Internal Control: Its Role in the Reduction of Fraud and Professional Misconduct among SMEs

What is it about?

The issue of fraud and professional misconduct is a challenge to many organizations. However, the small-scale and medium-scale enterprises (SMEs) are more vulnerable. This study evaluates the role of internal control in the reduction of fraud and professional misconduct among SMEs in the Enugu metropolis. This study adopted survey research design. The research made the following major findings: that internal controls are put in place by SMEs, that internal controls are adhered to in SMEs, and that the internal controls implemented are effective in curbing fraud and professional misconduct in SMEs. Hence, the research recommend that owners and managers of SMEs should evaluate existing internal control systems and continue to implement good internal controls and ensure that proper financial records are kept and statements are prepared periodically, and small scale enterprises that do not have internal controls should establish such and implement them to curb fraud and professional misconduct and thereby improve efficiency of operations.

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Why is it important?

It is important to understand the implication of weak internal control systems in the management of fraud and professional misconduct, which have a significant influence in the survival of SMEs