Globalization has increased the scale and complexity of today’s business environment. The growing footprint and size of businesses have brought forth challenging scenarios resulting in various vulnerabilities in systems, procedures and frameworks. One of the biggest risks facing businesses in current times is the risk of fraud. To deal with this risk effectively, managements and boards are increasingly depending on the internal audit functions.
Internal Audit can no longer afford to take a back seat in dealing with fraud risk; they need to be at the forefront in assisting management in setting up processes to prevent frauds in an organization. Internal audit can reduce the risk of fraud by assessing organization culture and governance structure, assessing the rotation policy, ensuring seamless audit policy across entities, conducting balance sheet reviews, assessing the whistleblower policy, conducting exit interviews etc.
In this paper, we discuss the controls which enable the internal audit teams to enhance their role towards identifying vulnerabilities in the system for manipulation and fraud.