STUDY OF THE SCOPE OF INTERNAL AUDIT ACTIVITY FOR THE PREVENTIONAND DETECTION OF FRAUD IN ORGANIZATIONS

Abstract

This paper focuses on determining the scope of internal audit activities via an analysis of the assurance and consulting engagements. Its purpose is to examine the scope of the internal audit activities for prevention and detection of fraud in the organizations. The main conclusions are drawn based on a review of Bulgarian and foreign sources and opinions, the International Professional Practices Framework (IPPF), data from international practices and our own survey among internal auditors in the public sector, using the methods of the scientific analysis and synthesis, comparison, analysis of survey data (quantitative method).The assurance and consulting engagements carried out by the internal audit determine that part of its scope related to improving the organizations' activities, and specify its place, role and importance in providing reasonable assurance to their management that there are adequate and effective management processes for managing the inherent risks, including fraud risks, internal control systems capable of minimizing those risks are available in the structures they manage.