Volume 1 (2021): Issue 2 (December 2021)

The primary purpose of this work is to provide an overview and comparative analysis of various Information System Audit Quality measures, as well as to test the validity of the chosen measurement scale empirically. In this regard, a thorough literature study was undertaken, followed by primary empirical research, and the reliability and validity of the measurement scale were tested. Based on the identified papers, a questionnaire was created and evaluated by a panel of experts. Following that, data was collected from respondents who were either managers inside the organizational unit responsible for information technology or those designated as adequate by the heads of IT departments.

Fraud has existed throughout history. Yet, it is estimated that today's occurrence has a huge impact on global revenues, highlighting the importance of fraud examination and forensic accounting. Although the roles of the two disciplines appear to be similar (e.g. litigation support), they differ significantly in their objectives, with the goal of fraud auditing being to determine whether fraud has occurred and, if so, who is responsible. Forensic accounting has the additional objective of assessing the financial consequences and determining whether the allegations have a factual basis by analyzing the financial evidence.

Forensic accounting as a profession plays a major role in preventing and detecting frauds and almost in all areas of business there is a need for the services of forensic accountants. In modern conditions, when the whole world is struggling with the COVID-19 pandemic and the consequences it brings, an increase in the number of frauds is expected, which will result in an increase of demand for specially trained experts in the area of fraud prevention and detection. In this context, this paper emphasizes the role of forensic accountant in the fight against fraud and presents the occupational standard and qualification standard developed for this profession in the Republic of Croatia. The occupational standard identifies key jobs within the profession as well as the competences that a person needs to possess to successfully perform jobs within the profession.

Large corporate scandals in the US and Europe, from the early 21^st century, such as Enron, Parmalat, WorldCom and many others, have seriously shaken public confidence in the auditors’ work. Consequently, many countries have recognized the need for introduce the forensic accounting as a more advanced and reliable form of protection against manipulative financial reporting by companies, and have completed the accounting profession with the forensic accountant title, as an active fighter against various types of frauds in companies.

The aim of this paper is to shed light on the two most common examples of financial fraud, which occur in most businesses in Bosnia and Herzegovina. The causes and consequences of the mentioned financial frauds will be analyzed, as well as the reasons why they were not procedurally discovered in time. The first example is related to the inflow of money from abroad, which creates doubts about merits, while the second example is related to the presentation of operating losses and reduced tax liabilities of related legal entities. Each of the examples will be analyzed in detail in terms of the causes of financial fraud, the manner of their implementation, the relevant accounting records, and finally the manner of their detection.