INTERNAL AUDIT AS A TOOL OF FRAUD MANAGEMENT

Internal audit supports the process of organisation management and contributes to its increased effectiveness. One of its principal goals is detection of errors, including fraud which research shows to be a grave problem to enterprises due to both its rising numbers and value of losses it generates. Internal audit may be a protection against the risk of fraud by examining risks present in an enterprise as well as by evaluating correctness and efficiency of an internal control system. Research demonstrates it is a major source of fraud detection in enterprises analysed in respect of both global regions and company size.