Forensic-Audit as an Imperative of Economic Security and Development of the Company in the Conditions of Global Transformations

Abstract

The article is devoted to topical issues of business protection through the prism of forensics (financial investigations). This new line of financial fraud and fraud investigation services is used to investigate and assist clients in identifying the facts and causes of fraud that may occur due to the absence or inadequate and ineffective system of internal control. The types of economic crimes faced by companies during 2017—2019 were analyzed and it was established that bribery and corruption are the leaders among economic crimes. The article reveals the essence of the concept of «forensic» as the identification of potential problems through legal and financial audit. Forensic procedures as a promising way to protect business in the context of global transformations and emerging cyber risks in an increasingly complex digital business environment have been studied. The article outlines the main directions of forensics in risk management, among which are: investigation of fraud; support in court proceedings; corporate intelligence; computer forensics; compliance with anti-corruption legislation, as well as to use preventive measures to prevent fraud. The classical methods and algorithm of financial investigation are outlined and it is noted that they may differ depending on the purpose for which forensics is conducted, the industry in which the company operates, and others. It is established that forensics for an economic entity ends with a reporting stage, during which the customer is provided with evidence of fraud, as well as the proposed recommendations. It is proposed to use the forensic mechanism when business owners: doubt an important decision; there is a leak of commercial information; mechanisms for working with suppliers have not been established; a large deal is envisaged.

Tax Audit to Ensure Business Prosperity: Trends and Perspectives

“…L. Bondarchuk, V. Burdeynyy [3] examines consulting services as a tool in business management. N. Bogomolova, V. Chernii [4], K. Nazarova, et al [5,6] investigate forensic services and anti-corruption audit in the system of guaranteeing the economic security of business structures in the conditions of global transformations. O. Shyrokopoyas [7] investigates the process of accounting for services in the field of business security.…”

Anti-corruption audit as an imperative of effective environmental management

“…Zarembsky [6], A. Marchenko [7], K. Naumchuk [8], O. Parkhomenko-Kutsevil [9], K. Rostovska [10], A. Sobakar [11], S. Timofeev [12], Y. Fidrya [13], L. Chizhevskaya [14], M. Shcherbak [15], Y. Mizik [16], A. Fadeeva [17], Yu. Slobodyanyk [18], D. Shkarovsky [19], K. Nazarova [20][21][22][23] and others. Analysis of the state and degree of scientific developments in foreign and domestic sources on the studied issues shows that corruption is not only a crime against the state and the citizen Y. Mizik [16], A. Fadeeva [17], O. Parkhomenko-Kutsevil [24], but also affects development of the system of subjects in the field of prevention and counteraction of corruption, which threatens the perception of legitimate actions of state bodies and security of citizens, negatively affects the reputation of public authorities, hinders the reform of the public administration system.…”

International trade risk management under the impact of globalization

“…At the same time, protection against risks for the company provides a number of advantages, including the ability to attract investment and development of the company, obtaining loans, increasing profitability, competitiveness and maintaining market positions. Nazarova K., Nezhyva M., Lositska T., Miniailo V., Novikova N. [8] claim, that topical issues of business protection through the prism of forensics (financial investigations). This new line of financial fraud and fraud investigation services is used to investigate and assist clients in identifying the facts and causes of fraud that may occur due to the absence or inadequate and ineffective system of internal control.…”