The Usage of Analytical SAS Tools in the Audit Practice for Risk Assessment

In a situation when the level of risk increases every day, and regulatory requirements are becoming more stringent, to monitor illegal activities, it is necessary to use advanced analytical tools. Automation of the processes for risk assessment in the era of the digital economy is the key of success for any audit firm, as this will reduce labour and time costs and constantly improve its system for the risk detection of any kind and the submission of reliable information as a result of its activities. SAS offers the best-of-a-kind solution that includes high-performance analytics and combination of detection methods of irregularities, which help to monitor a larger number of risk factors, particularly analyzing large data volumes – in minutes instead of hours

Revisiting the Application of a Risk-Oriented Audit Approach

This paper discusses the basic understanding of auditing, implemented using approaches and risk management techniques. It emphasizes that such an approach requires the system consideration at all stages: at the stages of planning, collecting audit evidence and completing the project, including the preparation of an audit opinion. Aside from that, the paper presents audit procedures for all phases of the audit which is implemented with account of the risk-oriented approach. The analytical part and the conclusions drawn at end of the work are based on a large number of literature data

FATF Guidance on Effective Oversight in the AML/CFT System

Fourth round of mutual evaluations of the FATF (financial action task force on money laundering, the Financial Action Task Force on Money Laundering, FATF) was held already in 38 countries around the world. In 2018 Russia will be cheсked.One of the elements of anti-money laundering system is the oversight activities. FATF gives guidance on its effective building. It should be provided with the risk-oriented approach. On the one hand, in order to apply its limited resources to the most dangerous areas. On the other hand, does not interfere the development of legal entrepreneurs with redundant oversight actions.The purpose of this article is to attract attention of specialists for financial monitoring to Guide FATF on the application of risk-oriented approach to oversight for AML/CFT purposes. Keywords: Legalization, countering the financing of terrorism, supervision in the sphere of AML, risk-oriented approac

Problems of Data Collection for the Application of the Data Mining Methods in Analyzing Threshold Levels of Indicators of Economic Security

Determining threshold values of key economic security indices describing an economic situation in any country is an important stage in the assessment of the country’s economic stability. A research was undertaken to determine how this problem can be effectively solved with such Data Mining algorithm as decision trees. According to the results of the research the effectiveness of the method was proved, but only with sufficient amount of data available. However, such data collection has a number of significant problems. These problems can be attributed to the following factors: the data for the analysis are presented with varying frequency, there is no possibility to use data over longer time intervals, the lack of a common list of indicators of economic security, which are used in different countries. The purpose of this paper is to analyze the existing problems of the data collection and to submit proposals of solving them. Keywords: Economic security, Issues of data collection, Data Mining, thresholds

Optimization of Taxes as a Factor of Money Laundering

The optimization of the tax base remains a serious challenge for any business entity. At the same time, the challenge to keep economic activities in the legal field remains no less urgent. This paper deals with the issues of optimizing profit tax. Such methods of the tax optimization as the creation of various reserves, depreciation savings, leasing operations are analyzed. Special attention is paid to such negative phenomena as predicate offences. Their features are described, as well as the possible consequences of their commitment.

Development of a Process for Detecting Inconsistencies between Financial Statements and Financial Transactions (Deals) Aimed at Identifying Signs of Money Laundering

The problem of money-laundering is still valid in the Russian Federation. With the increasing role of the State in the economy, this question becomes particularly significant. Of course, monitoring of the funds movement plays a significant role, in particular, for companies, recipients of budgetary funds, including providers of the State Defense order (GOZ).To date, there is no generally accepted method, which would allow a high degree of probability to identify signs of money laundering.This article first describes how to detect signs of money-laundering on the basis of a comparison of the data of financial statements with bank operations data.Elaborated process was tested on the example of relevant data of thirty businesses complying with orders under the contracts with the Ministry of Defence of the Russian Federation in 2013.On the basis of the obtained results recommendations for the improvement of the elaborated process were formulated and the scope of its possible use was identified. Keywords: money laundering, the process approach, fraud, financial reporting

The Research of Automation of the Process of Indexing Tax Returns

The article is devoted to the study of the automated search for information on tax declarations of different countries in public sources of various structures and the collection of information received in a single information storage. The first part of the paper describes methods of automated data collection and tasks that can be solved by these methods. The second part of the work describes the development of an algorithm for finding data on tax declarations from various sources and creating a prototype system that implements the data of the algorithm and provides access to the collected data. Keywords: search systems, indexation of tax declarations, information retrieval system

Import Substitution Production of Semiconductor Silicon in Russia as a Tool to Reduce the risk of Money Laundering

The work is devoted to studying the need of creation a domestic production of polycrystalline, monocrystalline silicon and silicon wafers for the purposes of electronics and solar energy in the Russian Federation, as a part of the solution of a number of strategic objectives. In addition, the work discusses the question of import substitution as a means of combating money-laundering. Keywords: semiconductor silicon, polycrystalline silicon, monocrystalline silicon, import substitution, money launderin

Risks Evaluation of Financial-Economic Activity and Their Management in the System of Economic Security of the Organization

Organizations increasingly need to improve approaches to enterprise management in connection with regularly occurring crisis phenomena in the modern economy. Any business entity must ensure timely reaction to changes in the external environment in order to avoid risks and threats to economic activity and to achieve the set goals. Well-organized management system of enterprise economic security can become a guarantee of this. Keywords: economic security, risks, financial and economic activity of the organization, audit, accounting, accounting (financial) report

Issue of Money Laundering Risks Identification in the Activity of the Organizations and Individual Entrepreneurs Engaged in the Mining, Production, Use and Circulation of Precious Metals and Precious Stones

This article is distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use and redistribution provided that the original author and source are credited.Identification of money laundering risks in the sector of precious metals and precious stones is an important element in building an effective risk-based approach of money laundering risk assessment in the country. The article describes a mechanism of information exchange used in risk assessment of the organizations and individual entrepreneurs engaged in the mining, production, use and circulation of precious metals and precious stones. The mechanism is based on modern digital technologies such as a user’s cabinet on the Federal financial monitoring service website. The risk-score is obtained as a result of the analysis of the information contained in the database of Rosfinmonitoring, as well as monitoring and oversight activities conducted by Federal state institution «The risk-score shall be provided to all subjects of the sector allowing them to quickly resolve the shortcomings in their activities. Keywords: money laundering risk, sector of precious metals and precious stones, big data, information exchange, risk assessment, internal control