THE COSO FRAMEWORK AND THE ORGANIZATION OF INTERNAL AUDIT FOR FIGHTING AGAINST FRAUD // COSO OKVIR I ORGANIZOVANJE INTERNE REVIZIJE ZA BORBU PROTIV PREVARA

Abstract

Due to inability to copy certain efficient programs or strategies for fighting against fraud, many companies have developed its own programs for fighting against fraud which are appropriate for their business, legal framework and organisational culture. This paper deals with the role of internal audit in the fight against fraud, while it investigates the organisation of internal audit for fighting against fraud. The paper presents the COSO framework which is traditionally used for organisation of internal control department as a potential framework for organisation of internal audit department in fighting against fraud. According to this model, the program for fighting against fraud needs to have the following five elements: implementation of control environment for fighting against fraud, assessment of fraud risks, anti-fraud control activities, information and communication about fraud and monitoring of activities for fighting against fraud.