The widespread adoption of the Internet of Things (IoT) has transformed various sectors globally, making them more intelligent and connected. However, this advancement comes with challenges related to the effectiveness of IoT devices. These devices, present in offices, homes, industries, and more, need constant monitoring to ensure their proper functionality. The success of smart systems relies on their seamless operation and ability to handle faults. Sensors, crucial components of these systems, gather data and contribute to their functionality. Therefore, sensor faults can compromise the system's reliability and undermine the trustworthiness of smart environments. To address these concerns, various techniques and algorithms can be employed to enhance the performance of IoT devices through effective fault detection. This paper conducted a thorough review of the existing literature and conducted a detailed analysis. This analysis effectively links sensor errors with a prominent fault detection technique capable of addressing them. This study is innovative because it paves the way for future researchers to explore errors that have not yet been tackled by existing fault detection methods. Significant, the paper, also highlights essential factors for selecting and adopting fault detection techniques, as well as the characteristics of datasets and their corresponding recommended techniques. Additionally, the paper presents a methodical overview of fault detection techniques employed in smart devices, including the metrics used for evaluation. Furthermore, the paper examines the body of academic work related to sensor faults and fault detection techniques within the domain. This reflects the growing inclination and scholarly attention of researchers and academicians toward strategies for fault detection within the realm of the Internet of Things.