Effect of Value for Money Audit on Fraud Prevention in the Nigerian Public Sector

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Effect of Value for Money Audit on Fraud Prevention in the Nigerian Public Sector

Abstract

Increasing concern and awareness of government activities by its citizens brought about the widening of the scope of governmental auditing over the years by the demand for independent verification of information to the extent that it can no longer be limited to the audit of financial operation, but value for money audit which ensures that the activities and programs are carried out at low cost and high standard. The study examined the effect of value for money audit on fraud prevention in the Nigeria public sector. Lack of fraud preventive measuresput in place in the public sector affect the overall achievement of goals by the managers in the public sector brought the need of this paper. The specific objectives were the aim was to ascertain whether government auditing achieves the purposes for which programs are authorizes and funds released economically and efficiently in accordance with applicable law and regulations and to find out whether in the process if value for money audit have any effect on fraud prevention in the Nigeria public sector. A study and survey of previous works was carried out, it was found that value for money audit play a vital role in promoting the effectiveness and efficiency of activities in the public sector, therefore helps in fraud prevention. There is a significant effect of the value for money audit in fraud Prevention, detection and control in public sector. Value for money audit plays a vital role in promoting the effectiveness and efficiency of activities in the public sectors. Fraud in the public sector is reduced drastically through efficient operation of audit roles. The study recommends that value for money audit should be mandatory requirement under statutes in all public sector organisations because of its effect in fraud prevention. It also recommend that government should support the implementation of policies formulated to enhance value for money audit in the public sector.

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