Internal control, corruption and money laundering

Luminiţa IONESCU, Mary POWER

Abstract


The global financial crises created a different context for the economic growth and globalization. In the last few years, five risks have been designated as “risks to watch”, as survey respondents assessed them with high levels of variance and low levels of confidence while experts[1] consider they may have severe, unexpected or underappreciated consequences: cyber-security, demographic challenges, resource security, retrenchment from globalization, weapons of mass destruction. Strongly connected to these risks others are important to analyze: corruption, illegal trade and money laundering. There is a strong relation between corruption and money laundering. During the economic crunch the level of corruption and fraud had scientifically increased.

Internal control could be a good instrument to reduce corruption and to stop the illegal trade and money laundering. Internal control is a dynamic integral process that is continuously adapting to the changes an organization is facing

[1] www.weforum.org – The Global Risks Report 2010-2011.


Keywords


Internal control, corruption, money laundering

Full Text:

PDF

References


. COSO, Internal Control over Financial Reporting. Guidance for Smaller Public Companies, Vol. 1, 2006, p. 3.

. COSO- Internal Control, Integrated Framework, Guidance on Monitoring Internal Control Systems, 2009, p. 5.

. Chaikin, D. and Sharman, J.C. (2009), “Corruption and Money Laundering:A Symbiotic Relationship”. New York: Palgrave Macmillan, p. 45.

. DiRienzo, C. et al. (2007), “Corruption and the Role of Information,” Journal of International Business Studies 38: 320-332.

. Ionescu, L(2008), “Internal Control, Public Accountancy and Organization Culture”, Denbridge Press, New York, 2008.

. INTOSAI, Guidelines for Internal Control Standards for the Public Sector, p. 6.

. KPMG, Internal Control: A Practical Guide, Service Point, October 1999, p. 15.

. Olsen, W. P. (2010), “The Anti-Corruption Handbook. How to Protect Your Business in the Global Market Place”, John Wiley & Sons, Inc., Hoboken, New Jersey

. Svenson, J(2003), “Who Must Pay Bribes And How Much? Evidence From A Cross Section of Firms”, The Quarterly Journal of Economics, MIT Press, vol. 118(1),

p. 207-230.

. Treisman, D(2000), “The Causes of Corruption: a cross-national study”, Journal of Public Economic 76(2000) p. 399-457.

. www.weforum.org – The Global Risks Report 2010-2011.




Copyright (c) 2011 author

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.


As to respect GDPR, this site do not allow free registation. Please contact us at: ashues@spiruharet.ro

GDPR Policy:

Please read the statement below:
Processing of personal data and free movement of these data

Registering with this site the author agree with the collection, processing and use of his personal data, exclusively within the ASHUES journal.


 

AWARDS 

WILL BE CONFERRED AT THE END OF THE YEAR

To crown and encourage research efforts of the authors, at the end of a year of publishing our journal board will award online the best papers by distinctions:

1. Best Original Paper Award -  for the paper that has brought something completely new in the reader's attention (a new concept, a new trend, a new proposal in research, etc.)

2. Excellence Award - for the most cited paper and visualized in the online environment during the year

3. First, Second and Third Award- for the best documented and substantiated papers during the year

4. Special Award - to award PhD students and postdocs for the most well documented and substantiated paper


Administred:Rocsana B. Manea Tonis

http://icourses.wix.com/itmk