Thesis Abstract

Abstract
Value for money (VFM) audit is a critical tool in assessing the efficiency and effectiveness of public sector organizations. In the realm of fraud control, VFM audit plays a crucial role in identifying potential areas of mismanagement, waste, and fraudulent activities. This research project aims to evaluate the effectiveness of VFM audit as a tool for fraud control in the public sector. The study will utilize a mixed-methods approach, incorporating both quantitative and qualitative data analysis methods. Quantitative analysis will involve examining financial records, budgets, and expenditure reports to identify irregularities and potential fraud indicators. Qualitative analysis will include interviews with key stakeholders such as auditors, government officials, and employees to gain insights into the challenges and successes of implementing VFM audit practices. One of the key objectives of this research is to assess the impact of VFM audit on fraud prevention and detection. By analyzing past audit reports and fraud cases, the study aims to determine the extent to which VFM audit has been successful in uncovering fraudulent activities and preventing future occurrences. Additionally, the research will investigate the factors that contribute to the effectiveness or ineffectiveness of VFM audit in fraud control. Another important aspect of this study is to evaluate the cost-effectiveness of VFM audit compared to the benefits derived from fraud prevention. By analyzing the resources allocated to VFM audit activities and comparing them to the financial losses incurred due to fraud, the research aims to provide insights into the value proposition of VFM audit in the public sector. The findings of this research project are expected to contribute to the existing body of knowledge on fraud control and VFM audit in the public sector. By identifying best practices and areas for improvement, this study aims to provide practical recommendations for enhancing the use of VFM audit as a tool for fraud control. Ultimately, the goal is to help public sector organizations strengthen their internal controls and reduce the risk of financial mismanagement and fraudulent activities.

Thesis Overview

1.1 BACKGROUND OF THE STUDY

Every sector of the economy both the private and the public sector has its own objectives and goals to achieve. For the public sector of the economy, their goal is to satisfy the social needs of the citizens and in the effort to achieve these purposes, auditing more often, play a vital role. The size and scope of these sectors have sometimes made it clear for the executor to exercise personal and first hand supervision of operation. It is in this light that value for money audit established by management is initiated, for any organization to carry out its business efficiently and effectively, there must be some factors that must be put in place for the smooth running of the organization like materials, machines, human labor and money e. t. c. Auditing is seen to play an intermediary function in between management and the resources of the organization. It is also fundamental to any business either the public or private sector, which will help the business to keep its adequate financial records. These financial records are kept in response to the demand by a system control which requires that the business enterprise must be carried out in an orderly manner, ensure adherence to management policies, safe guard the assets and secure possibly the completeness and accuracy of the records. Irrespective of these facts of system of control established by the management of the organization, fraud still thrives. In the early 1970s, the role of the state auditors began to change dramatically. Changes began in USA, Canada, and in several European countries. The representative of the people started demanding information on the efficiency and effectiveness of public expenditure. In Nigeria no specific legislation has been put in place to empower auditors to carryout value for money audit. However, the 1999 constitution section 88 (2) empowered both the two federal house and the state house of assembly to conduct investigation to expose corruption, inefficiency or waste on the execution or administration of law within the legislative competence and in the disbursement or administration of fraud appropriated by it. Therefore, fraud control has become increasingly important to managers of various governments in an organization. In general, financial statements fraud has always weakened investors’ confidence in both private and public sector investment. This is because 1 fraud against an organization reduces the net income by 1 and services to be provided to people in the case of public sector. However, value for money audit will be wildly concerned with the economy and efficiency of an organization and the effectiveness of achieving its desired objective thereby controlling fraud to evaluate the effectiveness of the internal control system within the organization.

(BRIEF REVIEW OF THE FIRM, POWER HOLDING COMPANY OF NIGERIA, P H C N)