The Role of Corporate Governance in Preventing Accounting Fraud

Abstract

Accounting fraud continues to pose a serious threat to the credibility of financial reporting and the stability of capital markets. High-profile corporate failures have demonstrated how weak oversight structures and ineffective governance mechanisms can allow fraudulent financial practices to go undetected. the role of corporate governance in preventing accounting fraud by analyzing the effectiveness of board oversight, audit committees, internal control systems, ownership structure, and external audit quality. how governance mechanisms function as monitoring and control tools designed to reduce agency conflicts between management and shareholders. Particular attention is given to the independence and expertise of board members, the financial literacy and activity level of audit committees, and the robustness of internal control frameworks. The study also considers the influence of regulatory reforms and ethical corporate culture in strengthening accountability and transparency.