An analysis on the effectiveness of external audit in combating fraud. A case study of Hippo Valley Estates Chiredzi Zimbabwe. 2009 to 2013
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This research was a case study of Hippo Valley Estates in Chiredzi Zimbabwe on the effectiveness of external audit in combating fraud from 2009 to 2013. The major objective of the study was to determine whether the audit selection policy in place at Hippo Valley Estates from 2009 to 2013 guaranteed transparency and independency of auditor. Other objectives included determining whether audit plans and tests provide reasonable assurance that errors and fraud ;okare detected during the audit period at the organization. Simple random sampling was the technique used by the researcher. The total sample size was 90 employees of which 30 employees who constituted 30 % of the total study population were the research sample. Questionnaires and guided interviews were data collection instruments used by the researcher. The major findings of the research were that the audit selection policy in place did not guarantee transparency and external auditor independence and that audit plans and tests do not provide reasonable assurance that errors and fraud incidences are detected. The researcher also discovered that the majority of the employees were not aware of the anti-fraud policy. Recommendations by the researcher were to remove top management from the audit committee and to establish an internal audit department at the organization which could assist external auditors in their audit plans and tests.