Fraud audit is the type of audit that is assumed to contain fraud and is approached with prejudice to reveal fraudulent transactions instead of expressing an opinion on the compliance of financial statements with generally accepted accounting principles and policies, as in independent auditing.
Possible transaction and accounting irregularities in companies are beyond penal sanctions, especially company partners; It also causes damage to the state, creditors and parties that have commercial relatio Financial Statement Auditns with the enterprise. In addition, the fact that the financial statements are not prepared in accordance with the accounting procedures determined by the law and that they are different from the real financial situation of the enterprise may cause significant losses.
It is important that the audit of whether there is a decrease in the company's assets due to irregularities is carried out by independent, impartial people who have knowledge and experience on this subject.
Fraudulent financial reporting may occur when the management manipulates the profit of the entity in order to mislead them by influencing the perceptions of the users of the financial statements about the performance and profitability of the firm. Such manipulation of profits can be initiated by small transactions or by inappropriate assumptions and changing opinions by business management. Pressures and incentives can lead to increased these activities, resulting in fraudulent financial reporting. This may result in fraudulent financial reporting, where management materially misrepresents the financial statements in order to meet market expectations or maximize performance-based compensation.
Misappropriation of assets involves the theft of a business' assets and is usually carried out in relatively small and insignificant amounts by the company's employees. However, abuse can also be committed by business management, in which case these transactions are much more difficult to uncover as they can be well concealed.
Misappropriation of assets often involves the making of false or misleading records and the issuance of false documents to hide the loss of assets or the unauthorized pledge.
WHAT IS DONE IN FRAUD AUDITING?
In fraud auditing, studies are carried out to prevent fraud, investigate and detect possible damage to the enterprise. The purpose of prevention service; It is to prevent possible abuses and frauds by identifying the weak sides of the company against fraud. Prevention activities consist of preparation of company ethical principles, creation of fraud prevention policies, provision of fraud awareness trainings and services. Prevention activities are the most important, most effective and most economical method of struggle against fraud.