Red flags in detecting credit cooperative fraud: the perceptions of internal auditors

Red flags are mechanisms that can be used by internal auditors for early detection of possible fraud. In this context, the aim of this study was to identify the relevance credit unions' internal auditors attribute to red flags in assessing fraud risk. This article is characterized as descriptiv...

Full description

Saved in:
Bibliographic Details
Published in:Revista brasileira de gestão de negócios 2017-07, Vol.19 (65), p.469-491
Main Authors: Magro, Cristian Baú Dal, Da Cunha, Paulo
Format: Article
Language:English
Subjects:
Cooperatives
Credit Unions
Financial statements
Fraud
Fraud prevention
Internal Auditor
Internal auditors
Perceptions
Prevention
Red flags
Studies
Citations: Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Red flags are mechanisms that can be used by internal auditors for early detection of possible fraud. In this context, the aim of this study was to identify the relevance credit unions' internal auditors attribute to red flags in assessing fraud risk. This article is characterized as descriptive concerning its goals, as a survey as to is procedures, and as quantitative in reference to its approach to the problem. The sample consists of 51 internal auditors working in Credit Union Centers in southern Brazil. Results indicate that, in the assessment of fraud risk, internal auditors attribute greater importance to red flags referring to operational activities and internal control procedures. In addition, it is suggested that internal auditors are not impartial concerning their perception of relevance of most of the warning signs of the possibility of fraud. The findings contribute by demonstrating to internal auditors the need for greater attention to the use of red flags as auditing tools.
ISSN:1806-4892
1983-0807
DOI:10.7819/rbgn.v19i65.2918