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.