FRAUD PREVENTION IN ENTERPRISE RISK MANAGEMENT OF CORPORATE ORGANIZATIONS IN NIGERIA

Nwadighoha Chinedum Ephraim

Department of Accounting,

Michael Okpara University of Agriculture Umudike, Abia State Nigeria

Email: chinedumnwadighoha@yahoo.com

ABSTRACT

In the absence of workable internal control measures, the tendency of fraud prevention, detection and corrective measures become an inevitable process in any organization. Consequently, the study investigated fraud detection and enterprises risk management of corporate organizations in Nigeria. A population and sample size of one hundred and nine (109) corporate organizations in Nigeria were chosen for the study. Ordinary Least Square Regression analysis was used to test the hypotheses and the findings revealed that weak internal control measures would make it difficult for indices of fraud to be prevented and the cost of its investigation, detection and corrective measures may not be justified as it would not be commensurate with the amount lost and the image of the organizations being put in a bad light. It was therefore, recommended that control and workable internal control measures if put in place, would forestall the employees and the management from committing fraud and the prosecution and litigation cost will be greatly minimized or completely eliminated from the financial statements of such corporate originations in Nigeria. 

Keywords: Fraud Prevention, Detection, Corrective Control, and Enterprise Risk Management