Internal Audit Practices, Management Controls and Fraud Prevention among Public Technical and Vocational Education and Training Institutions in Nairobi Metropolitan Area, Kenya

This study examined the effect of internal audit practices and management controls on fraud prevention among public Technical and Vocational Education and Training institutions in the Nairobi Metropolitan Area, where persistent financial mismanagement raises concerns about audit effectiveness using a descriptive research design. The study targeted 141 institutions, with 103 heads of internal audit as respondents. Primary data were collected using structured questionnaires that satisfied validity and reliability requirements. Data were analyzed using correlation and multiple regression analyses. Results from the study, which was anchored on Agency Theory, Fraud Triangle Theory, and Institutional Theory, show strong positive associations between fraud prevention and internal control systems, management controls, and internal audit IT adoption. Regression results indicate that internal audit IT adoption is the most influential predictor of fraud prevention, followed by internal control systems, both of which are statistically significant. The model explains a substantial proportion of variation in fraud prevention. The moderating effect of board oversight is not statistically significant. The study concludes that strengthening internal audit systems, particularly through digital audit adoption and robust internal controls, significantly enhances fraud prevention in public TVET institutions. Management controls further reinforce accountability.