AUDITING AND FRAUD CONTROL IN CORPORATE ORGANISATIONS

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AUDITING AND FRAUD CONTROL IN CORPORATE ORGANISATIONS

Abstract

This research work assessed the relationship between auditing and fraud control in corporate organizations and also assessed the most effective between internal and external auditing and forensic auditing as it regards fraud unearthing. The quasi experimental research design was employed in this work. The primary data were collected from respondents using the questionnaire. The data collected was then subjected to analysis. Three hypotheses were formulated and the Pearson product moment correlation coefficient was used in testing Ho1 and Ho2 while the chi-square was used in testing Ho3. From the results, we found out that significant relationship exist between the dimensions of auditing (traditional auditing and forensic auditing) and fraud control and we also find out that forensic auditing is more effective than internal and external auditing in unearthing fraud. We then recommended that traditional auditing should be strengthened by training and retraining of the staff, expanding the scope of the work of traditional auditors to cover fraud detection, employment of forensic auditors in corporate organisations and constant training of such staff to be up to date with modern technology and sophisticated ways of committing fraud and their antidotes and that forensic auditors should be included during statutory auditing. We then concluded that there is an existence of positive and significant relationship between auditing and fraud control, that is, increase in auditing will lead to increase in fraud control.

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