Impact of Audit Committee on Fraud Management Through the Mediation of Internal Audit Activities

Abstract

This research investigates the intricate relationship between audit committees, fraud management, and the mediating influence of internal audit activities within organizations. In light of the escalating challenges posed by fraudulent activities, understanding the mechanisms through which audit committees contribute to fraud prevention is crucial for organizational resilience. The study employs a comprehensive framework to examine the direct impact of audit committees on fraud management and, more importantly, the mediating role played by internal audit activities. By leveraging empirical data collected from a diverse sample of organizations, the research aims to delineate the specific internal audit mechanisms that serve as mediators between the actions of audit committees and the overall effectiveness of fraud management. The findings of this research are expected to shed light on the nuanced dynamics between key governance elements and fraud prevention. Insights gained from this study can inform practitioners, policymakers, and scholars on strategies to enhance the collaborative efforts of audit committees and internal audit functions in effectively mitigating fraud risks within organizations. Ultimately, the research contributes to the broader literature on corporate governance, internal controls, and fraud management, offering practical implications for organizations seeking to fortify their defenses against fraudulent activities