Evaluation of value for money audit, as a tool for fraud control in the public sector

Project Abstract

Value for Money (VFM) audit is a critical instrument for enhancing transparency, accountability, and fraud control in the public sector. This research project aims to evaluate the effectiveness of VFM audit as a tool for combating fraud within government agencies. The study will focus on how VFM audit can contribute to identifying potential fraud risks, improving efficiency in public sector operations, and ensuring that government resources are utilized effectively. The research will employ a mixed-methods approach, combining quantitative data analysis with qualitative case studies to provide a comprehensive evaluation of the impact of VFM audit on fraud prevention and detection. The quantitative analysis will involve examining the correlation between the frequency of VFM audits conducted and the incidence of fraud cases reported within the public sector. This analysis will help determine whether there is a significant relationship between the implementation of VFM audit practices and the reduction of fraudulent activities. Additionally, the qualitative case studies will involve interviewing key stakeholders, including government auditors, financial officers, and anti-fraud experts, to gather insights on the challenges and opportunities associated with using VFM audit as a fraud control mechanism. By exploring real-world examples of how VFM audit has been utilized to uncover fraud schemes and improve governance practices, this research aims to provide practical recommendations for enhancing the effectiveness of VFM audit in the public sector. The findings of this study are expected to contribute to the existing literature on fraud control and public sector accountability by shedding light on the role of VFM audit in mitigating fraud risks. The research outcomes will be valuable for policymakers, auditors, and other stakeholders involved in governance and oversight functions within government agencies. Ultimately, the goal of this research project is to provide evidence-based insights that can inform the development of strategies and policies aimed at strengthening fraud control mechanisms in the public sector and promoting good governance practices.

Project Overview

<p> </p><p><strong>1.1 BACKGROUND OF THE STUDY</strong></p><p>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.</p><p>(BRIEF REVIEW OF THE FIRM, POWER HOLDING COMPANY OF NIGERIA, P H C N)</p> <br><p></p>