Fraud
Fraud
Fraud
Realised by :
Ayoub M’BARKI
Khaled FOURATI
Hamza AIM
©2017 Grant Thornton Limited
Introduction
Every year billions of dollars are lost to fraud and corruption resulting in
inefficiencies, aborted projects, financial challenges, organizational failure,
and, in extreme cases, humanitarian disaster. Often fraud occurs because of
poorly designed controls and weak governance undermining the organization’s
processes.
Organizations should have robust internal control procedures to limit the risk of
fraud, and internal audit’s role is to assess these controls.
• How organizations deal with the risk of fraud may be influenced by legal
jurisdiction and the organization’s own risk assessment.
• It is not the role of the IA to identify fraud, but it’s management’s primary
responsibility
• Internal auditors should provide objective assurance to the BOD that fraud
controls are sufficient for identified fraud risks and ensure that the controls
are functioning effectively.
The 2016 Report to the Nations on Occupational Fraud and Abuse: ACFE Global Fraud Study
• Stakeholder relationships
• Decreased morale/productivity
The 2016 Report to the Nations on Occupational Fraud and Abuse:
ACFE Global Fraud Study
The 2016 Report to the Nations on Occupational Fraud and Abuse: ACFE Global Fraud Study
Fraud investigations are best carried out by those experienced to undertake such
assignments. Organizations should not expect internal audit’s skill set to include fraud
investigation. Instead, internal audit should support the organization’s anti-fraud
management efforts by providing necessary assurance services over internal controls
designed to detect and prevent fraud. If circumstances require internal audit to take
on an investigatory role, internal auditors should exercise due professional care.