Internal audit functions fraud prevention detection and reduction in covered entities in the Upper West Region of Ghana

Abstract

In recent times, the function of the Internal Auditor‟s profession has been modified to include as supervision, consultancy and partnership of management (Fury, 2016). This pattern shift in the function of internal audit enjoins Internal Auditors to play the role of preventing, detecting and reducing fraud in covered entities. It is in this bid that this study looked into internal audit functions and fraud detection, prevention and reduction in covered entities in the Upper West Region of Ghana. This study respondents is made up of internal auditors in covered entities of the Upper West Region of Ghana. Respondents‟ characteristics were analysed using descriptive statistics. The study discovered that systems of internal control; risk management and governance; enactments, policies, standards, systems and procedures; and reports by internal auditors of any suspected frauds or misuse of public funds to responsible authorities influenced internal auditors‟ fraud detection, prevention and reduction. The study also revealed that for the past three years, fraud indicators like cash on hand fraud, corruption, and fraudulent expense reimbursement were on the rise in covered entities; while, fraudulent billing, cheque tempering and payroll fraud were found to be decreasing within the covered entities. Meanwhile, fraudulent statements, non-cash fraud, fraudulent registered disbursement, cash larceny and skimming did not record any significant change in occurrence for the past three years. The study recommends that management and internal auditors in covered entities must join hands in combating fraud in these entities.