Question

In your opinion, how can internal auditors best detect fraud in their organization? Provide explanations to support your answer.

Answer 1

Answer:

If you want confidence that your organization is meeting core business goals you need internal audit.

If you want to protect your enterprises against Fraud & prevent fraudulent practices, internal audits are key. Internal audits will tell you what you need to do & how to reduce risk of your operations finances & other area concern.

Fraud Detection by Internal auditors are as follows:

1. An organization’s internal auditor does a lot of the same type of work as its external auditor, but an internal auditor is concerned with all fraud rather than just the fraud that impacts the financial statements. As such, an internal auditor will likely discover some frauds as a routine part of internal auditing work.

2. An internal auditor plays a key role in developing a system of fraud indicators, so that suspicious activities are flagged and investigated. Finally, internal auditors may be concerned with violations of the organization’s policies and procedures even when they do not involve fraud.

3. In many governmental organizations (e.g., federal agencies), an inspector general monitors for, detects, and investigates fraud. Inspector generals and internal auditors often work together in managing fraud risks.

4. Internal audit is the second most common method of initial fraud detection.