The relationship between internal audit characteristics and fraud risk management in insurance companies

Considering recent crises such as the Covid-19 crisis in insurance companies, internal audit is an important tool for helping control, management and organizational operations. In the old literature, internal audit focused on compliance with laws and regulations, financial control, and asset protection; However, in recent years, internal auditing has experienced many changes and emphasizes value creation, and its main goal is to create value-added activities and manage fraud and risk.

The purpose of this research is to examine the relationship between organizational structure and competencies and internal audit operations with fraud risk management in insurance companies admitted to the Tehran Stock Exchange.

This research is applied and of descriptive-correlation type, which was conducted in 1401 in insurance companies in Tehran Stock Exchange. A sample of 120 experts and auditors were selected for the research. In this research, three hypotheses were formulated. Frank et al.'s (2017) standard questionnaire was used to survey research hypotheses.

The findings showed that organizational structure and internal audit competencies have a significant relationship with fraud management in insurance companies admitted to the Tehran Stock Exchange.

Insurance companies should strengthen internal audit to manage the amount of fraud.