APPRAISAL OF THE EFFECTIVENESS OF INTERNAL CONTROL IN PREVENTING FINANCIAL FRAUD IN SOME SELECTED BANKS IN PLATEAU STATE

ABSTRACT Financial fraud has historically posed a significant threat to the stability and reputation of financial institutions worldwide. In response to this challenge, effective internal controls play a crucial role in preventing and detecting fraudulent activities. This study aim to evaluate the effectiveness of internal controls in preventing financial fraud within some selected Banks operating in Plateau State, Nigeria, with focus on five key variables which are control environment, control activities, monitorin of controls, risk of financial fraud traced by banking institutions despite the implementation of internal control measures. The study was to assess the strength of the control environment, evaluate the effectiveness of control activities, examine the monitoring mechanisms, analyze the risk assessment, and assess the adequacy of its information and communication systems in preventing financial fraud within some selected banks in Plateau State.Survey design method was adopted.300 Questionnaires were administered according to the sample size of 1400 population of the case study using Krejcie and Morgan table. It was found out that control environment and control activities have no significant effects on fraud prevention while monitoring of control risk assessment and information and communication have no significant effects/relationship with fraud prevention. The study recommended that banks should have a board of director, competent staff with integrity have good policies and procedural implementation. It should also provide a functional internal audit system and an efficient ICT in its functional services for disseminating information from upper to lower managers.