Journal of African Development

This study examines the role of Management Accounting Control Systems (MACS) in mitigating fraud risk and strengthening organizational resilience within financial institutions. The primary objective is to empirically investigate how key fraud risk management mechanisms risk assessment practices, internal controls and continuous monitoring, fraud investigation and response strategies, and regulatory compliance frameworks contribute to organizational resilience, while assessing the moderating influence of organizational culture. Although prior research has extensively addressed internal controls, corporate governance, and forensic accounting as post-fraud detection mechanisms, limited empirical evidence exists on the preventive governance function of integrated MACS in reducing fraud risk before occurrence. This study addresses this research gap by positioning MACS as a proactive and strategic framework for fraud risk mitigation.

A quantitative, survey-based research design was adopted. Primary data were collected from 320 employees (91% response rate) of a Nigerian microfinance bank using a structured questionnaire. Reliability testing yielded a Cronbach’s Alpha of 0.882, confirming strong internal consistency. Data were analyzed using descriptive statistics and multiple regression analysis (OLS) via SPSS version 27. Diagnostic tests confirmed the absence of multicollinearity (VIF < 1.01) and autocorrelation (Durbin–Watson ≈ 2).

The findings reveal that all fraud risk management components significantly and positively influence organizational resilience: risk assessment (β = 0.229, p < 0.001), internal controls and monitoring (β = 0.219, p < 0.001), fraud investigation and response strategies (β = 0.174, p < 0.001), and regulatory compliance (β = 0.123, p < 0.001). The regression model explains 46% of the variance in organizational resilience (R² = 0.460). When organizational culture was introduced as a control variable, the explanatory power substantially increased to 82.7% (R² = 0.827), with culture emerging as the strongest predictor (β = 0.326, p < 0.001). These results demonstrate that a strong ethical culture enhances the effectiveness of MACS in fraud mitigation.

The novelty of this study lies in its integrated empirical model linking management accounting control systems, fraud risk management strategies, and organizational resilience within a unified governance framework. Unlike prior studies focusing primarily on detection mechanisms, this research advances management accounting theory by demonstrating the preventive and resilience-building capacity of MACS.The study concludes that effective integration of MACS components significantly strengthens fraud risk mitigation and enhances organizational resilience, particularly when supported by a strong ethical culture. However, the findings are limited by the single-institution sample, cross-sectional design, and reliance on self-reported data, which may restrict generalizability and causal inference. Future research should employ longitudinal designs, multi-sector comparative studies, and mixed-method approaches to validate and extend these findings. Further investigation into the role of digital technologies, artificial intelligence, and advanced forensic analytics in enhancing management accounting controls would provide valuable insights into strengthening fraud prevention frameworks in increasingly complex financial environments.