Effect of Internal Control System on Fraud Prevention in Ministries, Department and Agencies in Nigeria

Abstract

In this study, an examines of the effect of internal control on fraud prevention in the Ministries, Departments, and Agencies (MDAs) of the North Central zone is conducted. In this work, the COSO internal control model, control activities, risk assessment, control environment, monitoring, and communication /information are taken as factors affecting fraud prevention in MDA of North Central zone. In this survey, to get the primary data, a 5-point Likert-scale questionnaire is used. In this work, the total number of sampling units taken is three hundred (300) respondents; in fact, this survey aims to get responses from eight hundred and fifty-six (856) MDA participants, including accountants and auditors. For data validity, Cronbach alpha values are used, and multiple regressions are made for testing each proposed hypothesis. From this work, it can be concluded that risk assessment and control environment are shown to be fewer effective factors in Nigeria MDA for preventing frauds. In contrast, control activities, monitoring, and communication and information are recognized as highly effective factors in this concern. From this work, it can be concluded that control activities play an important role in checking fraudulent activities and act as deterrents for those who are presumptuous to commit fraud. Thus, in MDA of North Central zone in Nigeria, it is advised that the control system be made more effective, such as implementing individual control dds like control of duties and authorizations, and physical control methodologies.