ABSTRACT:

Outsourcing peripherals of governmental operations such as the Federal Polytechnics and other public sector organizations currently engaged is an effort to reduce cost of public sector operations. However the level of corruption and fraud in the public sector may hinder this objective to the detriment of the society that benefit from government operations as a result of poor service delivery of outsource tasks employees. The internal control system instituted in organization determines how effective and efficient the functions of the organization are performed. Therefore the internal control mechanism to some extent determines the level of fraud and deficiencies in organization. This problem is more pronounced in the public sector. The study reviewed previous studies and the use of questionnaire was made to solicit for primary data upon which the findings were made, it was discovered that there was significant relationship between internal control and fraud in outsource activities of the federal polytechnics in Nigeria. Therefore the need for strong, effective and efficient application of internal control measures was recommend to enhance fraud free outsource task of federal polytechnics in Nigeria.