Employee dishonesty is one of the major contributory factors resulting in major losses to companies that usually remain undetected by Internal Auditors. The purpose of this project study is to look into the problems encountered by the internal auditors of the Norkis Group of Companies in establishing legal cases and the effectiveness of their conduct and behavior during audit engagements and operational review with the end view of making a proposal for intervention to the Management. The research method used was the descriptive method, particularly the normative survey and the main data collection instrument is the research questionnaire. From the findings, it is concluded that the internal auditors of the Norkis Group of Companies have problems in establishing legal cases particularly in cases involving employee fraud and those committed by Accredited Display Center Owners. It is further concluded that while they are effective with regards to their conduct and behavior during audit engagements and operational reviews, these do not translate to their ability to establish and file legal cases; hence, intervention is needed.