Financial Fraud Prevention and Monitoring from the Perspective of Internal Control

Abstract

Financial fraud has become a critical concern for corporate management as the global economy has grown in complexity and enterprise scale. Financial fraud not only directly threatens the economic interests of businesses, but it also harms market trust, shareholders' rights and interests, and has a detrimental influence on the overall health of the economy. This paper is dedicated to exploring the multifaceted domain of financial fraud prevention and monitoring through the strategic lens of internal control. Functioning as a linchpin within an organization's internal framework, internal control assumes a paramount role in thwarting and vigilantly overseeing instances of financial malfeasance. A meticulous analysis of the intricate concepts, principles, and frameworks inherent in internal control forms the crux of this study, aiming to unravel the specific applications that bolster its efficacy in preventing and monitoring financial fraud within the organizational milieu. By shedding light on these intricacies, the paper contributes to a deeper understanding of how internal control serves as a proactive safeguard against the intricate challenges posed by financial fraud.