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Establishment of anti-fraud In addition, the purpose of the internal control system are;
ensuring that the assets of the enterprise are protected
systems, accounting and against the risk of fraud, ensuring the effective and
financial measures to be taken economic use of the company's resources, assisting in the
conduct of business activities efficiently and in compliance
with established policies.
Introduction
Therefore, an effective internal control system improves the
Fraud is a very basic management problem that many quality of the audit activities carried out in the enterprises
businesses are exposed to and which cannot be detected while reducing the time spent for the audit and enabling the
on time; when detected, they are passed on by individual enterprise to complete the audit process at a lower cost.
attitudes instead of taking systematic measures and
therefore, enterprises face serious repeated losses in later Effectiveness of the internal control system is important in
periods. Internal fraud is an important loss for businesses. ensuring transparency and fairness in business activities.
Company management should take necessary measures to An effective internal control mechanism does not allow for
prevent and detect possible abuses. misconduct to be carried out within the enterprise, thus
preventing the wrong decision of the management.
For this purpose, fraud risks should be identified, preventive
and revealing activities should be planned and fraud risk 2. Information technology regulations
and management should be made part of the enterprise's
corporate management. Additionally, setting up internal Today's fraud cases reveal the importance of technological
audit mechanisms is essential since it provides assurance on applications and data analysis programs in inspections for
the effectiveness of internal controls. detecting fraud. In traditional fraud detection methods, while
auditors review some of the data over the sample they have
Significant studies are being carried out globally on chosen from the main body, it is possible to examine all the
fraudulent transactions that are also called corruption and data with technological audit programs. Thus, the damage
abuse. The studies both help to determine the situation and caused by fraud is reduced or the fraud is discovered when it
reflect the expectations in the implementation of all kinds of is new. Thanks to these technology-based programs, multiple
prevention. In today's world, where cost analysis in the global files are examined at the same time and the possibility of
competition environment focuses more on cost savings, fraud is investigated by comparing the files that may be
the losses caused by fraudulent transactions have reached related to each other.
serious levels. The studies carried out in the US show that
the cost of fraudulent transactions to enterprises is around Conclusion
5% of operating income.
Corruption has the greatest impact on the disruption of
American researcher Donald R. Cressey features the element social moral structure. Legal gaps in the accounting system
of cheating under three main titles as a result of his research which is the basis for corruption should be eliminated by
on prison inmates. These may be defined as wannabe / legal regulations. With fraudulent accounting techniques,
opression / opportunities / justification. practitioners have found easy ways for corruption.
Considering the harm that these frauds do to the enterprises
The most common of these is “fraudulent financial reporting” and the society, it is necessary to employ honest persons
and it can be defined as the most effective type of fraud in and establish ethical rules in these enterprises while taking
terms of the damage imposed on the enterprise. It is handled measures such as establishing an effective internal control
as misleading the users of the financial statements by not system as well.
including the amounts and explanations required in the
financial statements or by recording them incorrectly.

Anti-fraud systems and accounting measures

1. Internal control system regulations

One of the most important tools in preventing fraud by
business management is the regulations of the internal
control structure. If there is any vulnerability or deficiency
in the internal control structure of an enterprise, we can say
that it provides an environment for fraud. In enterprises with
a strong internal control structure, the formation of fraud is
difficult. Even if fraud has been performed in enterprises with
strong internal control, it is easier to uncover and identify Explanations in this article reflect the writer's personal view on the
fraudsters. Business management should take various matter. EY and/or Kuzey YMM ve Bağımsız Denetim A.Ş. disclaim any
measures to prevent errors and frauds and to establish and responsibility in respect of the information and explanations in the
develop the necessary systems for this purpose. This system article. Please be advised to first receive professional assistance from
to be created by the management can be defined as the the related experts before initiating an application regarding a specific
internal control system. matter, since the legislation is changed frequently and is open to different
interpretations.

14 January 2020