Abstract
This study analyzes the Internal Audit Techniques and Fraud Prevention in Bauchi State Local Government Councils. The relevant literatures were reviewed. The data for the study were collected from both the primary and secondary sources. The primary sources data were collected from the thirteen (13) local governments internal audit units through self-administered questionnaires to the sample size of the study. The secondary sources were documents from Bauchi state ministry for local government affairs. Several statistical tools were used including tables, simple percentages, Chi-square and Pearson Product Moment Correlation Coefficient to analyze the data and test the null hypotheses formulated. The study revealed that the internal audit unit at local government put necessary measures to prevent fraud but lack total independent freedom to carry out their function effectively. The paper concludes that The internal audit units at local government level in Bauchi state are performing the function of fraud prevention and the internal audit techniques/procedures capable to prevent any type of fraud was effective. It was discovered that internal audit unit at local governments’ level in Bauchi state are not independent, and this affected their functions. The study recommends among other things that, Bauchi state government through House of Assembly should enact laws/legislation that will grant internal audit unit autonomy to discharge their functions. Effective internal audit techniques/procedures capable of preventing fraud should be installed by the councils and that adequate measures and control should be put in place. DOI: 10.5901/mjss.2015.v6n4p232
Highlights
Internal audit being a unit in any establishment set up by the management of an organization for the review of internal control system as a service to the organization
The general objective of this study is to examine the internal audit technique and fraud prevention in Bauchi State local government
The internal audit is an integral unit in any organization and local governments in Bauchi state are not exception
Summary
Internal audit being a unit in any establishment set up by the management of an organization for the review of internal control system as a service to the organization. Chartered Institutes of Public Finance and Accountancy UK 2003 define Internal audit as an assurance function that primarily provides an independent and objective opinion to the organization on the degree to which the internal control environment supports and promotes the achievement of the organizations objectives. It objectively examines, evaluates and reports on the adequacy of internal control as a contribution to the proper, economic, efficient and effective use of resources, internal audit a component of government financial management and a tool for improving the performance of the government sector (Diamond, 2002: 1). In Organization for Economic Corporation and Development (OECD) countries, the demand for improved accountability and greater transparency within government has resulted in a call for more information about government programs and services,(Diamond 2002:5)
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