Title: Fraud investigation skills for internal auditors

Authors: Mario Labuschagne; Houdini Fourie

Addresses: Faculty of Business and Economic Sciences, Nelson Mandela University, Gqeberha, 6017, South Africa ' Faculty of Business and Economic Sciences, Nelson Mandela University, Gqeberha, 6017, South Africa

Abstract: This study emanated from the large amounts of global fraud cases reported annually and a noticeable increase in fraudulent activities during the Covid-19 pandemic. As assurance providers to users of internal audit services, internal auditors are expected to perform fraud investigations while they are not always adequately equipped with the knowledge and skills to perform such. Underpinned by the policeman theory and the theory of inspired confidence, the study aimed to identify/determine whether an expectation gap exists between what users of internal audit services expect and what guidance pronouncements of the Institute of Internal Auditors (IIA) include. To achieve the research objectives of the study, an interpretivist research paradigm and a qualitative methodological approach were adopted. Data were collected through semi-structured interviews from authoritative internal auditors on the membership database of the IIA South Africa. Findings confirmed the existence of an expectation gap and the limited guidance contained in IIA guidance pronouncements and standards.

Keywords: fraud; fraud investigation; internal audit; internal auditor; skills; evidence; risk.

DOI: 10.1504/IJAAPE.2025.144914

International Journal of Accounting, Auditing and Performance Evaluation, 2025 Vol.21 No.1/2, pp.301 - 318

Received: 20 Apr 2023
Accepted: 07 Feb 2024
Published online: 07 Mar 2025 *