AuditNet Audit Software Survey Results

Fraud and Internal Audit Survey AuditNet Survey Fraud Hot Spots 2010: What's On Your Radar? Click here for the Summary and Detailed Survey Responses Recent changes in the Institute of Internal Auditors (IIA) Standards—contained in the Institute’s International Professional Practices Framework (IPPF) — state that internal auditors must evaluate the potential for the occurrence of fraud and how the organization manages fraud risk. In light of this newly heightened emphasis on the anti-fraud role of internal auditors, we conducted a survey to determine what fraud risks internal auditors are concerned with and how they are addressing these risks in their audit plans. Of the more than 100 auditors who responded, over two thirds were from audit departments with fewer than 10 auditors. Almost half (48.5%) of the respondents indicated that they felt that internal fraud (by employees) against corporations is getting worse. Similarly, nearly two thirds of respondents felt that external fraud (by dishonest vendors, computer attack, customers) is getting worse. This implies that, while statistics show most fraud against organizations is perpetrated by insiders, external fraud may be narrowing the margin. If true, this would not be surprising, given the dramatic advances in technology—both on and off the Internet—that make it increasingly easy for unscrupulous outsiders to perpetrate such increasingly costly crimes as digital account hijacking, ...