Effective Internal Control System As A Measure Of Fraud Prevention In The Public Service

1.1 INTRODUCTION
The Institute of Charter Accountants defines the concept internal control system as “The whole system of control financial and otherwise established by the management in order to carry on the business of the enterprise in an orderly and efficient manner, ensure adherence to management policies, safeguard the assets and secure as fact as possible the completeness and accuracy check and internal audit” fraud is a threat common to most organizations. It is a threat to the effective utilization of resources and as such, it will always remain an important concern to management.
Fraud needs to be deleted and potential fraud needs to be prevented. Effective internal control system is vital for the survival of any organization it serves as a check on fraudulent activities of the management and employees an organization and it brings about solutions to likely fraudulent acts in an organization.
Management is totally responsible for establishing the internal control system in an organization.
Auditing today is based on internal control. A client during the course of financial period so because it is client during the course of so because it is undesirable for an auditor to carry out a hundred percent check on all the transactions enters this.
Internal control system is a necessity in large organizations especially where management is removed from day to day routine operations of the organization. Internal control system include controls exercised by management which comprise of rules and regulations as well as procedures set up by organizations bearing also the problems set up by organizations bearing in also the problem of limited resources.
If the internals control system is effective in an organization, it ensures maximum use of resources and also reduces to the barest minimum fraud.
The feed for affective internal control system therefore cannot be over-emphasized. It is important because of the existence of risks and also all form irregularities in an organizations.ter of flatly, the major frauds in public and private enterprises can be traced to lapse in the internal control system and the existence of poor control environment in organization.
An effective internal control system and its fraud preventive measures in an organization will help to prevent fraud and errors in an organization thereby reducing fraud to its minimum than when internal control is not in existence or when there is weakness in the system.

1.2 STATEMENT OF PROBLEM
An internal control system on its own guarantee and effective and efficient administrative completeness and accuracy of records or a fraud and error free environment due to the following reasons:
a. Two or more dishonest persons working in collusion can override the efficiency of the internal control system.
b. Management is in a position to step over the control it has set up
c. Those in whom the authority is vested can abuse authorization control.
d. A single dishonest employee can override the efficiency of the internal control system.

1.3 PURPOSE OF THE STUDY
They are:-
1. To ensure that management policies are implemented appropriately
2. To ensure the existence of a structures framework for efficient and effective channeling resources.
3. To ensure that there is important and accurate documentation that can provide information on which significant based.
4. To ensure timely records of relevant strategic ad tactic decision are based.
5. To ensure that vital and expensive assets on which operation of the organization critically depends on are prevented from misuse and misappropriation.

1.4 RELEVANCE OF THE STUDY
The relevance of this study is in its attempt to find out and evaluate those factors responsible for effective internal control system in the board of internal revenue (BI) Enugu State, Nigeria.
The significance will include the following:
1. To ensure, the researcher finds out problems encountered in relation to the internal control system and make appropriate recommendation for improvement.
2. To serve as a guide for organization having weak internal control systems to improve on the quality of theirs and their intern make it more effective.
3. To serve as guide to others who are likely to carry on research on this study in future.

1.5 METHODOLOGY AND HYPOTHESIS STATEMENT
In order to carry out this study, both primary and secondary data will be made use of Null and alternative hypothesis will be used for general statement of hypothesis.
HO: Will represent Null hypothesis
H1: Will represent Alternative hypothesis
5.1 HO – Internal control system is not effective in board of internal revenue Enugu State Nigeria to provide a fraud preventive measure.
Internal control system is effective in Board Of Internal Revenue Enugu State Nigeria to provide a fraud preventive measure.
5.2 HO-Two or more dishonest persons working in collusion can override the efficiency of the best possible controls.

1.6 SCOPE AND LIMITATIONS OF STUDY
This study is concentrated on effective internal prevention in an organization and it centres on the internal control system of the Board of Internal Revenue Enugu State Nigeria
The time available to complete this project has placed limitations too. However the researcher will overcome these constraints by streamling the research methodology.
The assumption that respondents would not honestly and accurately answer the survey questions is a limitation in the sense that the fear of loosing their jobs will not make them reveal the secrets of their organization.

1.7 DEFINITION OF TERMS
In this study the researcher will try as much as possible to explain technical terms used during the course of study. They are as follows:
1. Internal control
In the AICPA’S codified standards covering auditing practice (320:09). Internal control is defined as “Internal control comprise the plan if organization and all of the co-ordinate methods to safeguard its assets check the accuracy and reliability of its accounting data, promote operational efficiency and encourage adherence to managerial policies.
It is the whole system of controls financial and otherwise established by the management in order to carry on the business of the company in an orderly67 and efficient manner.
2. AUDITORS
It is a firm of professional accountants all parties one or more of whom is responsible for the control of the audit and signing of the audit report on behalf of the firm.
3. INTERNAL AUDIT
The standards for the professional practice of internal auditing released in may 21978 defined internal auditing as an “independent appraisal function established within its activities as a service to the organization”
4. INTERNAL AUDITORS
Auditors that have been employed by the management of organizations, individuals, companies, partnership, and government as well as other agencies.
5. EXTERNAL AUDITORS
These are independent professional Accountants (qualified) often refereed to as independent to as independent auditors or certified public Accountants.
6. INTERNAL CHECK
It is defined as the checks on the day today transactions, which operate continuously as part of the routine system where the work of one person is proved independently by another person.
7. AUDIT COMMITTEE
It is a committee setup by the shareholders to examine the directors’ report and make recommendation on the annual general meeting