مرکز منطقه ای اطلاع رساني علوم و فناوري - A SURVEY ON THE ROLE OF INTERNAL CONTROL PREVENTATION OF MISTAKES AND FRAUDS IN ACCOUNTING SYSTEM

Abstract :

Technological developments and the increase in the variety of commercial operations have raised the mistakes and frauds in accounting system. The mistakes and frauds in accounting system cause financial statement users to make wrong decisions by considering faulty and fraudulent financial statements. To prevent and to reduce the mistakes and frauds in accounting systems, an efficient internal control system should be set up and run. The presence of and efficient function of internal control system become issues with the new Turkish Commercial Code. This study is providing information on the implementation of the internal control system in businesses in the period before the adoption of Turkish Commercial Code, No.6102. In this study, a survey is conducted to determine the importance and the effect of internal control system to prevent the mistakes and frauds. The sample size of study consist of 45 enterprises that has internal control system operating in eight (8) provinces in various region of Turkey. The data has been analyzed using descriptive statistical methods. As a result, it is determined that an efficient internal control system has an effect on the prevention of potential faulty and fraudential processes in accounting systems of companies.