Abstract:
This study focused on interactive function of internal audit with corporate governance committees in fraud risk management. We identified four variables of internal audit interactive committee function as: board, audit, remunerations and risk management committees. To achieve these, a population made of 668 internal auditors, fraud auditors and accountant was sourced using a purposefully selected 15 banks; while Taro Yamane's formulae gave 400 sample sizes for the study. Likert Scale was used to analyze the responses; while Descriptive; and ANOVA parametric analysis were employed to test the four posited hypotheses. The four tested null hypotheses were rejected and the alternate hypotheses were accepted. The F-Statistic results show that 0.55 (55%) of the four internal audits interactive function variables, jointly explained the dependent variable (fraud risk). Further result shows that both the P values of the individual outcome of the independent variables are: 0.720, 0.730, 0.970, 0.740 and the overall P value, is 0.79 and they are significant at 5% level. Finally, the study findings conclude that the internal audit interactive function in fraud risk management: with board committee; audit committee; remuneration committee; and risk management committee, significantly impacts fraud risk. This provides useful information for policy makers or regulators in improving the corporate fraud risk management policies in collaboration with internal audit function.
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