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Internal Audit as a Tool to Reduce the Risk of Fraud and Abuse

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  • Skoczylas-Tworek Agnieszka

    (University of Lodz, Lodz, Poland)

Abstract

Objective The purpose of the publication is to present auditing as a tool to reduce the risk of fraud and abuse. The article describes the role of auditing in minimizing fraud, its application in business entities and its effectiveness. It presents the role of both internal and external auditing in reducing fraud. Methodology Both the qualitative and quantitative methods were applied in the publication. The former was used for the purpose of presenting the application of auditing in business practice, and the latter to describe the effectiveness of its operation. Findings The results of the analysis showed that auditing is an effective tool for reducing fraud and abuse. Significant effectiveness in this regard is exhibited by internal audit services. Value Added The publication is part of a series of articles describing tools for reducing fraud and abuse. It shows the application of selected tools at the organizational level and their effectiveness. It also helps answer the question concerning the validity of the tools’ implementation and provides a premise for further research to develop a comprehensive model for combating fraud in business entities. Recommendations Research on the use of auditing as a tool for reducing fraud and abuse should be conducted with a breakdown of entities by industry. This will allow verification of which industry is characterized by the greatest use of auditing in this regard. It will also make it possible to assess the effectiveness of the measures taken to minimize the risk of fraud by industry entities.

Suggested Citation

  • Skoczylas-Tworek Agnieszka, 2022. "Internal Audit as a Tool to Reduce the Risk of Fraud and Abuse," Journal of Intercultural Management, Sciendo, vol. 14(4), pages 4-20, December.
    • Handle: RePEc:vrs:joinma:v:14:y:2022:i:4:p:4-20:n:2
    DOI: 10.2478/joim-2022-0013
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    References listed on IDEAS

    as
    1. Anantawikrama Tungga Atmadja & Komang Adi Kurniawan Saputra & Daniel T.H. Manurung, 2019. "Proactive Fraud Audit, Whistleblowing and Cultural Implementation of Tri Hita Karana for Fraud Prevention," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 201-214.
    2. Mark Eshwar Lokanan & Indy Aujla, 2020. "Mapping the individual and structural theories of financial crimes," Journal of Financial Crime, Emerald Group Publishing Limited, vol. 28(2), pages 420-432, April.
    3. Omari Zuberi Kalovya, 2020. "Determinants of occupational fraud losses: offenders, victims and insights from fraud theory," Journal of Financial Crime, Emerald Group Publishing Limited, vol. 30(2), pages 361-376, January.
    4. Alissa, Walid & Capkun, Vedran & Jeanjean, Thomas & Suca, Nadja, 2014. "An empirical investigation of the impact of audit and auditor characteristics on auditor performance," Accounting, Organizations and Society, Elsevier, vol. 39(7), pages 495-510.
    5. Omari Zuberi Kalovya, 2020. "Determinants of occupational fraud losses: offenders, victims and insights from fraud theory," Journal of Financial Crime, Emerald Group Publishing Limited, vol. 30(2), pages 361-376, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    audit; fraud; abuse;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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