FRAUD IN DOMESTIC COMPANIES: TYPES, FACTORS OF ORIGIN, PROFESSIONAL SCHEMES AND MEASURES OF STRUGGLE

Abstract

In the article the author considers the actual issues of fraud in domestic companies of various sectors of the national economy. The purpose of this study is identification and subsequent analysis of the factors, sources, methods and means of implementing fraudulent schemes at domestic enterprises, taking into account foreign experience; developing mechanisms for counteracting fraud-risks taking into account the specifics of activities. The data of international organizations on the issues of fraud, its factors, sources, and the most widespread professional schemes in the countries of Eastern Europe and Western / Central Asia are analyzed. In the course of the research, the unsystematic and non-controllable process of risk management at enterprises was identified, which could, if effective risk management is as low as possible or completely leveled, which in future generates fraud risks. According to the ACFE study, an interesting example of European anti-fraud experience is the availability of a hotline, which almost 2 times increases the effectiveness of detecting fraudulent schemes through unofficial sources of information. The author proposes the inclusion of fraud-risk management issues in the "Concept of Enterprise Risk Management" as the main document regulating risk management in the company. The most common causes of fraud in domestic companies are the unconscientiousness of employees and unwarranted costs. Particular attention deserves a discrepancy between real practice and perceived effectiveness, namely: more active use of the annual audit of financial statements and the involvement of the owner in operational management as a means of fighting fraud. Based on the study of mechanisms for counteracting fraud in domestic companies with experience of fixing fraud in the past, an annual examination is proposed, taking into account the specifics of the functioning of domestic companies.