Improvement of the internal audit process of fraud identification in the system of joint-stock companies corporate management Cover Image

Удосконалення процесу внутрішнього аудиту ідентифікації ознак шахрайства в системі корпоративного управління акціонерним товариством
Improvement of the internal audit process of fraud identification in the system of joint-stock companies corporate management

Author(s): Oleksandr Smetanko
Subject(s): Economy
Published by: Інститут трансформації суспільства
Keywords: Fraud; Internal Audit; Corporate Management; Triangle of Fraud; Identification of Fraud

Summary/Abstract: Introduction. The complexity of the process of identification of fraud indicators in the system of corporate management requires additional research aimed at the improvement of the internal audit process of identification and responding to risks of fraud, by indexes of a value-based system of joint-stock company management. The purpose of the article is to improve the internal audit process of fraud identification and to respond to risks of fraud in the system of corporate management of the joint-stock company. Methods. The author has applied general scientific methods (induction, deduction, synthesis and analysis) and methods of audit. Results. The algorithm for the internal audit process of fraud identification and responding to risks of fraud by indexes of the value-based system of joint-stock company management suggested in the article allows internal auditors to identify fraud, to investigate its causes in the system of corporate management of partnership taking into account the factors of external and internal environment that influence the subjects of fraud. The model of elements of fraud identification was developed for the purpose of internal audit that implements the most effective methods and mechanisms of detecting fraud signs, which allows internal auditors to obtain the necessary evidence in the process of applying of fraud identification procedures by means of auditing and responding to risks of fraud in the system of corporate management. Conclusions. The algorithm of internal audit process of fraud identification, when applying the model of identification of elements of fraud proposed in the article, allows internal auditors: 1) to build an effective system of monitoring related to detection of fraud and its prevention in the system of corporate management of the joint-stock company; 2) to respond to fraud risks by indexes of the value-based system of joint-stock company management; 3) to research elements of fraud and establish their cause in the system of corporate management taking into consideration all factors of the external and internal environments that influence fraud perpetrators; 4) to define additional indicators of corporate fraud and its types; 5) to develop a set of measures (mechanisms) of fraud prevention and its countering.

  • Issue Year: 2015
  • Issue No: 9-10
  • Page Range: 107-110
  • Page Count: 4
  • Language: Ukrainian