THE EFFECT OF A GOOD ACCOUNTING SYSTEM DETECTION IN FRAUD AND PREVENTION (A STUDY OF ABC TRANSPORT COMPANY, OWERRI BUSINESS UNIT, IMO STATE)

ABSTRACT This research project examined the effect of a good accounting system on fraud prevention in small-scale businesses, with specific reference to ABC Transport Company, Owerri. The study was motivated by the increasing rate of fraudulent practices in small-scale enterprises and the need to understand how an effective accounting framework can curb these occurrences. The research adopted a descriptive survey design, and data were collected through structured questionnaires administered to staff of Apex Water. The analysis was conducted using regression techniques to determine the relationship between accounting system effectiveness and fraud prevention. Findings revealed that a good accounting system significantly contributes to the reduction and prevention of fraud. Key elements such as internal controls, proper record-keeping, segregation of duties, and periodic audits were identified as essential tools for promoting transparency and accountability. The study concludes that small-scale businesses that implement effective accounting systems are more likely to detect, prevent, and mitigate fraudulent activities. It is recommended that small-scale enterprises invest in developing sound accounting systems, train staff on fraud awareness, and conduct regular financial audits to strengthen internal controls and ensure business sustainability.