The internal auditor's responsibility for fraud

Statement on Internal Auditing Standards (SIAS) 3, Deterrence, Detection, Investigation and Reporting of Fraud, provides guidance to internal auditors performing any type of audit. Financial reporting engagements, as well as operations and compliance audits, are covered by the standard. SIAS 3 makes recommendations to internal auditors charged with ascertaining if policies are in place to deter fraud. The standard also addresses the detection and subsequent investigation of fraud. Finally, the internal auditor's responsibilities for report-writing are discussed.