value is less than alpha value, reject the null hypothesis and accept the

alternate. Below is the SPSS output result:

Correlations

Size of the Fraud

internal audit investigation

Pearson Correlation 1 .915

Size of the internal
Sig. (2-tailed) .000
audit
N 70 70
Pearson Correlation .915 1

Fraud investigation Sig. (2-tailed) .000

N 70 70

Decision:

From the result above, the correlation coefficient (r = 0.915) between size of the

internal audit and fraud investigation has a strong positive linear relationship. The

coefficient of determination (r2 = 0.84) indicates that 84% of fraud investigation

can be explained by size of the internal audit. The significant value of 0.000 (p<

0.05) reveals a significant relationship. Based on that, the null hypothesis was

rejected. This implies that, the size of the internal audit has significant impact with

fraud investigation.
Table 4.11 Statistical Analysis for Hypothesis Three

H03: There is no significant relationship between qualification of the internal audit

and fraud prevention.

Decision rule:

If p-value is greater than alpha value, accept the null hypothesis and reject the

alternate.

If p-value is less than alpha value, reject the null hypothesis and accept the

alternate. Below is the SPSS output result:

Correlations

Qualification of Fraud
the internal audit prevention

Pearson Correlation 1 .911

Qualification of the
Sig. (2-tailed) .000
internal audit
N 70 70
Pearson Correlation .911 1

Fraud prevention Sig. (2-tailed) .000

N 70 70

Decision:

From the result above, the correlation coefficient (r = 0.911) between qualification

of the internal audit and fraud prevention has a strong positive linear relationship.

The coefficient of determination (r2 = 0.83) indicates that 83% of fraud prevention
can be explained by qualification of the internal audit. The significant value of

0.000 (p< 0.05) reveals a significant relationship. Based on that, the null

hypothesis was rejected. This implies that, there is a significant relationship

between qualification of the internal audit and fraud prevention.

Table 4.12 Statistical Analysis for Hypothesis Four

H04: The qualification of the internal audit has no significant impact with fraud
investigation.

Decision rule:

If p-value is greater than alpha value, accept the null hypothesis and reject the

alternate.

If p-value is less than alpha value, reject the null hypothesis and accept the

alternate. Below is the SPSS output result:

Correlations

Qualification of Fraud
the internal audit investigation

Pearson Correlation 1 .899

Qualification of the
Sig. (2-tailed) .000
internal audit
N 70 70
Pearson Correlation .899 1

Fraud investigation Sig. (2-tailed) .000

N 70 70

Decision:
From the result above, the correlation coefficient (r = 0.899) between qualification

of the internal audit and fraud investigation has a strong positive linear

relationship. The coefficient of determination (r2 = 0.81) indicates that 81% of

fraud investigation can be explained by qualification of the internal audit. The

significant value of 0.000 (p< 0.05) reveals a significant relationship. Based on

that, the null hypothesis was rejected. This implies that, the qualification of the

internal audit has significant impact with fraud investigation.

Table 4.13 Statistical Analysis for Hypothesis Five

H05: There is no significant relationship between quality of the internal audit work
and fraud prevention.

Decision rule:

If p-value is greater than alpha value, accept the null hypothesis and reject the

alternate.

If p-value is less than alpha value, reject the null hypothesis and accept the

alternate. Below is the SPSS output result:

Correlations

Quality of audit Fraud

work prevention

Quality of audit work Pearson Correlation 1 .963

 Sig. (2-tailed) .000

N 70 70
Pearson Correlation .963 1

Fraud prevention Sig. (2-tailed) .000

N 70 70

Decision:

From the result above, the correlation coefficient (r = 0.963) between quality of

internal audit work and fraud prevention has a strong positive linear relationship.

The coefficient of determination (r2 = 0.93) indicates that 93% of fraud prevention

can be explained by quality of internal audit work. The significant value of 0.000

(p< 0.05) reveals a significant relationship. Based on that, the null hypothesis was

rejected. This implies that, there is a significant relationship between quality of

internal audit work and fraud prevention.

Table 4.14 Statistical Analysis for Hypothesis Six

H06: The quality of the internal audit work has no significant impact with fraud
investigation.

Decision rule:

If p-value is greater than alpha value, accept the null hypothesis and reject the

alternate.
If p-value is less than alpha value, reject the null hypothesis and accept the

alternate. Below is the SPSS output result:

Correlations

Quality of audit Fraud

work investigation

Pearson Correlation 1 .926

Quality of audit work Sig. (2-tailed) .000

N 70 70
Pearson Correlation .926 1

Fraud investigation Sig. (2-tailed) .000

N 70 70

Decision:

From the result above, the correlation coefficient (r = 0.926) between quality of
internal audit work and fraud investigation has a strong positive linear relationship.
The coefficient of determination (r2 = 0.86) indicates that 86% of fraud
investigation can be explained by quality of internal audit work. The significant
value of 0.000 (p< 0.05) reveals a significant relationship. Based on that, the null
hypothesis was rejected. This implies that, the quality of the internal audit work
has significant impact with fraud investigation.

4.5: DISCUSSION OF FINDINGS

The first hypothesis (Ho1) stated that there is no significant relationship between

size of the internal audit and fraud prevention. This was tested at 5% significance

level using Pearson correlation coefficient. The result from our analysis showed a

p-value of 0.000 while the alpha value was 0.05, therefore, following the decision

rule the null hypothesis was rejected and the alternate hypothesis accepted which

state that there is a significant relationship between size of the internal audit and

fraud prevention. Our analysis also showed correlation coefficient of 0.897 and

coefficient of determination of 80%. This implies that there is a strong positive

relationship between size of the internal audit and fraud prevention.

The second hypothesis (Ho2) stated that the size of the internal audit has no

significant impact with fraud investigation. This was tested at 5% significance

level using Pearson correlation coefficient. The result from our analysis showed a

p-value of 0.000 while the alpha value was 0.05, therefore, following the decision

rule the null hypothesis was rejected and the alternate hypothesis accepted which

state that there is a significant relationship between size of the internal audit and

fraud investigation. Our analysis also showed correlation coefficient of 0.915 and

coefficient of determination of 84%. This implies that the size of the internal audit

work has significant impact with fraud investigation.

The third hypothesis (Ho3) stated that there is no significant relationship between

qualification of the internal audit and fraud prevention. This was tested at 5%

significance level using Pearson correlation coefficient. The result from our

analysis showed a p-value of 0.000 while the alpha value was 0.05, therefore,

following the decision rule the null hypothesis was rejected and the alternate

hypothesis accepted which state that there is a significant relationship between

qualification of the internal audit and fraud prevention. My analysis also showed

correlation coefficient of 0.911 and coefficient of determination of 83%. This

implies that there is a strong positive relationship between qualification of the

internal audit and fraud prevention.

The fourth hypothesis (Ho4) stated that the qualification of the internal audit has no
significant impact with fraud investigation.

This was tested at 5% significance level using Pearson correlation coefficient. The

result from our analysis showed a p-value of 0.000 while the alpha value was 0.05,

therefore, following the decision rule the null hypothesis was rejected and the

alternate hypothesis accepted which state that there is a significant relationship

between qualification of the internal audit and fraud investigation. My analysis

also showed correlation coefficient of 0.899 and coefficient of determination of

81%. This implies that the qualification of the internal audit has significant impact

with fraud investigation.

The Fifth hypothesis (Ho5) stated that there is no significant relationship between

quality of internal audit work and fraud prevention. This was tested at 5%

significance level using Pearson correlation. The result from our analysis showed a

p-value of 0.000 while the alpha value was 0.05, therefore, following the decision

rule the null hypothesis was rejected and the alternate hypothesis accepted which

state that there is a significant relationship between quality of internal audit work

and fraud prevention. Our analysis also showed Pearson correlation to be 0.963

and co-efficient of determination of 93% which implies that there is a strong

positive relationship between quality of internal audit work and fraud prevention.

The sixth hypothesis (Ho6) stated that the quality of the internal audit work has no

significant impact with fraud investigation.

This was tested at 5% significance level using Pearson correlation. The result from

our analysis showed a p-value of 0.000 while the alpha value was 0.05, therefore,

following the decision rule the null hypothesis was rejected and the alternate

hypothesis accepted which state that there is a significant relationship between

quality of internal audit work and fraud investigation. Our analysis also showed

correlation co-efficient to be 0.926 and co-efficient of determination of 86%. This

implies that the quality of the internal audit work has significant impact with fraud

investigation.