Abstract:

This study aims to examine the effect of competency on the internal auditors’ contribution to fraud detection in Malaysia.  Specific competency elements examined in this study are academic qualification, fraud experience, experience in accounting, finance and external audit, professional qualifications, internal audit certification and frequency of training. Survey questionnaires were mailed to internal auditors attached to 782 companies listed on Bursa Malaysia’s main market. The results of this study suggest that internal auditors’ competency elements, namely academic qualification and fraud experience are positively associated with internal auditor’s contribution in fraud detection in Malaysia.