EFFECTIVENESS OF INTERNAL CONTROL SYSTEM ON FRAUD DETECTION IN NIGERIAN PUBLIC SECTOR: A STUDY OF THE CENTRAL BANK OF NIGERIA
DOI:
https://doi.org/10.18623/rvd.v23.n4.4940Keywords:
Fraud Detection, Control Environment, Risk Assessment, Control Activities, Information and Communication, Monitoring Activities, Emotional IntelligenceAbstract
This paper attempts to evaluate how the elements of internal control systems affect fraud detection in the Central Bank of Nigeria. It also assessed the moderating role of emotional intelligence on such influence. The research was based on the COSO framework coupled with a quantitative approach and survey strategy. A structured questionnaire with a 5-point Likert scale was adopted. The study received 401 valid responses, which were used for multiple regression and mediation analyses. The research identifies Risk Assessment and Information and Communication, elements of the COSO framework, as well as Emotional Intelligence, to significantly promote fraud detection. Similarly, the three sub-factors of Control Environment, Control Activities, and Monitoring Activities do not have any significant effect on fraud detection. The effects of both Risk Assessment and Information and Communication were also found to be moderated by emotional intelligence and not just a direct predictor. These results highlight the consequences of integrating behavioural competencies with formal control structures to enhance the capability of detecting fraud in the organisation. The study concludes that a combined focus on procedural safeguards and emotional awareness offers a more effective approach to combating fraud, with implications for training, internal system design, and institutional policy reform in high-risk financial institutions.
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