Internal Control and Fraud Prevention in the Ghanaian Local Government Service

Abstract

This study investigated the relationship between internal control and fraud prevention in the local government sector. Primary data was collected from 35 local government institutions in Ghana through questionnaire. The study employed multiple regression analysis. The study revealed that risk assessment and information technology significantly deter fraud. Control environment, control activities, monitoring and information communication had no significant influence on fraud prevention even though they all had positive effect on fraud prevention. The study found further that poor background checks, monitoring and inaccurate records were some of the major challenges facing internal control in the local government sector.  Staff were the worst culprit of fraud in the local government sector. The study thus recommend that, proper checks on all employees should be carried out before employment is given and information technology should be deployed in local government service to enhance efficiency and reduce fraud.

Keywords: Internal Control, Fraud Prevention, Ghanaian Local Government Service