Systematic Literature Review: The Role of Internal Audit and Internal Control in the Prevention and Detection of Fraud
DOI:
https://doi.org/10.59890/ijgsr.v4i6.249Keywords:
Internal Audit, Internal Control, Fraud Prevention, Fraud Detection, Systematic Literature ReviewAbstract
Fraud is a serious threat to both public and private organizations, with average losses reaching 5% of total annual revenue (ACFE, 2024). This study aims to synthesize the literature on the role of internal audit and internal control in the prevention and detection of fraud. The method used is Systematic Literature Review (SLR) based on the PRISMA framework, examining 20 selected articles from 87 articles identified through Google Scholar, Scopus, Web of Science, and SINTA-indexed journals for the period 2020–2025. The theoretical foundation includes Agency Theory, Fraud Triangle Theory, Fraud Diamond Theory, COSO Framework, and the Three Lines of Defense Model. The study results show that the effectiveness of internal audits is determined by structural independence, auditor competence, and management support, while internal control failures are more often caused by inconsistencies in implementation rather than design weaknesses. The integration between internal audit, internal control, and risk management has been shown to produce a more effective oversight system, with organizational ethical culture as a contextual variable that strengthens both. This study offers an integrative synthesis to help organizations design adaptive anti-fraud systems based on integrity values
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