Assessing the Effectiveness of Internal Control Systems on Fraud Prevention and Detection of Selected Public Institutions of Ekiti State, Nigeria

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Published: 2023-08-03

Page: 231-244


Awotomilusi Niyi Solomon *

Department of Accounting, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria.

Oke Oluwagbemi Emmanuel

Department of Accounting, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria.

Dada Samuel Ajibade

Department of Accounting, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria.

Dagunduro Muyiwa Emmanuel

Department of Accounting, Afe Babalola University, Ado-Ekiti, Ekiti State, Nigeria.

*Author to whom correspondence should be addressed.


Abstract

Fraudulent activities pose a significant threat to the integrity, efficiency, and financial stability of public institutions worldwide. The misappropriation of public funds not only undermines public trust but also hampers the socioeconomic development of a nation. Hence, this study examined the effect of internal control systems on fraud prevention and detection in public institutions in Ekiti State, Nigeria. With a great focus on the control environment, monitoring, information and communication, risk assessment, and control activities. The study used a survey research design and collect data using self-administered questionnaires. The structured questionnaire used the 5-Pont Likert Scale system. The targeted population constitutes the management staff, staff of the internal audit department, and finance and accounts staff of all public institutions in Ekiti State, Nigeria with a total population of 627.  The sample size of 244 was considered based on Slovin’s formula. The data collected were analyzed using both descriptive and inferential statistics. The result showed that control environment, monitoring, and information and communication had a significant positive effect on fraud prevention and detection of public institutions in Ekiti State, Nigeria. on the other hand, risk assessment and control activities showed an insignificant positive relationship. It was concluded that public institutions should explore the advantage of information and communication systems to curb fraudulent practices in the public sector. The study recommends that public institutions in Nigeria particularly in Ekiti State should place more emphasis on controlling their environment, monitoring activities, and ensuring the effective provision of information and communication system.

Keywords: Internal control systems, fraud detection and prevention, control environment, risk assessment, monitoring


How to Cite

Solomon , A. N., Emmanuel , O. O., Ajibade , D. S., & Emmanuel , D. M. (2023). Assessing the Effectiveness of Internal Control Systems on Fraud Prevention and Detection of Selected Public Institutions of Ekiti State, Nigeria. Asian Journal of Economics, Finance and Management, 5(1), 231–244. Retrieved from https://globalpresshub.com/index.php/AJEFM/article/view/1845

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