Abstract : Financial fraud is a leading threat to all corporations globally. Corporate organizations' Internal Control Systems (ICS) provide the primary defense mechanism for protecting assets, providing reliable financial information and deterring fraudulent activity. The objective of this paper is to evaluate the success of ICS in deterring financial fraud in corporate organizations. Using various financial models, statistical tools such as ratio analysis, correlation analysis, regression analysis, fraud risk score and variance analysis have been used to collect data from sample corporate organizations using both their financial statements and structured surveys. Stronger ICSs are shown to significantly decrease fraud risks and increase the reliability of financial reports. The results also demonstrate the significance of internal auditing, segregation of duties, monitoring and adherence to compliance programs in reducing the incidence of financial fraud. It has also been concluded by this study that corporate organizations utilizing robust internal control structures will experience fewer occurrences of financial fraud than those without.
Cite : Joshi, A. B. (2026). Evaluating The Effectiveness Of Internal Controls In Preventing Financial Fraud In Corporate Organizations (1st ed., pp. 97-107). Noble Science Press. https://noblesciencepress.org/chapter/nspebeparddias2026ch-11
References :
COSO Internal Control Framework Reports
Corporate Fraud Prevention Guidelines
Financial Accounting and Auditing Standards Publications
Corporate Governance and Risk Management Journals
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