EFFECTIVENESS OF INTERNAL CONTROL SYSTEMS ON FRAUD PREVENTION AMONG STATE CORPORATIONS IN KENYA: A CASE OF KENYA PIPELINE COMPANY
Abstract
Effective internal control system can play a very crucial role in every organization to realize organizational goals, one of which is achieving financial performance objectives. An effective internal control system should be able to provide managers with the means to increase accountability for their programs and to obtain reasonable assurance that the programs they direct meet established goals and objectives. However, an effective system is not only restricted to a digital one but to one that is able to prevent and detect fraudulent activities. Internal control is one of the vital tools used to control use of financial resources, safeguard of assets and to checkmate incident of fraud, irregularities in every organization. The study used a descriptive design to shed more light on the effectiveness of internal control systems in government parastatals in Kenya. It was found from the findings that segregation of duties is a key internal control systems component that influence effectiveness of Kenya pipeline company and recommend that the management should emphasize and train members of staff of their significance, It was also quite interesting that few studies that had been done on internal control effectiveness had been skewed to financial performance, therefore the researcher suggested that more studies can be done in the public sector and lay emphasis on government parastatals.
Key Words: Segregation of Duties, Kenya Pipeline Company, Internal Controls
CITATION: Ong’are, O. D., & Njeru, A. (2022). Effectiveness of internal control systems on fraud prevention among state corporations in Kenya: a case of Kenya Pipeline Company. The Strategic Journal of Business & Change Management, 9 (4), 948 – 961.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2465
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