In the course of an audit engagement, internal auditors must make numerous judgments and express an opinion on the basis of information collected and test results that are never perfectly diagnostic with respect to the underlying economic state of the firms. Thus, the ability of auditors to process information in audit-related tasks has recently become the subject of research. And research can significantly assist the profession in evaluating the effectiveness of internal auditors’ duties, and pursuing continuous future improvements of them. Importantly, one significant reason that senior management is frequently involved in fraud cases is that often a portion of their compensation is based on reported results. This paper, therefore, is expected to provide a number of benefits to the firms that suffered long term damage to its tangible assets due to unscrupulous employees, by considering aspects of deterrence, detection, investigation, and reporting. This study confirms that strong commitment to ethical behaviour from top management which is supported by actions as well as words is sufficient to prevent ethical wrongdoing. Rather than using their talents exclusively to investigate allegations of fraud once they have been reported, antifraud specialists also should be involved during the audit itself to help identify key risk areas, which then can be furnished to the auditors for further consideration. Moreover, the mere presence of antifraud specialists during audits could have a significant impact on increasing the perception that illegal activity will be detected.