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The Effect of Internal Control Mechanism Towards Fraud Prevention in Small and Medium Enterprises

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Effective internal control mechanisms reduce fraud occurrences among employees in SMEs, promoting ethical behavior.
Regression analysis demonstrated that control environment and monitoring activities are crucial in mitigating fraud risks.
The study employed a quantitative approach, collecting data through questionnaires from 131 SME owners across various sectors.
Findings underscore the importance of assessing and enhancing internal controls to safeguard SMEs against fraudulent activities.

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Quantitative analysis reveals internal controls significantly enhance fraud prevention in SMEs, suggesting a robust framework is crucial.

Azizan et al. (2024) studied this question.

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