This study investigates the impact of technology adoption on the effectiveness of internal control systems and fraud detection mechanisms within SMEs in Ibadan North Local Government, Oyo State, Nigeria. Adopting a descriptive survey research design, the study draws on a sample of 356 SMEs from a population of 3,200 registered SMEs selected through stratified random sampling. Data were collected using structured questionnaires and analyzed using descriptive and inferential statistics, including regression analysis. The findings reveal a statistically significant positive relationship between technology adoption and internal control system effectiveness (R = 0.674, R² = 0.454, p = 0.000). Specifically, SMEs utilizing digital tools, such as computerized accounting software, electronic audit trails, real-time monitoring platforms, and cybersecurity measures, demonstrated enhanced financial transparency, reduced human error, and improved fraud detection capabilities. The study further highlights that technology adoption strengthens real-time monitoring, increases fraud detection rates, and reduces financial losses. Empirical and theoretical reviews underscore the role of digital tools, such as cloud-based systems, artificial intelligence (AI)-driven analytics, and blockchain technology, in fortifying internal controls and mitigating fraud risks. The research concludes that technology adoption is not merely an operational upgrade but a strategic imperative for SMEs to ensure financial integrity, regulatory compliance, and sustainable growth in increasingly digitalized economies. Targeted training programs, government-supported digital incentives, and the adoption of integrated, scalable fraud detection technologies are recommended
Oyedokun et al. (2025) studied this question.