Risk-Based Investigative Auditing as a Strategic Tool for Detecting Procurement Fraud in Public Sector Entities

Procurement fraud is one of the most prevalent forms of corruption in public sector organizations, often resulting in significant financial losses and undermining public trust in government institutions. The complexity of procurement procedures and the involvement of multiple stakeholders create opportunities for fraudulent activities such as bid rigging, collusion, bribery, and manipulation of procurement documents. Therefore, effective auditing mechanisms are required to strengthen fraud detection and ensure accountability in public financial management. This study aims to examine the role of risk-based investigative auditing as a strategic tool for detecting procurement fraud in public sector entities. The research employs a quantitative approach using survey data collected from auditors and financial supervisory officials involved in procurement monitoring within public sector institutions. The data were analysed using descriptive statistics and multiple regression analysis to evaluate the relationship between risk-based investigative auditing and procurement fraud detection. The results indicate that the implementation of risk-based investigative auditing has a positive and significant effect on the effectiveness of procurement fraud detection. The integration of risk assessment procedures with investigative auditing techniques enables auditors to identify high-risk procurement activities, prioritize audit procedures, and detect fraudulent transactions more efficiently. Furthermore, the findings highlight the importance of strengthening internal control systems and adopting data analytics tools to enhance investigative auditing practices. This study contributes to the development of auditing and fraud detection literature and provides practical implications for government auditors and policymakers in improving procurement oversight mechanisms. The findings suggest that the adoption of risk-based investigative auditing can significantly enhance transparency, accountability, and integrity in public sector procurement systems.