FORENSIC ACCOUNTING: CONCEPTS AND PROSPECTS OF APPLICATION IN UKRAINE

Abstract

The development of the economy, the consolidation of companies, and their activities lead to increased threats and risks associated with their operation. One of the biggest problems in this direction is the emergence of facts of corporate fraud; it is corporate crimes that pose a real and serious threat to the stability of any business. Fraud and theft of tangible property can lead to significant financial losses. Therefore, it is crucial to implement measures to prevent, detect and investigate financial crimes and respond immediately to illegal actions. The purpose of writing this article is to reveal the essential characteristics of the concept of "forensic accounting" to justify its use by businesses in Ukraine to prevent fraud. The article notes that after large-scale fraudulent schemes, corruption and financial fraud, the need for forensic accounting has increased both worldwide and in Ukraine, as evidenced by the interest of practitioners and the scientific community in the definitions of "forensic accounting" analyzed using Google Ngram Viewer (GNV) and provides economic crime statistics. An analysis of the existing definitions of "forensic accounting" and noted that some experts identify the concept of "forensic accounting" with "forensic audit". It is emphasized that forensic accounting is a set of control system measures, which, on the one hand, are aimed at preventing illegal actions committed by company officials, as well as to stop the abuse of office. On the other hand - they are aimed at investigating fraud, resulting from which the company's reputation was caused damage or significant financial losses. The comparative characteristics of audit and "forensic accounting" are given. It turns out that forensic accounting is an independent service in the system of expert services. The necessity of its development and application by business entities in Ukraine is substantiated. The main directions of forensic accounting are outlined, among which the prevention and investigation of fraud, support in court proceedings, corporate forecasting, IT investigations, compliance with anti-corruption legislation are highlighted.