Factors That Influence Internal Auditors Fraud Detection Capabilities in Ghana

ABSTRACT

With an upsurge of fraud in the current economic scenario experienced, fraud detection have received considerable attention from the investors, academic researchers, media, the financial community and regulators (Sharma & Panigrahi, 2012). This study therefore examines the factors that influence internal auditors‟ fraud detection capabilities in Ghana. To sample the respondents for the study, stratified random sampling technique was adopted and questionnaire was used to solicit information from the 200 internal auditors selected. The study employed binary logistic regression model to examine the factors that influence probability of an internal auditor detecting fraud. The binary logit regression model was used because the dependent variable which is fraud detection is binary. The study found out that experience of the respondent, educational attainment of the respondent, in service training, respondent knowledge of information and technology, organization in which the respondent works and control environment are key predictors of probability of internal auditor detecting fraud. This study strongly recommends that Institute of internal Auditors, Ghana and management of various organizations should increase the number of in-service program they organize and also encourage internal auditors to participate. Also, internal Auditors should be encouraged to enrol on professional courses like certified internal auditor and certified fraud examiner programs. Last but not least, management of various organizations should give maximum support to internal auditors in carrying out their duties