Scientific review article
DOI: 10.5937/bankarstvo2101066K
Received: 25.01.2021 Accepted: 11.02.2021
Bankarstvo, 2021, vol. 50, Issue 1
THE ROLE AND IMPORTANCE OF INTERNAL CONTROL AND INTERNAL AUDIT IN THE PREVENTION AND IDENTIFICATION OF FRAUDULENT ACTIONS IN BANKS Snežana Knežević, PhD, Faculty of Organizational Sciences, University of Belgrade, professor, email: snezana.knezevic@fon.bg.ac.rs Aleksandar Živković, Faculty of Economics, University of Belgrade, full professor email: aleksandar.zivkovic@ekof.bg.ac.rs Stefan Milojević, Audit, accounting and financial consulting company - Moodys Standards doo Belgrade, Assistant at the Faculty of Finances, Banking and Audit, Belgrade, email: info@moodys.rs
Summary Modern banks have a specific role and a whole range of functions of paramount importance, as financial institutions for granting loans, creating loans, mobilizing savings and economic development. In the financial sector, there is a growing number of people who are using increasingly innovative and creative ways of targeting all perceived weaknesses in banks and credit approval systems. The persons committing fraud have become increasingly sophisticated, which means that measures to prevent fraud must be constantly developed to ensure that they are able to deal with the threat. The fight against fraud is crucial for financial services institutions. This article aims not only to briefly describe the role of internal control and internal audit in detecting possible fraud in banks, as profit-oriented organizations in today’s complex and highly changing business environment, but also to point out the advantages they have in the more efficient management of bank activities. Keywords: bank, fraudulent action, internal control, internal audit, efficiency
JEL Classification: M42, G21.
78
