Fraud is on the rise: step up to the challenge
Organisations are currently grappling with a myriad of business-critical risks such as supply chain disruption, staff retention, and cyber threats to name a few. This means that temptations and opportunities for fraud have increased, and fraudsters will take advantage of the situation using ever more sophisticated tools to commit their crimes. So, now more than ever, organisations and internal audit functions must be on the front foot to tackle fraud risk.
Download our fraud report (PDF)
About the report
The aim of the report is to encourage internal audit functions to step up to the challenge and do more to defend against the rising cases of fraud.
Organisations have not traditionally regarded fraud as a high-risk priority, but with fraud now on the increase they must re-evaluate how they manage and communicate this risk. The research presented in this report, which is based on a series of sectoral roundtable discussions with senior internal auditors, has found that although the generic risk of fraud has been recognised as important, the response to it is inconsistent.
The key messages in the report are as follows:
- Regular fraud risk assessments are a fundamental practice for internal audit teams.
- Internal audit teams must take a more proactive role in the fight against fraud.
- In periods of heightened volatility, it is vital for internal audit functions to constantly revisit the fraud triangle (motivation, opportunity, rationalisation) to help anticipate fraud, and how this can be applied in practice.
- Internal audit must raise awareness around fraud and act as a trusted advisor to the board and senior management on areas that need improvement.
- Internal audit functions should prepare for increased scrutiny and accountability on fraud from the government, regulators, and the public.
Technical Guidance: Fraud, Chartered Institute of Internal Auditors UK & Ireland
Technical Guidance: Auditing counter-fraud strategy, Chartered Institute of Internal Auditors UK & Ireland
Technical Guidance: Fraud risk assessment, Chartered Institute of Internal Auditors UK & Ireland
Auditing fraud and financial crime