Anecdote evidence reveals that the vice of fraud has penetrated the Ugandan commercial banking sector. Therefore, this study sought to examine the influence of internal controls on fraud prevention in Ugandan commercial banking sector. Its specific objectives included an examination of the relationship between the control environment and fraud prevention, the influence of control activities on fraud prevention, and ascertainment of the effect of monitoring internal controls on fraud prevention. These objectives were informed by the work of scholars such as COSO (2013), Basel committee (1998), Nainta (2005), and Uganda Bankers Association (2013).

The study used a cross-sectional survey design, using qualitative and quantitative approaches, to collected data from 116 employees of Bank of Baroda Uganda Limited, Kampala Main Branch. The findings of the study showed that there was a very strong positive relationship between internal controls and fraud prevention at Bank of Baroda Uganda Limited. This relationship was represented by a calculated value of r=0.894** at significance level 0.000<0.01. The findings also revealed that there was a very strong positive relationship between the control environment and fraud prevention. This was reflected in the calculated value of r=0.817** at significance level 0.000<0.01. Furthermore, the data showed that there was a strong positive relationship between the control activities and fraud prevention. This was supported by the calculated value of r=0.670** at significance level 0.000<0.01.That there was a very strong positive relationship between monitoring internal controls and fraud prevention at Bank of Baroda Uganda Limited Kampala Main Branch was supported by the calculated value of r=0.851** at significance level 0.000<0.01. The study recommends that the bank should establish an adequate audit department, carry out periodic reviews, monitor and evaluate its internal controls, implement secure IT infrastructure, continuously train the employees and provide appropriate benefits and salaries to staff based on their competences and economic conditions in order to control fraud.