Influence of Audit on Fraud Mitigation in Public Procurement: A Case Study of Federal University of Health Sciences Otukpo, Benue State, Nigeria

Abstract

This study examines Procurement audit as a tool on fraud mitigation in public procurement, using the Federal University of Health Sciences, Otukpo (FUHSO) as a case study. Public procurement processes in Nigeria are often vulnerable to financial irregularities, contract inflation, and unethical practices that undermine compliance, transparency and accountability. The Procurement audit function serves as a vital mechanism for ensuring compliance, detecting irregularities, and promoting sound governance within public institutions. The report adopted a descriptive survey design, utilizing both primary and secondary data. Questionnaires were administered to staff of the Procurement Audit Unit, Procurement Department, Bursary Department, and Administrative Units directly involved in procurement processes at FUHSO. The collected data were analyzed using descriptive statistics, inferential techniques and regression analysis to determine the relationship between Procurement audit and fraud mitigation in procurement activities. Findings from the administered questionnaires revealed that Procurement audit significantly contributes to fraud detection, prevention, and control within procurement operations. However, its effectiveness is often hindered by challenges such as limited independence, inadequate resources, poor management support, and restricted access to procurement records. The study also found that timely implementation of audit recommendations and continuous capacity developments of Procurement auditors enhance fraud mitigation outcomes. The study concludes that a robust Procurement audit system is indispensable for promoting compliance, accountability, transparency, and integrity in public procurement. The study recommends that FUHSO and similar institutions strengthen Higher Education Institution Procurement audit functions through autonomy enhancement, adequate funding, and compliance enforcement. Additionally, there is a need for continuous procurement audit engagement in procurement planning, execution, and monitoring to minimize fraud risks and ensure value for money in public expenditure.