ABSTRACT

The purpose of the study was to establish the relationship between internal control systems (JCS) andfraud prevention infinancial  institutions.  Internal control systems (JCS)was analyzed based on its component which include;  internal control and internal auditing. The Researcher set out to establish how internal  control systems  (JCS) could be used  to control fraud  in financial institutions. The researcher set study objectives and hypotheses that assisted in establishing the relationship  sort.    The  research  was  conducted  using  both  quantitative  and  qualitative approaches using random  sampling,  ANOVA  and Descriptive  Research  Designs.   Data was collected using Questionnaires from the audit department, finance department, legal department, staff department and premises department of First bank of Nigeria pie area office at Enugu. A sample of 3 6 respondents from  a population of 40 was used for  this study. Data was analyzed using the  Statistical Package for  Social Scientists  (SPSS) and conclusions were drawn from tables and figures  derived from the Package.  For the acceleration of banking development in Nigeria,  there should be a sound basis for  internal control system (JCS), this implies that the system should  be  appropriate, adequate,   and  effective.   The study  established  a significant relationship between JCS and fraud prevention. The researcher recommends that banks should ensure that effective internal control system is guaranteed, also managers and directors of banks should constantly evaluate the internal control system in order to detect fraudulent practices which have the capacity ofjeopardizing  the future of the bank. The study also recommends that Managers and Directors  of banks should ensure  recruitment of professionals  in the field  of banking and proper  maintenance of open and closed account registers.  Also,  Managers and Directors of banks should ensure  strict control on the movement   of ledger card and books of account.