Social Science and Human Research Bulletin

This study aims to analyze the level of effectiveness of internal audit procedures in preventing fraud in public accounting firms (KAP) operating in Medan city. Fraud cases in the world of accounting and auditing are crucial issues that can undermine public trust and cause large economic losses. Therefore, this study tries to explore how far internal audit procedures are able to detect and prevent dishonest acts committed by employees or related parties at the KAP. The method used is a quantitative study with data collection through questionnaires distributed to employees in several KAPs in Medan, as well as in-depth interviews with managers and senior auditors. The data obtained were analyzed by descriptive statistics as well as to determine the influence of various factors on the effectiveness of internal audit procedures, such as auditor competence, level of supervision, and ethical culture in the organization. The results of the analysis show that in general, internal audit procedures are quite effective in preventing fraud, but there are still weaknesses, especially in tiered supervision and reporting auditor findings. In addition, it was found that the level of auditor competence and the culture of integrity in the company greatly influenced the success of these procedures. From this study, it is recommended that public accounting firms improve the quality of auditor training and supervision, and strengthen the culture of ethics and transparency in the organization. Thus, internal audit procedures can work optimally in preventing and detecting fraud, thereby increasing client confidence and business stability in Medan city. The results of this study are expected to be a reference material for more effective internal audit practices and policies that support fraud prevention in the future

Internal audit; fraud prevention; effectiveness of audit procedures; public accounting firm, Medan; internal control

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