Internal auditors are suffering a skill shortage in fraud prevention, according to an inaugural fraud survey by Deloitte UK.
Deloitte found that while 63% of companies indicated their vulnerability to fraud has increased in the past 18 months, more than 50% view their internal audit staff levels as too low to deal with the risk. A fifth of respondents admitted to having no documented fraud policy at all.
Despite 96% of respondents claiming senior management endorse and encourage fraud risk management, the majority of the senior management who responded still believe fraud detection is part of the internal auditor’s responsibilities.
More than half of them believe they have neither the skills to handle investigative fraud evidence nor appropriate data analysis skills.
Business process and risk consulting partner at Deloitte Kirsty Searle’s said organisations must implement more effective internal fraud management processes with sufficient resources and training for ‘disgruntled’ employees.
The survey was conducted amongst heads of internal audit from businesses with an average turnover of £500m ($801m) in May and June 2010.