The role of SMEs' internal control system to prevent the fraud

SMEs became an important actor with their flexible structures, contribution to employment and innovative structures in the globalizing world economy. New business opportunities in the global economy also created by rapidly developing SMEs are an important indicator in terms of their economic position. SMEs constitute the majority of firms in Turkey. SMEs' significantly contribute the economic development with their employment opportunity, and tax income. Turkey's SMEs has been brought export revenues by being opened to the world through their competitive and flexible sructure. Internal control system is a system which must be established to prevent the disruption of business activities and achieve the set targets. It has been provided that safeguarding, effective and efficient use of assets, ensuring the reliability of financial statements and reducing the risk of fraud and corruption with an efficient internal control system. In this study, managers of SMEs in Istanbul were questioned about the role of internal control on preventing the fraud, obtained data were analyzed by SPSS. According to the findings it was seen that there was a positive effect of established internal control system on the prevention of fraud. The opinion that when adequacy of the internal control system increasing, fraud is decreasing has been also observed according to SMEs.