The Internal Audit fraud challenge
Since our last Internal Audit Fraud Survey in 2010, the mandate and role of Internal Audit functions have continued to evolve, in respect of both fraud risk management and investigation responsibility. Management are still dependent on Internal Audit to provide them with assurance over the anti-fraud controls in place across their businesses, together with the ability to detect and investigate fraud, should it occur.
So, in light of increased pressures and demands on the Internal Audit function, this survey has covered a range of issues including whether continuing changes in the regulatory environment have had a significant impact on the role of Internal Audit; whether the complexity of data-gathering and transaction monitoring within organisations has affected the role of Internal Audit;
and if Internal Audit functions are sufficiently equipped to respond to increased pressures.
In addition, the survey has looked to see how businesses have actually been impacted by fraud, and how the role and remit of Internal Audit might have changed since our last survey. We also examine the role of Internal Audit in preventing and detecting fraud, and senior management’s expectations of their Internal Audit function.
The results of this cross-industry survey are based on responses to a number of quantitative questions answered by Heads of Internal Audit during March and April 2012.