Effect of Financial Control System on Fraud Prevention in the Nigerian Public Sector

Abstract

The study broadly examined the impact of Financial Control System in Transmission Company of Nigeria (TCN). Specifically, the study examined the extent to which communication, control activities, and effective monitoring impact on Transmission Company of Nigeria.The population of study was the entire staff of TCN in Nigeria. The sample population was the staff of accounts Department of TCN in the South-Southern and South-Eastern regions of Nigeria. The study adopted the descriptive research design using the questionnaire as the research instrument for data generation. Data generated from the research instrument was used for the analysis of the study. The analytical technique used in the study was the descriptive statistics and the econometric approach. Our findings showed that Communication and effective monitoring have a strong positive impact on the Transmission Company of Nigeria.However, our findings also showed that control activity has no significant effect on improvement in the government sector.It was recommended that focus should be on the use of less forceful and very subtle ways of achieving financial control by government. Human relations activities should always be a key factor in carrying out public sector accounting and financial control functions. Also, communication channels and monitoring activities should be improved on in the public sector. Finally, there should be adequate financing of public sector firms in general.