Internal Auditor 's Role For Combat Fraud

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Internal Auditor’s Role to Combat Fraud
Background
Internal auditor, should be the eyes and ears of the company to combat fraud. As fraud becomes a growing problem to every company nowadays no matter what size the organization is, the risk of fraud is like a storm that could wipe the company out dry at any given time. Most companies have strategically strengthen its internal control and corporate governance to effectively mitigate fraud as it is becoming a necessity to protect the company from the perpetrators through an internal audit function. This is consistent to Flostoiu (2012) research conclusion that the excellent way to prevent fraud is by internal control and evaluate consistently to ensure internal controls remain effective, as organization with successful implementation of internal audit programs is more audit-ready and more equipped to detect fraud, as internal audit function is becoming extremely significant towards identification of fraud indicators (p.27). Nicolaescu (2013) determined the organization’s internal audit is a corporate governance structure’s important part and the internal auditor’s abilities to conduct “fraud work” (p.110). In response to the growing concern of fraud, the Auditing Standard Boards issued Statement on Auditing Standards (SAS, 2002) No. 82: Considerations of Fraud in a Financial Statement Audit, which requires auditor to strategically accomplish the audit and identify the risk of material misstatement due to fraud or error
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