FRAUD PREVENTION AND DETECTION THROUGH INFORMATION TECHNOLOGY: FROM THE PERSPECTIVE OF INTERNAL AUDITOR’S

Abstract

This study aims to explore internal auditors' perceptions regarding the prevention and detection of fraud through the use of technology information. A literature review was conducted to understand the views of internal auditors on the use of information technology (IT) to prevent and detect fraudulent acts within the organization. The research method used is a qualitative approach by conducting in-depth questionnaires on several practitioners who are experienced in the field of auditing and internal control. Data was obtained through questionnaires distributed to internal auditors working in Indonesia. Data analysis was performed using descriptive analysis. The results of this study with the existence of good monitoring instruments, such as standardized policies and procedures, transparent reporting systems, and the use of appropriate information technology, organizations can be more effective in monitoring and controlling activities that have the potential to give rise to fraud. In conclusion, internal auditors view IT as an essential tool in fraud prevention and detection. However, a deeper understanding of IT capabilities is needed to deal with increasingly complex and sophisticated fraud. Therefore, companies need to strengthen their internal control systems by considering the advantages and disadvantages of IT in fraud prevention and detection.