The Effectiveness of internal controls in unearthing fraud in financial institutions in Zimbabwe. A Survey of financial institutions in Harare CBD. (2025-2026)

Abstract

This study is on the effectiveness of internal controls in unearthing fraud in the financial institutions, a survey of Harare central business district. It was informed by the following objectives; to identify the types of internal control mechanisms currently implemented by the financial institutions domicile in Harare central business district; to evaluate the extent to which these internal controls detect common fraud schemes; to determine the challenges that limit the effectiveness of internal controls in detecting fraud and to recommend the adoption of effective strategies. The study population was 120 were a sample of 92 was deduced using purposive sampling techniques. Data was gathered using questionnaires and interview guides. The data was analyzed using Atlas ti , Microsoft excel and SPSS version 27 for rating The results from the analysis was presented using tables, pie charts and bar graphs. From the study it was found that the most common fraud types identified are asset misappropriation and financial statement fraud, followed by cyber‑enabled fraud and Key internal control weaknesses include insufficient technological tools, inadequate staff fraud training, management override, employee collusion, and siloed information systems. It was concluded that while internal controls partially detect fraud, significant gaps in technology, resources, and oversight remain, and from the conclusions of the study it is recommended that multi-factor authentication, real-time transaction monitoring, regular fraud training, and inter-institutional intelligence sharing.