The Role Of Internal Audit In Reducing Fraud; The Case Of Buusaa Gonofaa Microfinance Institution, Dambal And Central Region, Oromia Regional State, Ethiopia

Abstract

This study examines the roles of internal audit in reducing fraud the case of BG MFI including the factors that influence internal audit' responsibility and expert performance in detecting fraud. To answer the basic research question raised the researcher used descriptive type of research method and also used both qualitative and quantitative approaches would be used to achieve the study objectivity and validity.The study adopts questionnaire data and depth interviews research approach by combining data gathering instruments of research questions. Data was analyzed using statistical package for social scientist windows software. The findings of the study show that,the contribotion of internal audit to prevention of fraud, challenging of internal audit on study area and cause of employee to commit fraud significantly influence the auditor’s expert performance to fraud detection. The research result indicate that majority of respondents were in the practice of contribution of internal audit in prevention of fraud, for improvement in the area of failure of management to correction action taking on audit findings , lack competent staff, lack of man power, poor control activities, weak of internal control, insufficient supervision, luck of ethics were implemented Therefore managements should be given high attention to the organization by involving in the internal audit and other internal control staff in the fraud reducing and should be uses their skill to identifying, evaluating, and controlling risks to achieving the institution goals and objective