INTERNAL AUDIT EFFECTIVENESS AND FRAUD CONTROL IN SELECTED GOVERNMENT PARASTATALS.

ABSTRACT This study examined the effectiveness of internal audit and its contribution to fraud control in selected government parastatals in Edo State, Nigeria. The research focused on key internal audit dimensions such as competency, transparency, independence, objectivity, and the work environment, exploring how these factors influence fraud detection and prevention within public institutions. A quantitative research design was employed, and data were collected through structured questionnaires administered to internal audit personnel across selected government agencies. The analysis was conducted using the Statistical Package for the Social Sciences (SPSS) version 27, applying both descriptive and inferential statistics to interpret the findings. Results indicated that internal audit competency enhances fraud control by enabling auditors to apply their knowledge and skills effectively. Transparency in internal audit functions builds trust and facilitates timely identification of irregularities, while independence empowers auditors to operate without undue influence. Furthermore, audit objectivity—characterized by evidence-based judgments and ethical conduct—was shown to significantly support fraud mitigation efforts. A conducive work environment, including adequate resources and managerial support, also played a crucial role in strengthening the internal audit function’s impact on fraud control. The study concludes that strengthening internal audit structures is vital to enhancing fraud control mechanisms in the public sector. It recommends continuous training for auditors, the institutionalization of audit independence, and fostering an organizational culture that supports transparency and ethical practices. These findings contribute to the growing body of knowledge on public sector accountability and underscore the importance of internal audit as a strategic tool in combating fraud in government institutions.