Jul 2026· Multidisciplinary Indonesian Center Journal (MICJO)· Vol 3, pp. 3255-3264· 0 citations
TL;DR
The research findings indicate that internal audit plays a strategic role in identifying risks, conducting oversight, evaluating the effectiveness of internal controls, and supporting the implementation of good corporate governance.
Abstract
Advances in digital technology have brought significant changes to organizational activities; however, they have also increased the risk of technology-based fraud, such as cyber fraud, data manipulation, phishing, and misuse of information systems. These conditions require organizations to strengthen the internal audit function as a critical component of internal controls and fraud prevention. This study aims to theoretically examine the role of internal audit in preventing fraud in the digital era. The research method used is a systematic literature review (SLR) by collecting and analyzing various relevant national and international journals from 2020 to 2026. The analysis process was conducted using qualitative descriptive methods through the identification, selection, and grouping of research findings based on discussion themes. The research findings indicate that internal audit plays a strategic role in identifying risks, conducting oversight, evaluating the effectiveness of internal controls, and supporting the implementation of good corporate governance. The utilization of audit technologies, such as data analytics, continuous auditing, and digital-based monitoring systems, has proven capable of enhancing the effectiveness of fraud detection and prevention more quickly and accurately. This study also found that the digital competencies of internal auditors and the company’s readiness to strengthen its internal control systems are key factors in supporting the effectiveness of internal audits in the digital age. The implications of this study suggest that organizations need to enhance the competencies of internal auditors and strengthen technology-based internal controls to address increasingly complex digital fraud risks.
The purpose of this research is to create a thorough conceptual framework for comprehending and dealing with accounting and auditing fraud. The study intends to uncover important theme areas that support fraud prevention, detection and mitigation in different disciplines by synthesizing recent academic research.
A systematic literature review was conducted using the SCOPUS database, covering research articles from 2010 to 2025. A total of 83 open access articles related to accounting and auditing fraud were analyzed. The review focused on key categories including author, year, main contribution, field, research method and analysis, and was thematically structured around technological advancements, governance mechanisms and ethical dimensions.
The review reveals that technological innovations such as machine learning, big data analytics and blockchain significantly enhance fraud detection and audit quality. However, their effectiveness is contingent upon strong corporate governance and ethical standards. Board oversight, auditor independence and forensic auditing play vital roles in mitigating fraud risks. In addition, ethical behavior, psychological well-being and auditor characteristics are critical human factors that influence the effectiveness of audit practices.
The review is limited to open-access articles within the SCOPUS database and may not capture all relevant studies outside this scope. Future research could expand to include other databases or non-open-access literature to broaden the understanding of the topic.
The findings emphasize the need for organizations to integrate advanced technological tools with robust governance frameworks and to foster ethical cultures. Auditor training should include technological competencies and psychological awareness to enhance audit effectiveness and fraud detection.
This study offers a multidimensional conceptual framework that integrates technological, organizational and behavioral factors, providing comprehensive insights into the mechanisms driving audit quality and fraud detection. It contributes to the academic discourse and offers practical guidance for practitioners and policymakers aiming to improve auditing standards in the digital era.
Arbana Sahiti Ramushi, Lum Çollaku· International Journal of Eth...· 0 citations
The results indicate that internal audit plays a crucial role in identifying risks, evaluating the effectiveness of internal controls, and supporting fraud detection and prevention through the use of digital technologies such as continuous auditing, data analytics, and real-time transaction monitoring.
Nur Azkiyah Djafar, Sitti Fatira Gumohung, Kiki Amelia Bilondatu et al.· Multidisciplinary Indonesian...· 0 citations
The results show that independent internal audit, the use of electronic audit technologies such as Big Data Analytics and Blockchain, and audit governance through Whistleblowing Systems and AI Governance have a synergistic relationship in strengthening organizational oversight systems.
This study examined the effect of internal audit quality on fraud detection in quoted insurance
companies in Nigeria. Internal audit quality was proxied by internal audit independence,
competence, objectivity, and diligence, while fraud detection served as the dependent variable.
The persistent incidence of fraud in the Nigerian insurance sector, despite regulatory reforms,
necessitates an empirical assessment of the effectiveness of internal audit functions in mitigating
and detecting fraudulent activities. The study adopted a survey research design, and data were
collected through structured questionnaires administered to 450 respondents drawn from 24
quoted insurance companies in Nigeria. The respondents were selected from internal audit, risk
management, compliance, finance departments, and audit committees. Data were analyzed using
Structural Equation Modeling (SEM) via SmartPLS to test the hypothesized relationships. The
findings revealed that internal audit competence (β = 0.312, p < 0.05), objectivity (β = 0.284, p <
0.05), diligence (β = 0.241, p < 0.05), and independence (β = 0.126, p < 0.05) all have significant
positive effects on fraud detection. The results indicate that improvements in internal audit quality
significantly enhance the ability of insurance firms to detect fraudulent activities. The study
concludes that strong internal audit quality is essential for effective fraud detection in Nigeria’s
insurance sector. It recommends enhanced audit independence, continuous professional training,
strengthened ethical standards, and improved diligence in audit processes to improve fraud
detection outcomes.
Doshiro Umar Musa· Journal of Accounting and Fi...· 0 citations
This study focused on the role of internal control on the prevention of fraud in the banking industry.
It sought to assess the significance of internal control and to suggest measures that could reduce
fraud in United Bank for Africa Plc. Conceptual review was conducted through systematic
literature search using textbooks, peer reviewed journals, and official publications. Also, it was
revealed that management control helps in the preventing of fraud in the banking industry.
Furthermore, arithmetical control was found to be a useful measure in the prevention of fraud in
the banking industry. Based on the findings, it was recommended that management should ensure
that personnel activities within and around the banking environment should be properly
scrutinized in order to avoid the emergence of fraud. Also, it was recommended that there should
be routine review of transitions by management in order to ensure that they are authorized and
processed according to lay down procedures.
Ita Ntekim Ephraim· Journal of Accounting and Fi...· 0 citations
Fraud is a serious threat that can cause significant financial losses in various forms such as corruption, manipulation of financial reports and misuse of assets for organizations, including cooperatives. This practice can damage the integrity and trust in the company’s financial information which can result in misleading stakholders in making decisions. The purpose of this study is to analyze the role of the accounting profession’s code of ethics in preventing audit fraud in the financial statements of the 2025 rabani sharia cooperative. This research method uses a qualitative approach based on case studies with secondary data obtained from cooperative annual reports, articles. To evaluate the application of ethical code principles, such as objectivity and professionalism, relevant to fraud prevention. The results of this study show that consistent application of the acoountant’s code of ethics can prevent and minimize the risk of fraud and increase public trust in financial reports. This study provides empirical evidence regarding the importance of understanding a strong internal control system and effective management oversight in fraud prevention efforts to prevent similar cases from occurring in the future.
Fitri Pebriani, Widyasari· Journal of Creative Power a...· 0 citations
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