IMPACT OF ONLINE BANKING ON EXTERNAL AUDIT WORK IN MONEY-DEPOSIT BANK IN NIGERIA

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
In the past few years, banking activities in Nigeria have increasingly depend on the development of information and communication technology customers insatiable appetite for institutions to fast. Forward to a more radical transformation of the business system and model by embracing online banking. Online banking is growing rapidly and the global acceptance has reinforced the spread of penetration. Electronic banking has been around and transform by the internet. A new delivery channel for banking service that benefits both customers and banks access is fast convention and available round the clock, where the customer is located. Also, bank can provide other services efficient and act substantially cover cost. The banking sector play a central role in the economy development of any nation and is therefore objective of regulation in the banking industry is to protect the interest of depositors who are the primary stakeholder in the industry. The regulation of the banking sector has in the banking law and the financial institution according to BOFIA (1991) is usually coordinated by the central bank (CBN). However, other regulations are properly coordinated while the central bank and other regulation are directly responsible for the attainment of the objectives, auditors are responsible for auditing of these institution.

1.2 STATEMENT OF RESEARCH PROBLEM
We appreciate the fact that Nigeria banks include the financial service, industry cannot afford to be indifferent to the wind of technology innovation blowing across worldwide and staff competition, it has engender. However, the introduction of online banking in Nigeria has brought a number of issues raised the external auditor concern.

1.3 RESEARCH OBJECTIVES
To ascertain the impact of online banking on external audit work on money deposit especially in Nigeria and the contribution to the growth of the economy without any fear or favour the auditor or the audit work must be done with a view of giving a true and fair view of any account. Therefore, the following are some of the objectives of this research work.
1. To establish an understanding of the risk involve in online banking pose to the user.
2. To ensure that management established an institute to control the risk arising from the internet banking and other type of risk.

1.4 RESEARCH QUESTION
The study is carried out to address the following question;
1. What risk does online banking pose to the user?
2. How can online banking be used to determine whether management has institute controls that are appropriate to the type and level of risk arising from internet banking?

1.5 RESEARCH HYPOTHESIS
For the purpose of the study, the hypothesis used are as followed;
Hypothesis One
Ho:     Online banking does not affect external auditor in commercial bank in Nigeria and supervisory agent in the bank.
H1:     Online banking affect external auditor in commercial bank in Nigeria and supervisory agent in the bank.
Hypothesis Two
Ho:     The introduction of computerized banking sector does not affect the performance of the external audit and the supervisory agent in the supervisor of the bank.
Ho:     The introduction of computerized banking sector affect the performance of the external audit and the supervisory agent in the supervisor of the bank.

1.6 SIGNIFICANCE OF THE STUDY
This study will assists the user having known the importance and the impact on online banking play on external audit work in money deposit in Nigeria, there is therefore an urgent need to ensure the impact is made known and to restore the confidence on the customer. The study will attempt to show from its findings of research whether this much talked about the impact of online banking on external audit work cannot be overemphasized. It is expected that the result and recommendation from this study will be of great benefit to the sector as whole and ordinary man a great benefit. The study will also be an assistant to auditors and other practitioners, investors and general public alike in that they will now be aware of impact of online banking in the economy. The research study will be of great benefit to other researchers and also the student of higher learning as it will give them a proper understanding of online transactions.

1.7 SCOPE OF THE STUDY
In examine critically the issue at hand the period cover by this study is from the year 2000 to date since online banking took off on the 24th November 2000 by First Atlantic Bank Plc (now sky bank plc). This study is to enable us have a broad view of the issue to assist us critically examine the issue, Ecobank plc will be used as a case study.

1.8 LIMITATIONS OF THE STUDY
The study was however constrained by some banks that operate online banking that were not prepared to assist in disclosing information on certain aspect of operation that would have been relevant to the research work. Some respondent do not answer some question and this had some implication on the result. There was also a problem associated with shortage of relevant literature this is as a result of the fact that online banking is relatively few to Nigeria economy. The limitation not withstanding necessary rigor and thoroughness it deserve by the use of adequate analyzed by the appropriate statistical.