Internal Audit

The Importance of congenital Audit in baloney spying capital of Minnesota Coram Colin Ferguson The University of Melbourne Robyn Moroney Monash University ABSTRACT: In recent old age the importance of total corporate brass section has original squ ar public and restrictive attention. A crucial take apart of an entitys corporate governance is its internecine audit mesh. At the same time, there has been significant public concern intimately the level of contrivance indoors governments. The purpose of this study is to task whether organizations with an intimate audit function atomic number 18 more(prenominal) probably to sight fraud than those without. In this study we use a unique self-reported measure of fraud, generally relating to the misappropriation of assets, for the first time. The fraud selective information are from the 2004 KPMG Fraud Survey. The interior audit data are from a pause mail survey displace to the respondents of the KPMG Fraud Survey. W e find that organizations with an internal audit function are more likely than those without such a function to happen fraud inside their organizations. Further, organizations that intrust solely on outsourcing for their internal audit function are less likely to detect fraud than those that undertake at least part of their internal audit function themselves.

These findings propose that internal audit adds value through improving the hold and monitoring environment within organizations to detect fraud. These results in any case provoke that retention the internal audit function within the organization is more effective than completely outsourcing that ! function. Key Words: Internal audit, Fraud, embezzlement of assets 1 INTRODUCTION This study assesses the importance of the internal audit function in detecting fraud within organizations. It too evaluates differences in the effectiveness of fraud detection between organizations that rake between different internal audit approaches such as: internal audit function within the organization (hereafter insourcing); outsourcing; and a...If you lose to get a full essay, order it on our website: BestEssayCheap.com

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