In this report, Kroll, the Institute of Internal Auditors (IIA) and the Internal Audit Foundation identify that greater empowerment of and increased investment in internal audit can have a significant impact on the effectiveness of fraud risk management programs.
Key highlights include:
- Empowering and investing in internal audit teams improves effectiveness of fraud risk management
- 80% of internal auditors say they face barriers to involvement in fraud risk management
- Nearly half of respondents said internal audit isn’t involved in strategic decision making
- 60% of internal auditors who said they were “extremely involved” in enterprise-wide fraud risk management reported that the fraud risk management process was very effective or excellent, compared with 31% of those who were “very involved”
The report, based on a survey of over 700 internal audit professionals across the globe and across industries, reveals that the vast majority (80%) of internal auditors are facing barriers to being involved in managing fraud risk, despite almost two thirds (62%) saying they had seen an increase in fraud incidents over the past five years.