Audit practices and performance in fraud detection and prevention in the public sector in Uganda case of Kiruhura district

Abstract

According to Coram, Ferguson, Moroney (2006), fraud encompasses an anay of irregularities and illegal acts characterized by intentional deception, either for the benefit or detriment of the organization by internal or external persons. It comprises all acts, omissions and concealments involving a breach of a legal or equitable duty and resulting damage to another. This study set out to analyze the Audit Practices used in detecting and preventing fraud in Kiruhura district. The objectives of the study were to examine the: current audit practices used by internal auditors; tools used by internal auditors to detect fraud; level of experience and professionalism required of internal auditors in detecting and preventing the fraud risk; performance of the various audit practices in detecting and preventing fraud. The study findings indicated that: internal audit practices (internal control system (60%); supervision of transactions; whistle blowing (86.7%); segregation of duties (93.3%) are in excellent position to identify fraud schemes and scenarios and evaluate the controls in place to prevent them; the tools used by organizations such as financial model of fraud risk assessment perform, computer based audit techniques to perform analytical procedures, and use of computer programs and checklists are in a better position to detect and prevent fraudulent activities in organizations; and auditors must possess a given set of professional skills and a high degree of professionalism to be able to detect and prevent fraudulent cases in organizations. The study recommends organizations should use a good mix of audit practices with a good number of the tools used while emphasizing on the use of auditors that are well trained and practice a high level of professionalism to effectively detect and prevent fraud in organizations.