Work

The internal auditor as fraud‐buster

Year: 1999

Type: article

Abstract: External auditors are often not positioned to detect and report the occurrence of employee fraud. Internal auditors, however, can be an entity’s main line of defence against fraud. In this article, the authors identify: the fraud risks and signals that internal auditors should recognize, the assistance that internal auditors can provide external auditors in implementing SAS No. 82 and complying with Title III of the Private Securities Litigation Reform Act, and the affirmative steps internal auditors can take to prevent, deter, detect, and report fraud. The future is not promising, however. All three aspects of the fraud model – pressure, opportunity, and rationalization – appear to be moving in the direction of increasing the risk of fraud. The potential for increased fraud demands a sharpened focus by the internal auditor.

Source: Managerial Auditing Journal

DOI: 10.1108/02686909910289849

Authors: William Hillison, Carl Pacini, David Sinason

Institutions: Florida State University, Georgia Southern University, Northern Illinois University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W2109086801

FWCI: 1.657

Cites: 11

Cited by: 85

Related to: 10