The Role of Internal Audit Unit in Fraud Prevention in Government Owned Hospitals in a Nigerian Setting

Abstract

A lot of attention has been given to the health sector both by the government and the private operators yet they seem not to meet expectation demanded of them particularly the government owned hospital due to excesses in financial administration. A weak internal control cannot provide sufficient accounting information to safeguard the assets and ensure effective and efficient operation. This study was therefore designed to assess the role of internal audit in fraud prevention in state government owned Hospitals in Kogi state of Nigeria. Four hypotheses were formulated in their null form as well as three research questions to guide the study. The study utilized the survey research design and data were generated through the questionnaire administered to the randomly selected respondents. Stratified random sampling was used. Data collected were analyzed using the non-parametric statistical tool that is the chi-square and the descriptive statistics. The SSPS version 15 was used in the computation of the data collected. The study revealed that the Internal Audit Unit of the hospitals are aware of their role to prevent fraud and are making a way forward by tracing and halting fraud but lack the basic knowledge needed to practically prevent fraud. It also revealed that there is cooperation between the audit staffs and staffs of other departments in provision of necessary documents although Chief Medical Directors (CMDs) strives to interfere in the operational activities of the internal audit unit. Therefore the role of the unit on fraud prevention is weak.