Internal Audit Techniques and Fraud Prevention: A Case Study of Selected Local Government Councils in Bauch State

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