STRATEGIC APPROACHES OF INTERNAL AUDITORS ON OCCUPATIONAL FRAUD

Abstract

Positioned in the organizational structure to provide value-adding services in helping the management in attaining their goals and objectives, internal auditors experienced challenges in which they implement strategic approaches in assessing and investigating occurrences of occupational fraud. The researcher followed a descriptive phenomenological method of inquiry to better understand the challenges and coping strategies of purposively interviewed fifteen (15) internal auditors on occupational fraud. Transcribed responses of the participants disclosed significant statements that were grouped into themes. The initial 3 themes pertained to the challenges encountered by the internal auditors: (1) The Experienced Personal and Social Threats; (2) The Fraud Style and Techniques of the Perpetrators, and; (3) The Organizational Barriers to Internal Audit Activities. The last 3 themes are associated to the coping strategies employed by the internal auditors to address the challenges of occupational fraud: (4) Strengthening the Personal Attributes of the Internal Auditors and their Professionalism; (5) Proper Coordination and Collaboration of Audit Works, and; (6) The Ultimate Remedy of Internal Auditors. With appropriate personal and professional attributes; sufficient technical and technological skills; ethical, functional, and administrative support of the top management, and; proper coordination of audit activities with the audit team, legal officers, and other fraud experts, internal auditors are capable of providing services to the organization. Otherwise, internal auditors are guided by the international audit standards to withdraw or resign from the audit engagements.