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n Southern African Journal of Accountability and Auditing Research - Fraud investigation : sn internal audit stakeholder expectation gap

Volume 20 Number 1
  • ISSN : 1028-9011

Abstract

The role of internal auditors is evolving which enables them to provide stakeholders with the assurance and assist organisations to achieve objectives and remain competitive to ensure its future existence. This study was guided by the question whether the Institute of Internal Auditors (IIA) guidance pronouncements provides adequate guidance of the expectations of the IIA, audit committees and organisations (stakeholders) senior management with specific reference to the role of internal auditors in respect of the investigation of fraud. The reviewed literature on the role of internal auditors revealed limited guidance is provided to investigations of fraud, including the knowledge and skills required by an internal auditor.

A qualitative research methodology was adopted. The Nelson Mandela University committees, namely: Council, Senate and MANCO served as the case study including a combination of deductive and inductive interpretative analysis methods. Semi-structured interviews were utilised to acquire data from the participants who were randomly selected from the aforementioned units and university. The interviews comprised of three themes, namely: role of internal audit, information expected from internal audits and the role that the internal audit plays to inhibit fraud. The interviews were coded manually through standardised coding methods to analyse the data. After due consideration of the participant’s responses to the themes, it could be deduced that greater awareness was necessary of the role of the internal audit and the services it could provide to organisations and management structures.

The results of the analysis revealed that an expectation gap existed in the IIA guidance pronouncements and stakeholder expectations of internal auditor roles with specific reference to investigations of fraud. This study reveals that the IIA’s guidance pronouncements do not provide adequate guidance in respect of the knowledge, skills and competency capabilities in relation to investigations of fraud. The results of the study further revealed that the expected role of internal auditors in an organisation should include the performance of or participation in investigations of fraud.

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/content/journal/10520/EJC-11fd973044
2018-11-01
2019-10-16

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