Abstract:
The study assessed the contribution of internal auditor in effectiveness use of financial resources in state owned organization; the case study of Tanzania Cotton Board. The study investigated the factors influence the role of internal auditor to fraud prevention in the organization, the importance of the internal auditor in organization fraud prevention and the problems facing the work of internal auditor in organization fraud prevention. The study involved (61.1%) were males and (38.9%) females. Data collection methods were questionnaires and interview questions.
Findings revealed different opinions on factors influence the role of internal auditor to prevention of fraud in the organization such as; knowledge, altitudes, responsibility, ability to identify risks knowledgeable about professional standards relating to fraud, the best, mildly positive toward the idea of the internal audit department being a primary party in detecting fraud within their organizations. Different importance of internal auditor in fraud prevention within organization were revealed such as; to achieve accountability and integrity, enhance transparency and fairness, improve organizational performance, improve service delivery, control financial services and other importance such as; instill confidence among citizens and stakeholders and to reduce corruption. Factors limit the effectiveness of the role of internal auditor in organization fraud prevention discovered such as; lack of honesty, accountability, the operational experience, competence and other factors such as Strategic positioning confidentiality and lack of objectivity.
The study findings concluded that internal auditors support management's efforts to establish a culture that embraces ethics, honesty, and integrity. They assist management with the evaluation of internal controls used to detect or mitigate fraud, evaluate the organization's assessment of fraud risk, and are involved in any fraud investigations. The findings of this study recommended that the external auditor should evaluate whether the Tanzania Cotton Board identified risks of material misstatement due to fraud that have been suitably designed and placed in operation.
