The Effect Of Internal Audit On Fraud Detection And Prevention In The Nigerian Public Sector: A Case Study Of Port Harcourt Electricity Distribution Company
ABSTRACT
This study examined the effect of internal audit on fraud detection and prevention in the Nigerian public sector, using Port Harcourt Electricity Distribution Company, Yenagoa Branch as a case study captured by functional internal audit unit, independent internal auditors and effective internal control system. The study employed survey design in which a set of questionnaire was administered on the respondents of the company used as sample. Multiple regression technique and ANOVA were used for the analysis. The results indicated that the level of fraud control in the organisation during the period covered was low; and that functional internal audit unit, independent internal auditors and effective internal control system in the Port Harcourt Electricity Distribution Company can limit the fraudulent activities among the staff of the company by 35, 13 and 18 percent respectively; the results also showed that internal audit captured by functional internal audit unit, independent internal auditors and effective internal control system were statistically significant in determining the fraudulent act in the company under study. Based on the findings, the study concluded that functional internal audit unit, independent internal auditors and effective internal control system are carried out to determine the effectiveness and impact of internal audit on fraud detection and prevention. The study recommended that the independence of internal auditors should be made more effective to checkmate any increase in the perpetration of fraud. The government is advised to create legal backing to the Internal Auditor that will compel them to report any findings of corruption directly to the board, Auditor-General of the Federation and anti-graft agencies.