RANI SIGNALI UPOZORENJA NA PRIJEVARE U POSLOVANJU PODUZEĆA

The topic of this paper shall is the scope of forensic accounting. Emphasizing of the new field of forensics, that is the forensic accounting, is caused by swift changes in the business environment and by sudden increase of number of frauds in business. In addition to the definition of forensic accounting, the paper shall demonstrate the term fraud and systemize the types of fraud by their groups. The subject of this paper are the indicators of business fraud warnings (“red flags”) which are a group of circumstances that are by their nature unusual or deviate from normal activities. These are signs which indicate the possibility of existence of fraudulent activities within an organization. They are not a proof of a fraud, but an impulse for investigation. It is important to be able to understand, recognize and use indicators not only by accountants, forensic accountants and auditors, but also by employees of the organization, through application of control systems and processes for the detection of indicators. It is important to raise awareness of recognizing early signs and to have a clear plan and protocol of reactions as well as the answer to the fraud. Indicators should not be ignored, but also sudden, too fast, inadequate or irrational actions should not be undertaken. The aim of this paper is to discover warning signs of fraud in business. The purpose of the paper is to emphasize and to understand the importance of recognition of signals of early warning of the possible fraud. Implementation and application of the system of early discovery and prevention of fraud is crucial for the shareholders, employees and the whole business community.