Investigating the Role of Internal Auditor's Attributes in Preventing and Detecting Fraud in Business Organisations. A Case Study of Smes in Mutare Showground.

This research investigated the role of internal auditor’s attributes in preventing and detecting fraud in business organizations. The focus was on the influence of internal auditor’s attributes in the prevention and detection of fraud. A case study of 54 respondents in SMEs in Mutare Showground was carried out using both qualitative and quantitative research approaches. Stratified random sampling was used when distributing questionnaires and a convenient sampling method when carrying out interviews. Data analysis was done using tables, charts, graphs, descriptive tables, chi-square test and multiple linear regression model with IBM SPSS version 21 and Amos V18 to produce output tables. The results show that auditor experience has a positive and significant effect on fraud prevention and detection, auditor ethics has a positive and significant effect on fraud prevention and detection, professional scepticism has a positive and significant effect on fraud prevention and detection and auditor’s competency has a positive and significant effect on fraud prevention and detection. However, internal auditors in SMEs in Mutare Showground does not have the ability to prevent and detect fraud effectively as they do not have sufficient resources to employ qualified internal auditors, limited scope, pressure to maintain profitability in a competitive environment and nature as a small organisation. The findings of this study are supported by agency theory, fraud triangle theory and red flag theory. The study concluded that there is a positive correlation between auditor’s attributes and their ability to prevent and detect fraud.