Abstract
As the study shows, an urgent issue for businesses today is the problems of corporate fraud and the counteracting measures. Despite the continuous development of internal control and audit systems, business losses from fraud in enterprises are growing every year. The risks of fraud are growing in an inefficiently controlled environment and it is not enough to use standard audit methods to detect fraud. Therefore, it is vital to study the issues related to the organization of an effective system of countering fraud. Taking into account the existing experience and world experience in counteracting this negative phenomenon, a study is conducted to establish an internal security and anti-fraud system at the enterprise and it is proposed to create the Financial Investigation Agency at the enterprise itself, which includes services: information and analytical control, internal audit, financial investigations and psychological prevention of violations. This will streamline the work of the internal security service, create and implement control procedures, redistribute the powers between the units of the enterprise at different levels. The tables of abuse indicators and the structure of the library of typical schemes of abuse in the article allow to adapt to the work of new employees of the internal audit service, regardless of their experience, reduce the risks of key business processes and improve their effectiveness; they can be used to identify, rank and assess potential risks of fraud.Research results shows that one of the departments of fraudulent activities is the department of finance and accounting and one of the types of financial fraud is the falsification of financial statements, which is extremely difficult to identify and prevent, in addition to deliberate distortions, there are distortions that are the result of conflicts of professional judgment on the application of regulations and accounting regulations. The article examines the risks that can arise from fraudulent financial reporting, and the knowledge of which will counteract this type of fraud.
Highlights
The business environment in which businesses operate is characterized, on the one hand, by growing globaliza tion, increased control over compliance with legislation and responsibility to society, and on the other – eco nomic risks, one of which is corporate fraud and whose trend is worldwide, including in Ukraine, is sustainable and red uce to: 1) theft of assets; 2) corruption; 3) manipulations with reporting and accounting da ta.The ACFE study conducted in 2016 showed that in 23.2 % of cases, fraud losses in enterprises were $ 1 mil lion
The longer the period of fraud lasts, the more serious the financial damage from and the losses grow proportionally to an increase in this, so the schemes that lasted more than 5 years led to losses of $ 850000, it is indicated that 2/3 of the cases, which became known, related to the closed or open joint-stock companies [1]
According to KPMG research in 2016, most corporate crimes are provided by the Corporate (Financial) Security Service of the enter prise, and only 6 % of abuses are by the Internal Audit Service [3]
Summary
The business environment in which businesses operate is characterized, on the one hand, by growing globaliza tion, increased control over compliance with legislation and responsibility to society, and on the other – eco nomic risks, one of which is corporate fraud and whose trend is worldwide, including in Ukraine, is sustainable and red uce to: 1) theft of assets (typical schemes of Ukrainian com panies are theft of money, assets, other illegal actions with assets); 2) corruption (manifested in obtaining undue bene fits as a result of abuses with receivables and payables, fraudulent discounts, overwhelming payment of bills in favor of counterparties); 3) manipulations with reporting and accounting da ta (for Ukraine are not so common, as a rule, manipula tions occur because of the desire to appear better in the eyes of the investor, bank or shareholder). It is vital to study the issues related to the organization of an effective system of countering fraud
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