Effect of Internal Control System on Fraud Prevention in Public Tertiary Institutions of Taraba State

Abstract

The main objective of the study was to establish the effect of internal control system on fraud prevention in public tertiary institutions of Taraba state. The study was anchored on agency theory and the contingency theory of organization. The study used the descriptive survey design. Transparency and flow of information were obtained primarily from a random sample of 64 staff of the bursary and audit departments in the three public tertiary institutions of Taraba State. The target population being the different categories of staff in bursary and internal audit units of the institutions because the staff are directly involved in the management, and financial planning and control in the institutions. Primary data was collected from sample of the population using closed ended questionnaire. The fully completed and returned 50 questionnaires were coded and analyzed using multiple linear regression. The study concluded that the control environment, risk assessment, control activities and information and communication as indicators of internal control systems have significant influence on fraud prevention in the three public tertiary institutions of Taraba State. Therefore, the study recommends that internal control systems among the institutions should be enhanced by adopting effective monitoring and separate evaluation of their system of control and adopt different risk assessment procedures