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A Critical Review of Fraud Prevention Mechanisms and Financial Oversight Effectiveness in Public School System


Authors : Emmanuel Oyovwedjebre Ebah; Ojike Chinyere Perpetua; Patience Ndidi Utulu; Winifred Ezinwanne Ashibogwu; Josephine O. Nnachi

Volume/Issue : Volume 11 - 2026, Issue 7 - July

Google Scholar : https://tinyurl.com/57upk8eu

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DOI : https://doi.org/10.38124/ijisrt/26jul1566

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Abstract : Fraud and financial mismanagement continue to undermine the efficient utilization of public resources in educational institutions, particularly within public school systems in developing economies. This study critically reviews contemporary fraud prevention mechanisms and evaluates the effectiveness of financial oversight practices in promoting accountability, transparency, and prudent resource management in public schools. Drawing evidence from twenty-four recent empirical and theoretical studies, the review synthesizes findings on internal control systems, forensic accounting, audit committees, governance structures, and emerging technological innovations such as artificial intelligence (AI), blockchain technology, and machine learning. The review adopts a qualitative critical review approach to examine how these mechanisms contribute to fraud detection, prevention, and financial accountability. Evidence from Nigeria, South Africa, Indonesia, Kenya, and other jurisdictions indicates that robust internal controls, effective audit systems, transparent financial reporting, and technology-enabled oversight significantly reduce opportunities for financial fraud. However, challenges including weak institutional capacity, inadequate governance, political interference, limited technological infrastructure, and insufficient staff training continue to constrain effective implementation. The review further argues that technological innovations alone cannot eliminate fraud without complementary governance reforms and stakeholder commitment. The study concludes that an integrated financial oversight framework combining sound governance, internal control mechanisms, continuous auditing, forensic accounting, and digital financial monitoring provides the most sustainable approach to fraud prevention in public school systems. The paper recommends strengthening institutional accountability, expanding the adoption of digital financial management systems, enhancing professional capacity building, and reinforcing policy implementation to improve financial integrity and educational service delivery.

Keywords : Fraud Prevention, Financial Oversight, Internal Control, Public School System, Forensic Accounting, Artificial Intelligence, Financial Accountability.

References :

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Fraud and financial mismanagement continue to undermine the efficient utilization of public resources in educational institutions, particularly within public school systems in developing economies. This study critically reviews contemporary fraud prevention mechanisms and evaluates the effectiveness of financial oversight practices in promoting accountability, transparency, and prudent resource management in public schools. Drawing evidence from twenty-four recent empirical and theoretical studies, the review synthesizes findings on internal control systems, forensic accounting, audit committees, governance structures, and emerging technological innovations such as artificial intelligence (AI), blockchain technology, and machine learning. The review adopts a qualitative critical review approach to examine how these mechanisms contribute to fraud detection, prevention, and financial accountability. Evidence from Nigeria, South Africa, Indonesia, Kenya, and other jurisdictions indicates that robust internal controls, effective audit systems, transparent financial reporting, and technology-enabled oversight significantly reduce opportunities for financial fraud. However, challenges including weak institutional capacity, inadequate governance, political interference, limited technological infrastructure, and insufficient staff training continue to constrain effective implementation. The review further argues that technological innovations alone cannot eliminate fraud without complementary governance reforms and stakeholder commitment. The study concludes that an integrated financial oversight framework combining sound governance, internal control mechanisms, continuous auditing, forensic accounting, and digital financial monitoring provides the most sustainable approach to fraud prevention in public school systems. The paper recommends strengthening institutional accountability, expanding the adoption of digital financial management systems, enhancing professional capacity building, and reinforcing policy implementation to improve financial integrity and educational service delivery.

Keywords : Fraud Prevention, Financial Oversight, Internal Control, Public School System, Forensic Accounting, Artificial Intelligence, Financial Accountability.

Paper Submission Last Date
31 - August - 2026

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