IMPLICATIONS OF INTERNAL CONTROL SYSTEMS FOR FRAUD PREVENTION IN THE PUBLIC SECTOR
Abstract
Internal Control System is an important component in maintaining integrity, accountability, and transparency in the public sector. This system is designed to reduce the risk of fraud, such as corruption, data manipulation, and misuse of state assets, through a series of structured monitoring and control mechanisms. Internal Control System has several key elements, such as The following factors cooperate to stop fraud: Risk assessment, information and communication, control actions, monitoring, and the control environment. The creation of a robust internal control system within the public sector can identify potential fraud risks early on, tighten supervision of budget use, and ensure that every decision and action taken by government agencies is in accordance with applicable regulations. However, the challenges in implementing Internal Control System in the public sector are still quite large. By analyzing various case studies and related literature, it is hoped that this study can provide a clearer picture of how the One practical way to reduce the risk of fraud is to build an efficient internal control system. Furthermore, this study emphasizes how important it is to continuously evaluate and enhance the Internal Control System in order to maintain its effectiveness in facing dynamic challenges in the public sector.
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