THE EFFECT OF FINANCIAL MANAGEMENT AND INTERNAL CONTROL SYSTEMS IN PREVENTION OF FINANCIAL FRAUD IN AKOKO SOUTH LOCAL GOVERNMENT COUNCIL

ABSTRACT

This study examined the effect of financial management and internal control systems in prevention of financial fraud in Akoko South local government council. The descriptive research methodology was adopted to gather opinions from Akoko Local Government staff. The population of the study included the staff of finance department. The study made use of structured questionnaire and key information interviews was conducted in the finance department of Akoko Local Government. The descriptive as well as inferential methods were used to analyse responses. The findings showed that there is a positive relationship between strategies in fraud analysis and financial reporting quality as well as a positive perception of the effectiveness of the internal control system in preventing financial fraud within the local government council. Based on the above findings, this study concluded that it is important for local government authorities to embrace forensic auditing techniques and other strategies as part of their efforts for good internal control system and to combat financial fraud and promote transparent financial management practices. The study therefore recommended that the council should prioritize the adoption of trend analysis techniques as part of their internal control practices and also the local government council should actively seek opportunities for collaboration and information sharing with other relevant stakeholders, such as government agencies, professional bodies, and academic institutions.