Assessment of Internal Control System Effectiveness in Fraud Prevention The Case of Commercial Bank of Ethiopia (CBE)

Abstract

The main purpose of the study was to examine the effectiveness of internal control system in fraud prevention in the case of commercial Bank of Ethiopian. This research was used descriptive statics technique. The data was gathered from primary sources through the use of structured questionnaires. The total population is 219 employees’ individuals who work at Commercial Bank of Ethiopia under head office, districts in Addis Ababa and branches. Purposive sampling method was employed to draw the sample from the population. The components of the internal control system (Control environment, risk assessment, control activities, information and communication and monitoring activities) are effective in addressing or alleviating and preventing the frequent occurrence of fraud in commercial bank of Ethiopia. The findings of the study were that commercial bank of Ethiopian has internal control practice by in terms of control environment, risk assessment, information and monitoring, control activity and monitoring. The bank was in good/high extent practice of internal control. The study points out that CBE is in a good condition on providing information to their employees through wellorganized mechanisms. The forwarded recommendations was the bank needs to needs to undertake a periodic assessment practice,needs to produce qualified employees by availing training and workshop to the internal control staff.