Hile Denetimi

An employee’s (including senior management) gaining unfair gain by deliberately using or acquiring the resources and assets of the enterprise s/he is within its body is defined as employee fraud. The purpose of the fraud audit is to determine whether the employees in the business have deliberate acts involving deception in order to gain illegal benefits.

According to the researches, fraud in businesses is increasing both in frequency and amount:

  • In general, 10 percent of the employees cheat on a planned basis, and 75 percent of them tend to cheat if the opportunity arises.
  • Economists estimate that businesses in Turkey lose 8-10 percent of their annual income (this rate is 6% in the US) due to fraud.
  • The average time for businesses to reveal employee fraud is 16 months.
  • 50 percent of frauds occur due to poor internal controls.
  • 70 percent of the frauds are done by employees of at least 4 years and over.

It is possible to list the main conditions that allow fraud in businesses as follows:

  • Ineffective corporate governance, weak “Peak Effect”
  • High level of incentives for financial success
  • Complexity in the rules, regulations, and policies of the business
  • Unrealistic budget targets imposed on employees
  • Poor information flow among employees
  • Inability to evaluate the quality of work carried out by employees
  • Insufficient internal control
  • Failure to obtain a healthy independent external audit service

The world is aware of the importance of fraud auditing and fraud auditing has become an expertise in itself. In our country the employers has recently begun to notice the importance of this issue. It is of great benefit for businesses to establish the necessary internal control systems against employee fraud and get independent external audit support.

In the company, if:

  • there is a concern about cheating,
  • some managers or employees are thought to have a higher quality of life than their salaries,
  • it is desired to determine the risk of fraud by evaluating internal controls,
  • it is desired to establish internal controls against fraud risk,

fraud auditing is required.

We approach the cases with the thought that there is no small and unimportant fraud. Material damage that appears at first glance in fraud cases is usually the tip of the iceberg. Much greater abuses may be behind the acts of frauds that appear to have been saved with minor financial losses.

In fraud auditing, we conduct studies to prevent fraud, investigate and determine possible damage to the business. Our aim in prevention service is to detect the weak sides of the organization against fraud, to prevent possible abuse and fraud and to deter the cheater. Prevention activities, which are the most important, most effective and economical method of combating fraud, consist of the preparation of corporate ethical principles, the establishment of fraud prevention policies, and the provision of fraud awareness trainings.

Through Irregularity Inspections, we ensure that internal controls operate more effectively, so that errors and frauds that may occur in the business are revealed more effectively or that errors or frauds are prevented from occurring.

Independent Audit of Financial Statements

Preparation and/or Audit of Corporate Reporting Package

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