Measurement and assessing the risk of the fraud: Application in textile industry

Globalization,information technologies and heightened competition conditions are the main factors increasing the fraud risk in all countries.Despite of the negative impacts that frauds effecting to the enterprises many of them still don't have systems designed common system preventing, investigating, detecting and responding fraud in Turkey's textile sector. The main purpose of our study is assessing the fraud risk based on scrutinizing how effective systems the enterprises operating in textile sector are having on the basis of internal control and corporate governance. In this study we prepared some questions specified to textile sector.For that purposes we asked these questions to department's workers and administrators by means of questionnaires and interviews. Because of the sensitivity,scope and methods used in our study, our works is limited with two enterprises. It is concluded that the existing controls in the enterprises operating in textile sector are not adequate.Considering the contemporary business concepts such as internal control and corporate governance principles which are having significant functions in preventing and detecting fraud risks will assist to mitigate fraud risks in enterprises operating in textile sector.