Forensic Audit as an Effective Means of Combating Internal Corporate Fraud During Wartime

Abstract

In times of military conflict, internal corporate fraud schemes grow rapidly, leading to serious financial losses and threats to the reputation of domestic enterprises that already operate in a difficult and unpredictable environment. A key tool for ensuring the financial stability of domestic enterprises, fighting corruption and maintaining law and order in the country should be the use of forensic audit methods. The purpose of the study is to substantiate the importance and necessity of forensic audit as a means of counteracting internal corporate fraud during the war, to establish its role and place among other forms of control, and to define and describe the methods of its implementation. The article analyses the primary sources of the concept of "forensic audit". The reasons for the emergence of intra-corporate fraud in 2023 are investigated and their typology by type is developed: information fraud; offences committed in connection with access to property; financial fraud; corruption offences. A rating of crimes and offences committed by internal corporate fraudsters has been formed, namely: "Misappropriation, embezzlement or seizure of property through abuse of office"; "Bribery of an official of a legal entity of private law regardless of its legal form"; "Failure to take measures to combat corruption"; "Falsification of financial documents and reports of a financial organisation"; "Illegal use of insider information". It is proved that in order to ensure financial security and prevent economic offences for various business entities, it is necessary to use modern innovative methods and tools to counteract internal corporate fraud, the most effective of which is currently forensic audit. The author suggests that forensic audit is understood as the process of systematic research of financial information, documents and electronic data with a view to identifying, analysing and documenting possible financial crimes, misconduct or violations in business practices. The author defines the place of forensic audit among other forms of control and proves that it combines the provisions of audit and forensic accounting. A continuum of forensic audit methodological techniques has been developed. The stages of forensic audit are defined, namely: planning and organisation; collection and analysis of information; expert assessment; interviews and questionnaires; analysis of electronic data; preparation of a report on the results of forensic audit and recommendations; support in judicial procedures.