Internal control system as a fraud management element in the company

Abstract

The article examines the internal control system as an element of countering and combating corporate fraud in the organization, analyzes the possible risks of malicious actions in the organization strategic areas. The methods of internal fraud management in the organization are proposed. Internal control is a set of methods whose task is to evaluate the results of the organization’s work, as well as control of the protection mechanism, which is aimed at preventing fraudulent actions, potential errors and violations. Internal control prevents falsification of accounting statements. Accounting and financial statements act as a link between organizations, investors, as well as other users of the organization’s reporting. The reliability of accounting and financial statements is a decisive factor in making important decisions, because its falsification leads exclusively to losses for investors. Organizations often provide falsified reports, having a desire to show a more advantageous financial condition, to raise funds or conclude successful contracts. Falsification is always carried out with violation of legislation and regulations.