EFFECTIVENESS OF EXTERNAL AUDITING AS A TOOL FOR CONTROLLING FRAUD AND OTHER MALPRACTICES IN THE PHARMACEUTICAL INDUSTRY

This study investigated the effectiveness of external auditing as a tool for controlling fraud and other malpractices in the pharmaceutical industry. The study specifically examined the relationship between traditional auditing and fraud and other malpractices control in a pharmaceutical company; and it also examined the relationship between forensic auditing and fraud and other malpractices control in a pharmaceutical company. The study adopted survey methods and both descriptive and inferential methods were applied to analyze the data collected for the study. Result shows that there is significant relationship between traditional auditing and fraud control in corporate organisations; and that there is significant relationship between forensic auditing and fraud control in corporate organisations. The study made recommendations based on findings that external audit unit should engage additional audit staff training should be trained or sacked, if not trainable; that management should ensure that all the features of effective audit unit like audit structure, resources and audit plan are properly put in place, sound and effective; and that management should ensure that audit competency and auditors' independence is appropriate.