Effective Internal Control System and Fund Management Model (FMM): Solutions to Fraud, Errors and Irregularities in Nigeria

Abstract

Internal auditing system is very crucial as one of the internal control mechanisms. The effectiveness of the internal audit department is tailored towards excellent fund management. Problem of information asymmetries, fraud errors and irregularities are controlled. This paper adopts the conceptual methodology. The article concludes that the effective internal auditing system and excellent fund management system will enhance organizations to achieve their goal. This paper examines the effect of excellent internal auditing system and fund management. The internal control mechanisms can lead to effective management of revenue generated by institutions. Errors, irregularities and fraud could be minimized if the FMM is adopted. This paper therefore recommends for public institutions to adapt or adopt the FMM as it is a medium for controlling of fraud by the administrator.