Evaluate Audit as a Tool for Fraud Prevention in the Public Sector Taking Electricity Company of Ghana

UNIVERSITY OF EDUCATION, WINNEBA

COLLEGE OF TECHNOLOGY EDUCATION, KUMASI  

FACULTY OF BUSINESS EDUCATION

DEPARTMENT OF ACCOUNTING STUDIES EDUCATION

EVALUATION OF AUDIT AS A TOOL IN FRAUD CONTROL IN PUBLIC SECTOR; A STUDY OF ELECTRICITY COMPANY OF GHANA (ECG)

KUUPOL DANIEL

MAY, 2017

EVALUATION OF AUDIT AS A TOOL IN FRAUD CONTROL IN PUBLIC SECTOR; A STUDY OF ELECTRICITY COMPANY OF GHANA  (ECG)

A RESEARCH WORK PRESENTED TO THE UNIVERSITY OF EDUCATION, WINNEBA –KUMASI IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF A DEGREE IN BACHELOR OF SCIENCE ADMINISTRATION (ACCOUNTING)  

                          KUUPOL DANIEL

5131340011

MAY, 2017

STUDENT’S DECLARATION

I hereby declare that this submission is my own original work to the best of my knowledge and it contains no material previously published by another degree holder in this university or elsewhere except where due acknowledgement in the text.

SIGNATURE………………………        DATE :……………………………

 KUUPOL DANIEL

SUPERVISOR’S DECLARATION

I hereby declare that the preparation and presentation of this Action Research  work was supervised in accordance with guidelines and supervision of project work laid down by the University of Education, Winneba .

SIGNATURE………………………                DATE……………………………

MR. EFFAH SARKODIE ERIC

DEDICATION

I dedicate this work to my mum, Getrude Kuupol

ACKNOWLEDGEMENT

I acknowledge the efforts and directions given to me during my research activities by my wonderful supervisor Mr. Eric Effah Sarkodie. I am also indebted to my friend Mr. Acheampong Peter.

ABSTRACT

The purpose of this study was to evaluate audit as a tool for fraud prevention in the public sector taking Electricity Company of Ghana (ECG) as a case study. The objectives of the study were: to identify the causes of fraud at ECG, to identify the role auditors play in the detection and prevention of fraud at ECG and to identify the challenges faced by auditors in prevention of fraud at ECG. The target population for this study comprised all staff of the Electricity Company of Ghana. The sample for the study was 40.  The research instrument used was questionnaire. The study revealed that fraud is prevalent at all levels of the organizational management, the study also revealed that weak internal control systems at ECG was the chief among the possible causes of fraud in the institution and finally, it was found that auditors do not get access to all necessary documents to make them perform their duties effectively at ECG. The study recommended that the management of ECG should take prudent measures to improve upon the internal control systems of ECG to help curb fraud at all levels of management.

TABLE OF CONTENT

Table of Contents

STUDENT’S DECLARATION        ii

SUPERVISOR’S DECLARATION        ii

DEDICATION        ii

ACKNOWLEDGEMENTS        ii

ABSTRACT        ii

TABLE OF CONTENT        ii

LIST OF TABLES…………………………………..……………………………………xi

CHAPTER ONE: INTRODUCTION        2

1.1 Background of the Study        2

1.2 Statement of the Problem        2

1.3 Objectives of the Study        2

1.4 Research Questions        2

1.5 Significance of the Study        2

1.6 Scope of the Study        2

1.7 Limitation of the Study        2

1.8 Organization of the Study        2

CHAPTER TWO: LITERATURE REVIEW        2

2.0 Introduction        2

2.1 Definition of Audit        2

2.2 Types of Audit        2

2.2.1 Internal Audit        2

2.2.2 External Audit        2

2.3.1 Independent Auditing Standards        2

2.3.2 The External Auditing Process        2

2.4 The Audit Report        2

2.5 Fraud        2

2.5.1 Detection of Fraud        2

2.6 Auditors’ Responsibilities in Fraud Detection        2

2.7 Tools Used by Auditors in Detecting and Preventing Fraud        2

2.8 Causes of Fraud        2

2.8.1 Institutional Factors        2

2.8.2 Environmental/Social Factors        2

CHAPTER THREE: METHODOLOGY OF THE STUDY        2

3.0 Introduction        2

3.1 Study Design        2

3.2 Data Source        2

3.3 Population of the Study        2

3.4 Study Sample Size and Sampling Technique        2

3.5 Study Instruments        2

3.6 Reliability and Validity of the Study        2

3.7 Data Analysis and Interpretation        2

3.8 Ethical Consideration        2

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS        2