Impact Of Internal Audit In Preventing And Controlling Fraud In Nigerian Public Sector.

Abstract

This study was carried out to assess the impact of auditing in preventing and controlling fraud and the effectiveness of internal control put in place to curb fraud and irregularities. This study was explorative research using primary data which was collected through questionnaire. The questionnaires were administered personally to the auditors and account officers of Oyo state Secretariat, Ibadan, Nigeria, and the sample size of 52 was conveniently and deliberately chosen. The data was analysed using percentage distribution, frequency tables and the Spearman rank correlation. Findings from this research revealed that Auditing has a great impact on fraud and financial irregularities and that it has reduced the occurrence of fraud. Also, the internal control system employed has been effective enough to reduce the occurrence of fraud and irregularities. This study concluded that the prevention and control of fraud and the irregularities contained in the financial statement is a responsibility of auditors through a thorough examination of records and the review of internal control designed by the management of an organization. Therefore, audit activities carried out regularly will ensure a proper check on the financial records of an organization to prevent and control fraud of any cases and irregularities.