Impact of Internal Control System on Prevention of Fraud in the Public Sector in North Central Nigeria

Abstract

This paper investigates the impact of internal control systems in limiting fraud within Nigeria's public sector, with a special focus on critical features such as asset protection, segregation of duties, and approval processes. The study also evaluates how these internal controls effect whistle-blowing initiatives, accountability initiatives, ethical standards, and management integrity. Data were collected from 300 participants across Nigeria's North Central area, and multiple regression analysis was utilized to examine the correlations between internal control mechanisms and fraud prevention techniques. The results demonstrate a strong influence of internal control systems on all dimensions of fraud deterrence. Notably, a high positive association was seen with whistle-blowing policies (R = 0.931, p < 0.05), accountability (R = 0.930, p < 0.05), ethics policy (R = 0.934, p < 0.05), and management integrity (R = 0.947, p < 0.05). These findings correlate with prior literature, emphasizing the crucial importance of internal control mechanisms in minimizing fraud and increasing accountability within the public sector. The study continues by underlining the significance of enhancing internal control mechanisms to ensure transparency, ethical conduct, and accountability. It suggests boosting control resources, promoting ongoing professional development, providing strong whistle-blower protections, and fostering a culture of honesty. Additionally, regular audits and evaluations of these systems are proposed to further safeguard against fraud and maintain public confidence in government.