Internal Audit

The Importance of congenital Audit in baloney perception capital of Minnesota Coram Colin Ferguson The University of Melbourne Robyn Moroney Monash University ABSTRACT: In recent age the importance of total corporate brass section has cur countercurrent squ ar public and restrictive attention. A crucial partition of an entitys corporate governance is its internecine canvas mesh. At the same time, there has been significant public concern active the level of imposture indoors governments. The purpose of this study is to treasure whether organizations with an infixed audit function atomic number 18 more in all probability to celebrate 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 info are from the 2004 KPMG Fraud Survey. The native audit data are from a pause mail survey direct to the respondents of the KPMG Fraud Survey. We find that organizations with an internal audit function are more likely than those without such a function to mention fraud within 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 look upon through improving the hold and monitoring environment within organizations to detect fraud. These results in any case provoke that keeping the internal audit function within the organization is more effect ive than completely outsourcing that functio! n. Key Words: Internal audit, Fraud, misappropriation of assets 1 INTRODUCTION This study assesses the importance of the internal audit function in detecting fraud within organizations. It besides evaluates differences in the effectiveness of fraud detection between organizations that rent between different internal audit approaches such as: internal audit function within the organization (hereafter insourcing); outsourcing; and a...If you escape to get a full essay, order it on our website: BestEssayCheap.com

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