The Role of Auditors in Preventing, Detecting, and Reporting Fraud: The Case of the <scp>U</scp>nited <scp>A</scp>rab <scp>E</scp>mirates (<scp>UAE</scp>)

Halbouni, Sawsan Saadi

doi:10.1111/ijau.12040

Cited by 40 publications

(36 citation statements)

References 51 publications

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“…There is a growing literature on fraud and corruption and the internal audit function in developed and developing economies (see Brierley, El‐Nafabi & Gwilliam, ; D'Onza et al ., ; Halbouni, ). Most researchers argue that internal audit functions are a value‐adding process which is critical for uncovering and preventing fraud in institutions (Richards, ; Burnaby, Howe & Muehlmann, ; IIA, ; Abbott, Parker & Peter, ).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Most researchers argue that internal audit functions are a value‐adding process which is critical for uncovering and preventing fraud in institutions (Richards, ; Burnaby, Howe & Muehlmann, ; IIA, ; Abbott, Parker & Peter, ). Though most researchers (e.g., Thomas & Clements, ; Halbouni, ) believe that it is not the primary objective of internal auditors to oversee fraud prevention programmes, it is logical that internal auditors help in the identification of fraud risks in institutions. For example, in the course of their work, when they discover certain risk factors for fraudulent financial reporting in income, questionable bonus plans and restrictive debt covenants (Church, McMillan & Schneider, ), it behoves internal auditors to report.…”

Section: Literature Reviewmentioning

confidence: 99%

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Fighting Corruption by Means of Effective Internal Audit Function: Evidence from the Ghanaian Public Sector

Asiedu

Deffor

2017

Int J Auditing

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Using structural equation modelling (SEM) we analysed the link between corruption and effective internal audit function (EIAF) in Ghana through a survey of directors and managers of selected public sector organizations. A decade after the promulgation of the Internal Audit Agency Act (IAAA), 2003 (Act 658) as an instrument to fight administrative corruption in Ghana, there is little empirical evidence to show its impact on corruption, though anecdotal evidence suggests it has played a critical role in maintaining financial discipline and public sector accountability and transparency. We established that full implementation of Act 658, size of the internal audit department and independence of the audit department significantly affect the effectiveness of the internal audit function which negatively impact on corruption. We conclude that strict adherence to and the implementation of regulations and laws as well as independence of the internal audit function will help fight administrative corruption in Ghana.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Fighting Corruption by Means of Effective Internal Audit Function: Evidence from the Ghanaian Public Sector

Asiedu

Deffor

2017

Int J Auditing

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“…Previous evidence has shown that internal auditors are more helpful in detecting fraud and corruption than external auditors are (Halbouni, ; Jayalakshmy, Seetharaman, & Khong, ); nevertheless, they are still reluctant to report them. Accordingly, academicians and professionals describe them as “gatekeepers” who failed to prevent the global financial scandals (Chambers & Odar, ).…”

Section: Introductionmentioning

confidence: 99%

Breaking the silence: An empirical analysis of the drivers of internal auditors' moral courage

et al. 2018

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This study investigates the effect of positive states, perceived supervisor support and independence of internal audit function on internal auditors' moral courage. Although extensive research has suggested that risk of feared consequences is the major cause that inhibits internal auditors from reporting managerial fraud, there has been little empirical investigation into the way of fostering internal auditors' moral courage to speak up. This study used a survey of 146 internal auditors in Tunisia. The partial least squares–structural equation model was used to test our hypotheses. The results indicate that self‐efficacy, resilience, perceived supervisor support and the independence of internal audit function have a positive effect on the internal auditors' moral courage; however, state hope does not show a significant link. Additionally, we find that women experience higher levels of moral courage than men do.

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“…For instance, studies on the effect of AC's characteristics on the IAF [5][6][7][8][9][10][11][12][13][14][15][16][17]. Meanwhile, most previous studies on fraud detection have been based on the perceptions of IA, external auditor (EA) and financial accountants on the roles of corporate governance (includes IA, EA and AC) to detect fraud such as in [18][19][20][21][22]. Very limited studies on fraud detection had investigated the effects of the interaction between IA and AC on IA's contribution to fraud detection.…”

Section: Introductionmentioning

confidence: 99%

The Effects of Interaction between Internal Auditor and Audit Committee on Fraud Detection in Malaysia

Hamdan¹,

Jaffar²,

Razak³

2018

IJET

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This study aims to examine the effect of interaction between internal auditor and audit committee on fraud detection in Malaysia. Specific interaction is firstly; audit committee approving the appointment of chief audit executive, the evaluation of chief audit executive, the dismissal of chief audit executive, the internal audit budget and the internal audit plan or program. Secondly, audit committee's involvement in reviewing internal auditor's work specifically; providing input for the internal audit plan, reviewing the results of internal auditing related to financial reporting, reviewing the results of internal auditing related to internal control, reviewing the results of internal auditing related to compliance with laws and regulation, reviewing the internal audit involvement in management responses to internal audit suggestions, reviewing the difficulties or scope restrictions encountered by internal auditors and reviewing the coordination between internal auditors and external auditors. Survey questionnaires were mailed to internal auditors attached to 782 companies listed on Bursa Malaysia's main market. The results of this study suggest that involvement of audit committee in approving chief audit executives' matters is insignificant on internal auditors' contribution to fraud detection. However, audit committee's involvement in reviewing internal auditors' work significantly influence the internal auditors' contribution in fraud detection.

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The Role of Auditors in Preventing, Detecting, and Reporting Fraud: The Case of the United Arab Emirates (UAE)

Cited by 40 publications

References 51 publications

Fighting Corruption by Means of Effective Internal Audit Function: Evidence from the Ghanaian Public Sector

Fighting Corruption by Means of Effective Internal Audit Function: Evidence from the Ghanaian Public Sector

Breaking the silence: An empirical analysis of the drivers of internal auditors' moral courage

The Effects of Interaction between Internal Auditor and Audit Committee on Fraud Detection in Malaysia

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