The Role of Internal Audit on Fraud Detection and Prevention in the Case of Ethiopia Ministry of Revenue

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According to the institute of internal auditors practical guide internal auditors evaluate risks faced by their organizations based on audit plans with appropriate testing. Internal auditors need to be alert to the signs and possibilities of fraud within an organization. The role of internal audit must be determined in the investigation process in the internal audit regulations as well as in the fraud related policies and procedures. The general objective of the study is to examine the role of internal audit on fraud detection and prevention in Ethiopian Ministry of Revenue. This study was conducted by using a cross sectional survey to investigate the role of internal audit and to compute this study four branch of Ethiopian Ministry of Revenue were selected purposively selected. Descriptive statistic was used to analyse the data from the survey by using SPSS version 20. Both primary and secondary data were used as a data source. The study found out that there is in appropriate organization set up and undefined scope of internal auditors in the organization and in related to fraud detection, inadequate competence of auditors’ and independence problem toward the usefulness of internal audit work to detect and prevent fraud. It also assess the internal audit risk assessment that contributes in detection and prevention of Fraud. The study concluded that internal audit staff of Ethiopian Ministry of Revenue lacks the necessary competence and independence to prevent and detect fraud. Fraud risk assessment is not exercised which support internal audit to control fraud. As a result, internal audit have had limited role in fraud prevention and detection in the study organization.



Ethiopian Ministry of Revenue, internal audit, fraud