The Role of Internal Audit on Fraud Detection and Prevention in the Case of Ethiopia Ministry of Revenue
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Date
2021-01
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A.A.U
Abstract
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.
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Keywords
Ethiopian Ministry of Revenue, internal audit, fraud