FRAUD MECHANISMS - ACCOUNTING AND FISCAL EVALUATION - SEEN AS POSSIBILITIES FOR ESTIMATING THE UNDERGROUND ECONOMY

Abstract

The interrelationship between activities specific to the shadow economy and those specific to corruption is obvious and long-noted between academia, numerous authors, and international institutions. A deeper understanding of this economy can help to provide a basis for the behavioral analysis of those who are prone to fraud, so that opportunities for manifestation are limited by the creation of effective control mechanisms. The research issue, therefore, proves to be useful and front-runner to new directions for further development, taking into account its importance, timeliness, significance, and necessity, for financial management, both public and private, for accounting and tax professionals, and for any person interested in the harmonious good-boarder development of the society we live in. Statistical estimates are drawing strong alarm signals in global economies, where we are dealing with huge proportions of the “underground†economy, with estimates of up to half of the economic activity carried out. It is noted that the global trend toward macroeconomic modeling in the area of measuring the “shadow†economy is present. One example, which comes to support this idea, is our own country. According to the information provided by the National Statistics Institute, 20% share of the “underground†economy in GDP, while some specialists, including the Romanian Intelligence Service, estimate a 45% share of the “underground†economy. The differences are colossal and come to broaden the line of arguments that are not suitable for measuring the economy of this kind and its relevance.