THE ROLE OF INTERNAL CONTROL MECHANISMS IN CURTAILING FRAUD AND EMBEZZLEMENT IN ORGANIZATIONS (A CASE STUDY OF NEW JUABEN SOUTH MUNICIPAL ASSEMBLY (NJSMA))

Abstract

Managers can increase accountability for their programs while receiving a reasonable level of assurance that the programs they oversee achieve their stated objectives and goals by implementing an effective internal control mechanism. The study was guided by these specific objectives; to identify the various internal control mechanisms available in the New Juaben South Municipal Assembly; and to evaluate how these internal control mechanisms are used in curtailing fraud and embezzlement at New Juaben South Municipal Assembly. The target population for this study, which employed a descriptive research design, consisted of 108 employees who were split into four homogenous subgroups: the Finance and Accounting Department, the Revenue Department, the Procurement Department, and the ICT Department. The majority of NJSMA funds are managed by these divisions. Purposive sampling was utilized to ensure that each staff member participating in the study had an equal probability of success. Open-ended and closed-ended questions were included in the structured and semi-structured questionnaires that were used to gather the primary data. Each question had a number assigned to it, and the answers were formatted to produce results. Tables, frequencies, and percentages were used to present the data. The NJSMA's current internal control and risk assessment processes are insufficient to stop fraud from happening. Based on the findings, it was suggested that the internal control mechanism be utilized on a regular basis to be certain that fraud in any kind is kept to a bare minimum; Annual financial reports should be kept and publicized; and the study recommends segregation of duties. Additionally, other researchers can examine how internal control mechanisms affect the company's financial management and the extent to which internal and external auditors' recommendations are put into practice with regard to controls.