Internal Control Systems and Fraud Prevention in State-Owned Enterprises in Enugu State

This study assesses the effectiveness of internal control systems in preventing fraud within state-owned enterprises in Enugu State, Nigeria. Fraud in public sector organisations continues to undermine service delivery, erode public trust, and deplete government resources. The Committee of Sponsoring Organisations framework and Nigeria's Public Procurement Act provide guidance on internal control implementation, yet fraud incidences remain prevalent in many government-owned enterprises. This study examines five components of internal controls, namely control environment, risk assessment, control activities, information and communication, and monitoring, and evaluates their combined effect on fraud prevention. A descriptive survey design is employed, and primary data are collected through structured questionnaires administered to 200 accounting and finance officers in selected state enterprises. Data are analysed using frequency tables, mean scores, and multiple regression analysis. The study expects to find that robust control environments and regular monitoring activities are the most significant predictors of reduced fraud incidences. Findings will offer policy recommendations for the Enugu State government and enterprise boards on strengthening governance mechanisms. This research contributes to the South East geopolitical zone's public sector governance literature and complements recent calls by the Fiscal Responsibility Commission for improved accountability in government enterprises. Keywords: internal control, fraud prevention, state-owned enterprises, public sector, Enugu State.