Prevention as the Key Measure in Financial Frauds
international Scientific Conference “Archibald Reiss Days,” Thematic Conference Proceedings of International Significance, Volume I, Academy of Criminalistic and Police Studies, Belgrade, 2016
10 Pages Posted: 4 Nov 2016
Date Written: March 13, 2016
This paper considers the key system measures which can prevent financial frauds. Financial frauds prevention is crucial part of organized economical system and it materializes through the structures of controls. System of the structures of controls is called “three lines of business security” and its establishing and functioning has significant benefit for the economic system as a whole. All the elements of the structure need to function on their own and mutually in order to achieve business security. Functioning of modern states and economies relate to the gathering of reliable information in respect to the principal of cost efficiency and the functional “three lines of business security” system can contribute to that aim. What is the benefit of the “three lines of business security” model? The most important contribution of the model is that it can provide business security to all the participants in the economy. What is more, it can contribute in drawing of foreign investments, since business security is fundamental principle of attracting investors into the state’s economy. Therefore, efficient system where the “three lines of business security” function properly can contribute to the national economics in total and at the same time to be part of the efficient system of financial fraud prevention.
Keywords: Three lines of business security, economic system, legal system, internal controls, external controls, investigation, coordinating, functioning
JEL Classification: K13, M49
Suggested Citation: Suggested Citation