Effectiveness Of Internal Control System And Fraud Prevention: Evidence From Gombe State Internal Revenue Service

Abstract

The need for an effective internal control system cannot be underestimated as it helps an organization to articulate its objectives, strategy, and grow on a sustained basis. This study determines the interface between effective internal control systems and fraud prevention. Survey research design was employed, primary data was obtained from 62 staff of Gombe state internal revenue service using a closed-ended questionnaire. Primary data was analyzed using multiple regression analysis. Regression results shows R 2 of 0.937, F-statistics of 16.288 and P-value of 0.000 at 5% significance level. The findings revealed that internal control system exist in Gombe state internal revenue service, the finding confirmed the effectiveness and usefulness of internal control system. in addition, the findings revealed a significant interface between effective internal control system in fraud prevention and detection. Hence the study concluded that the influence of an effective internal control system on fraud prevention and detection cannot be overemphasized. It was recommended that the management should ensure that an effective system of internal control is put in place since strengthening internal control will significantly minimize fraud. In addition, management should take system of internal control seriously to avoid errors, prevent and detect fraud.