INTERNAL CONTROL AND FRAUD PREVENTION

This study investigates the ef ect of internal control mechanisms on fraud preventionamonglisted companies in Nigeria, focusing on four components of the COSOframework: controlenvironment, risk assessment, information and communication, and monitoring. Adescriptive survey research design was adopted, and data were collectedfrom384respondents across listed firms in Edo State using a structured questionnaire. Descriptivestatistics, correlation analysis, variance inflation factor (VIF) tests, and multiple regressionanalysis were employed to examine the relationships between the independent variablesandthe dependent variable. The findings revealed that control environment, risk assessment,information and communication, and monitoring each had significant positive ef ectsonfraud prevention, with all variables collectively explaining 57.2%of the variationinfraudprevention outcomes. These results underscore that strong ethical leadership, systematicriskidentification, transparent communication, and continuous monitoring significantlyenhancefraud deterrence. The findings align with Agency Theory, which emphasises theroleofgovernance structures in mitigating opportunistic behaviour, and with DeterrenceTheory,which highlights the importance of certainty and consistency in discouraging fraud. SocialNorms Theory also provides complementary insights, showing that awareness andsharedvalues foster compliance with anti-fraud practices. The study concludes that internal controlsare not merely regulatory requirements but strategic mechanisms that safeguardcorporateassets and promote stakeholder trust. It recommends that listed companies strengthenethicalstandards, integrate risk assessment frameworks, enhance whistleblowing andreportingsystems, and adopt technology-enabled monitoring to improve fraud prevention. Regulatorsare encouraged to intensify oversight and ensure compliance with internal control standards