Methodological principles of economic crime prevention within trade enterprises’ internal audit system
Journal Title: Вісник Житомирського державного технологічного університету. Серія: економіка, управління та адміністрування - Year 2019, Vol 88, Issue 2
Abstract
The purpose of the article is the substantiation of organizational and methodological principles of economic crimes preventing within internal audit system of a trade enterprise. Methodology. Methodological and informational basis for the research became scientific works, periodic materials, Internet resources, Ukrainian legislation, Basel Committee recommendations and internal audit international standards. Results. It is proved that the effective internal audit system is the key factor for successful corporate governance implementation, one of the most important aspects of which is related to financial supervision. It is determined that the most common type of economic crimes for trade enterprises is the appropriation of property by stealing goods. The economic crimes that arise in the activity of trading enterprises are systematized by the following groups: financial (illegal appropriation of property, tax evasion, insider trading); mixed (falsification of documents, bribery and corruption, kickbacks); official (intellectual property rights violation, corporate espionage, unethical corporate behavior). It is proved that necessary condition of owners’ rights protection is appropriate accumulation of reliable information concerning the use of property in economic activity of a commercial enterprise, which could be achieved within accounting system. It is substantiated that insider trading is not only transactions that have an impact on a company's shares price, but it is also trade in closed information, that affects trading companies’ resources and stability and is carried out by its employees. Practical implications. The author developes a sequence of internal auditor’s actions during the audit: the analysis of bribery facts, kickbacks and financial corruption violations that arose in a trading enterprise past activity; the identification of signs of possible schemes of conspiracy to steal trading company property, as well as the level of employees’ corruption and bribery inclination; the analysis of internal regulatory documents on combating of corruption, repatriation and bribery within a trading company, and developing recommendations for senior management on those document content and form improvement. Value/originality. In order to minimize the potential external and internal risks that may result in financial economic crimes and inaccurate display of information on commodity and other transactions in the accounting system, the detailed program of forensic audit of economic crime prevention is developed.
Authors and Affiliations
A. O. Semenets
Keywords
Related Articles
- EP ID EP634255
- DOI -
- Views 154
- Downloads 0
Architecture and attributes of innovation infrastructure
The innovation constituent of development is the most important element of the transition from industrial to the post-industrial type of society. The innovation infrastructure is one of the most important factors of the...
Forecasting methods of agricultural enterprise failure probability
The article suggests the main evaluation models of enterprise failure probability. The advantages and disadvantages of enterprise failure probability multifactor models are determined. The author offers the agricultural...
Impact of international financial assistance on economic growth in Europe after the World War II
This research is devoted to studying the impact of international financial aid on economic growth in Europe after the Second World War. The aim of the investigation is the identification of regularities of post-war recov...
Forecasting of socio-economic phenomena as the instrument for managerial decision substantiation
The article is devoted to the definition of the role of forecasting in the enterprise’s management. It is determined that forecasting forms the information basis for managerial decisions substantiation, as it provides pr...
Modern tendencies of the administrative accounting introduction using world experience
The article is devoted to the research of foreign experience of organization and management of accounting in enterprises. Today, significant changes in the conditions of the economy, which occur in the country’s economy,...