Effect of Internal Audit Quality on Fraud Prevention in Nigerian Public Sector Organizations

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Effect of Internal Audit Quality on Fraud Prevention in Nigerian Public Sector Organizations

Nnabuenyi, Cherechi Flourish1, Geoffrey Ndubuisi Udefi PhD2, Ojeh, Augustine PhD3 & Ngwa, Christian Ugonna PhD4

Abstract

This study investigates the impact of internal audit quality on fraud prevention in Nigerian public sector organizations. Using a survey method, data were collected from 286 respondents, including audit professionals and staff across various public sector institutions. The findings reveal that a significant majority of respondents (52.8%) perceive internal audit systems as effective or very effective in detecting fraud. Furthermore, 62.9% of respondents believe that internal audits contribute to a reduction in the frequency of fraud incidents within their organizations. A notable proportion (64.3%) emphasized the importance of highly qualified audit staff in preventing fraud, with most respondents agreeing that advanced qualifications enhance audit effectiveness. However, a small portion (19.6%) reported that internal audits had no effect on fraud reduction, while a minority (6.3%) even observed an increase in fraudulent activities. The study concludes that while internal audits are generally regarded as effective tools for fraud detection and prevention, their success is contingent on both the qualifications of audit staff and the quality of audit processes. Based on these findings, the study recommends enhancing audit staff qualifications, strengthening audit processes, and fostering an anti-fraud culture within public sector organizations to further improve fraud prevention efforts.

Keywords: Internal Audit Quality; Fraud Prevention; Public Sector Organizations; Audit Effectiveness; Audit Staff Qualifications

IJAFIS 6(2)18-33Download

Cite as:
Nnabuenyi, C. F., Udefi, G. N., Ojeh, A., & Ngwa, C. U.  (2025). Effect of Internal Audit Quality on Fraud Prevention in Nigerian Public Sector Organizations. International Journal of Accounting, Finance, and Investment Strategies, 6(2), 18-33. https://doi.org/10.5281/zenodo.15343991

© 2025 The Author(s). International Journal of Accounting, Finance, and Investment Strategies published by ACADEMIC INK REVIEW.

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