Assessment of Association between Financial Fraud Cases in reference to Transaction Volume & E-Auditing

Abstract

After 1991, when the Indian economy was liberalized, the banking sector has seen significant growth and improvement. Despite the fact that the banking industry is largely well governed and controlled, it faces its own collection of problems in terms of fair standards, financial distress, and corporate governance. The use of e-banking has resulted in a large rise in the number of banking transactions. It has also simplified and increased customer service delivery. According to the report, cyber theft causes money to be lost that belongs to either the bank or the consumers. It could even jeopardize the bank's credibility, among other things. This study endeavors to the association between the Number of cases of fraud committed with the advancement of E-Auditing with every successive year transaction volume. For the purpose of study data of 12 years has been considered from 2009-10 to 2020-21 and linear regression and analysis of variance has been used to assess the association between above mentioned factors. This has been observed in the study that Number of cases of fraud committed will reduce with every successive year and although more transaction will enhance the possibility of fraud committed. Despite the security issues associated with electronic banking in India, the researcher concluded that it has increased bank operational performance. Based on these results, the researcher suggests that through Reserve bank of India, Govt. should implement appropriate security measures for different electronic banking networks, review the BVN system, and educate customers about electronic banking operations, among other things.