Internal Audit Function and Fraud Detection in Government Agencies. Acase Study of Naads Kumi
CHAPTER ONE
1.0 Introduction
This chapter will cover the background of the study, the statement of the problem, the purpose of the study, the objectives, the research questions, and the scope, the significance of the study and the structure of the report.
1.1 Background of the Study
According to Hector Perela, (2009), Internal auditing function with other intervention mechanisms like financial reporting and external audit to helps maintain cost-efficient contracting between owners and managers. It is designed by government agencies to add value and improve organizational performance. It helps organizations accomplish their objectives by bringing a systematic, disciplined approaches to evaluate and improve the effectiveness of risk management, control and governance processes.” Internal audit helps organizations to ensure that financial and other records are reliable and complete.
As well as ensuring that management adheres to policies and procedures for orderly and efficient conduct of the business, proper recording and safeguarding of assets and resources. The purpose of internal audit as far as the organization is concerned is to get accounting errors corrected and control weaknesses eliminated. The most testing time for the internal auditor is the report he/she writes to achieve this end.
No precise legal definition of fraud exists; many of the offences referred to as fraud are covered by the Theft Acts of 1968 and 1978. Generally, the term is used to describe such acts as deception, bribery, forgery, extortion, corruption, theft, conspiracy, embezzlement, misappropriation, false representation, concealment of material facts and collusion. For practical purposes fraud may be defined as the use of deception with the intention of obtaining an advantage, avoiding an obligation or causing loss to another part. (Internal Audit, University of Birmingham, Edgbaston, Birmingham, B15 2TT, UK)
On one hand, fraud detection in government agencies involves employees or
1.0 Introduction
This chapter will cover the background of the study, the statement of the problem, the purpose of the study, the objectives, the research questions, and the scope, the significance of the study and the structure of the report.
1.1 Background of the Study
According to Hector Perela, (2009), Internal auditing function with other intervention mechanisms like financial reporting and external audit to helps maintain cost-efficient contracting between owners and managers. It is designed by government agencies to add value and improve organizational performance. It helps organizations accomplish their objectives by bringing a systematic, disciplined approaches to evaluate and improve the effectiveness of risk management, control and governance processes.” Internal audit helps organizations to ensure that financial and other records are reliable and complete.
As well as ensuring that management adheres to policies and procedures for orderly and efficient conduct of the business, proper recording and safeguarding of assets and resources. The purpose of internal audit as far as the organization is concerned is to get accounting errors corrected and control weaknesses eliminated. The most testing time for the internal auditor is the report he/she writes to achieve this end.
No precise legal definition of fraud exists; many of the offences referred to as fraud are covered by the Theft Acts of 1968 and 1978. Generally, the term is used to describe such acts as deception, bribery, forgery, extortion, corruption, theft, conspiracy, embezzlement, misappropriation, false representation, concealment of material facts and collusion. For practical purposes fraud may be defined as the use of deception with the intention of obtaining an advantage, avoiding an obligation or causing loss to another part. (Internal Audit, University of Birmingham, Edgbaston, Birmingham, B15 2TT, UK)
On one hand, fraud detection in government agencies involves employees or