The Effect of Internal Controls on Fraud Detection and Prevention at Navana Welding Electrode Ltd.

Abstract

This internship report critically examines the internal control system of Navana Welding Electrode Ltd. (NWEL), with a focus on fraud detection and prevention measures. Set against the dynamic backdrop of Bangladesh's welding electrode industry, this paper encompasses an in-depth review of internal controls within NWEL. Tracing the company's roots in the esteemed Navana Group, the report aligns NWEL's growth with trends and challenges in the larger industry context. It follows a methodical approach, employing interviews, observation, and data analysis to investigate the company. The objectives include evaluating the internal controls' effectiveness, identifying possible weaknesses, and proposing strategies for enhancing fraud prevention. The methodology weaves primary and secondary data sources, capturing both quantitative and qualitative insights. The findings segment offers a balanced view of NWEL's control landscape, examining strengths and shortcomings. For instance, while revenue recognition and IT security demonstrate strong controls, inventory management and procurement present opportunities for improvement. The recommendations section proposes specific strategies, such as regular fraud risk assessments and advanced fraud detection technologies, to bolster NWEL's internal control system. In conclusion, this report underscores the importance of robust internal controls, illustrating the urgent need for continual refinement to fortify NWEL's operations. The author extends deep gratitude to the NWEL team for their cooperation and insightful contributions during the research process. This report aims to guide NWEL further along its path toward excellence in ethical business practices and internal controls.