The impact of internal control practices on minimizing fraud in companies

Abstract

Internal control structures are a collection of protocols and regulations that protect an organization's properties, minimizing possibilities for theft and maintaining an organization's potential. For an entity to operate, considerations must be identified to guarantee the organization's smooth functioning like materials, machinery, cash, etc. Certain associations were misled by their members and consumers. This methodology concerns quantitative evidence, as the name implies. There is a range of agreed methodological criteria for the method's feasibility, such as the number of respondents needed for statistically important outcomes. The quantitative method will be implemented to study employees' points of view in the workplace to internal control practices. It will measure the employee’s opinion based on a Likert scale ranging from 1 representing strongly agree to 5 representing strongly disagree. Failure to comply with internal controls is one of the key obstacles to producing good financial performance in companies. While there have been many initiatives in environmental regulation and regulations and internal auditing, a firm's financial success has seen nothing in corporate governance and government policy. Therefore, the relationship between internal control systems and the financial performance of entities must be defined. The research ends with the significant predictors of financial success that involve control setting, internal audit feature, risk reduction, control practices, and corporate governance. The research found that companies that provide effective frameworks for internal control depend on positive financial performance and investment valuation. Failure to respect internal controls is one of the main barriers to successful business success.