A critical analysis of the impact of internal auditing on fraud detection in the cement manufacturing industry of Zimbabwe

impact of internal auditing on fraud detection


  • Newman Wadesango University of Limpopo
  • Patience Mutambira Midlands State University
  • lovemore Sistcha Midlands State University
  • Ongayi Wadesango University of Limpopo


Financial management, internal audit, fraud detection, cement industry


The title of this study was a critical analysis of the impact of internal auditing on fraud detection in the cement manufacturing industry of Zimbabwe. Epistemology was adopted as the philosophical basis of the study and the research paradigm was pragmatism. The quantitative research approach was selected and for data collection, researchers used questionnaires. The convergent parallel research design was used and the target population was made up of 5 000 staff and employees from the three major cement manufacturers in Zimbabwe. The Krejcie and Morgan (1970) table was applied to obtain a research sample of 357. The study made use of simple random sampling and purposive sampling and the data collection instruments used in this study included questionnaires and interviews.  The ffindings on the types and extent of use of internal audit in the studied cement manufacturing firms revealed that the mostly used type of internal audits are management audits. The internal audits in the studied firms were found to be poor in most aspects such as the accomplishment of objectives; enhancing organizational effectiveness; preventing errors and other unforeseen problems; risk management and the identification of the basic objective of internal auditing, among others. The effectiveness of the audits is fairly affected by financial, political and legal factors. With regards to the influence of internal audits on the prevention and detection of fraud, findings of the study also suggested that the internal auditing in the studied cement manufacturing firms fails to deal with the major forms of fraud in the organisations, such as skimming payments from customers; check tampering; cash theft; the misuse of company credit cards as well as improper payroll transactions. An R2 of 0.307, with a T value of 0.942 and a significance of 0.446 at the P>0.05 level showed a low but significant relationship between the fraud variable and the internal auditing in the firms.  There was also an R2 value of 0.015 and a T value of 0.347 with a significance of 0.738 at the P>0.05 level, showing that there was no significant relationship between the ROA and the performance level of the cement manufacturing firms. Findings on the strategies that could possibly be used to enhance the fraud detection and prevention capabilities of internal audits in the studied firms include undertaking more regular and routine financial auditing and ensuing legal procedures for fraudulent employees who fail to adhere to audit recommendations. The study therefore recommended for the adoption of other internal audit principles and strategies, formulating a consistent internal audit policy, regular financial auditing and to fund the implementation of internal audit recommendations.

Author Biographies

Patience Mutambira, Midlands State University

Department of finanncail management

lovemore Sistcha, Midlands State University

Economics and management

Ongayi Wadesango, University of Limpopo



Abiodun, E.A. (2020) Internal Control Procedures and Firm’s Performance. International Journal of Scientific & Technology Research, 9 (2).
Adelana, O.O. Toba, A.M. (2018) Internal control system and fraud detection and prevention in Nigeria: evidence from Ondo State. International Journal of Advanced Academic Research, 4 (12).
Adeyemo, K.A. (2012). Frauds in Nigerian Banks: Nature, Deep-Seated Causes, Aftermaths and Probable Remedies. A Mediterranean Journal of Social Sciences. 3(2). 279-289.
Dimitrijevic, D. Milovanovic, V. Stancic, V. (2015) The role of a company's internal control system in fraud prevention, e-Finanse: Financial Internet Quarterly, ISSN 1734-039X, University of Information Technology and Management, Rzeszów, 11 (3).
Drogalas, G. Karagiorgos, T. Arampatzis, K. (2015) Factors associated with Internal Audit Effectiveness: Evidence from Greece. Journal of Accounting and Taxation, 7 (7): 113-122.
Drogalasa, G. Pazarskis, M. Anagnostopoulou, E. Papachristou, A. (2017) The effect of internal audit effectiveness, auditor responsibility and training in fraud detection. Accounting and Management Information Systems, 16 (4).
Eulerich, A. Eulerich, M. (2020) What is the value of internal auditing? – A literature review on qualitative and quantitative perspectives. Maandblad voor Accountancy en Bedrijfseconomie 94(3/4).
Imagbe, V.U. Abiloro, T.O. Saheed, G.A. (2019) Fraud Diamond and Financial Crimes in Nigerian Banking Industries. International Journal of Academic Research in Accounting, Finance and Management Sciences, 9 (4).
International Cement Report. (2020) PPC: Zimbabwe cement sector needs support. https://www.cemnet.com/News/story/169064/ppc-zimbabwe-cement-sector-needs-support.html.
Ittonen, K. (2010). A theoretical examination of the role of auditing and the relevance of audit reports.
Kashona, S. (2019) The effectiveness of internal control and internal audit in fraud detection and prevention: a case study of Ministry of Finance, Namibia. The University of Namibia.
Khan, M. A. Stern, E. (2007). Auditing for social change in the context of the millennium development goals. Auditing for Social Change, 3.
Krambia-Kapardis, M. Papastergiou, K. (2016) Fraud victimization in Greece: room for improvement in prevention and detection. Journal of Financial Crime, 23 (2): 481-500.
Kusena, W. Marambanyika, T. Maswoswere, P. (2014) Overcoming environmental challenges in the cement manufacturing sector through cleaner production. A case of Sino Company, Zimbabwe. Ethiopian Journal of Environmental Studies & Management 7(5): 508 – 519, 2014.
Law, P. (2011) Corporate governance and no fraud occurrence in organizations: Hong Kong evidence. Managerial Auditing Journal, 26 (6): 501-518.
Lin, Z. J. Chen, F. (2004). An empirical study of audit ‘expectation gap in the People's Republic of China. International Journal of Auditing, 8(2), 93-115.
Ludmila N. Zanfir. (2020). Structural Components of the Professional Culture. Journal of Critical Reviews, 7(1): 361-364.
Macailao, M.C. (2020) The internal auditors beyond auditing norms. Journal of Critical Reviews, 7 (11).
Mahachi, G.L. (2018) Effectiveness of internal audit on organizational performance of NGOs: (case study of HIVOS Zimbabwe). Midlands State University, Gweru, Zimbabwe.
Mbohwa, C. Moyo, S. (2008) Life Cycle Assessment of the Cement Industry in Zimbabwe. 15th CIRP International Conference on Life Cycle Engineering, 2008.
Mhlanga, F. (2020) Zimbabwe: Cement giant has been discharging abnormal dust emission into the environment. https://www.business-humanrights.org/en/latest-news/zimbabwe-cement-giant-has-been-discharging-abnormal-dust-emission-into-the-environment/
Mohd-Sanusi, Z. Mohamed, N. Omar, N. Mohd-Nassir, M-D. (2015) Effects of Internal Controls, Fraud Motives and Experience in Assessing Likelihood of Fraud Risk. Journal of Economics, Business and Management, 3 (2).
Mouamer, F.M.A. Khalil, M.F. Amuna, Y.M.A. Aqel, A.M. (2020) Impact of Applying Fraud Detection and Prevention Instruments in Reducing Occupational Fraud: Case study: Ministry of Health (MOH) in Gaza Strip. International Journal of Academic Accounting, Finance & Management Research (IJAAFMR), 4 (6).
Tavakol, M. Sanders, J. (2014) Quantitative and qualitative methods in medical education research: AMEE guide No. 90. Medical Teacher, 36: 746-756.
Thakurta, S.G. Chetty, P. (2015) Understanding research philosophy. (Online) https://www.projectguru.in/research-philosophy/
The Institute of Internal Auditors Research Foundation. (2011). International Professional Practices Framework. The Institute of Internal Auditors Research Foundation 247 Maitland Avenue Altamonte Springs, FL 32701-4201. USA.
The Institute of Internal Auditors. (2017). International Standards for the Professional Practice of Internal Auditing. The Institute of Internal Auditors, Inc., Altamonte Springs, Florida, USA.
Tombs, M. Pugsley, L. (2020) How to understand research philosophies and paradigms in medical education. Centre for Medical Education, Cardiff University.
Vladimirovna, L.A. Vladimirovich, K.O. (2019). Conducting Audits in Small Enterprises and Assessing Their Compliance with International Standards. Journal of Critical Reviews, 6 (4): 79-83.
Xu, F. Akther, T. (2019). A Partial Least-Squares Structural Equation Modeling Approach to Investigate the Audit Expectation Gap and Its Impact on Investor Confidence: Perspectives from a Developing Country. Sustainability, 11(20), 5798.
Zamzami, F. Nusa, N.D. Timur, R.P. (2016) The Effectiveness of Fraud Prevention and Detection Methods at Universities in Indonesia. International Journal of Economics and Financial Issues, 6(S3) 66-69.
Zukauskas, P. Vveinhardt, J. Andirukaitiene, R. (2018) Philosophy and paradigm of scientific research. InTech Open.




How to Cite

Wadesango, N., Mutambira, P., Sistcha, lovemore, & Wadesango, O. (2022). A critical analysis of the impact of internal auditing on fraud detection in the cement manufacturing industry of Zimbabwe: impact of internal auditing on fraud detection . The Journal of Accounting and Management, 12(3). Retrieved from https://dj.univ-danubius.ro/index.php/JAM/article/view/1581