Risk of fraud awareness in business: An empirical analysis

One of the most important problems in business are not produced reliable information. Fraudulent transactions that may mislead the public, investors and all other business entities pave the way for fraudulent activities that threaten both the economy and the future of businesses. One of the best examples of scandals caused by fraudulent actions is the Enron scandal. These and similar scandals have occupied the world's economic agenda for a long time. The company scandals started to question the company's management quality, risk assessment and fraud control, so that the "fraud auditing", "tricks risk" and " cheating risk awareness " concept has come to the fore. There is no luxury to lose the credibility of any business as a result of long efforts and fraudulent transactions due to control negligence. Therefore, businesses should give due consideration to fraud control and risk of fraud awareness. Nowadays fraud auditing and cheating case are an issue that is dealt with, evaluated and researched for businesses. The aim of this research is to create a consciousness about the fraud which is still a closed box and which the business world hesitates to talk about in Azerbaijan, to offer a solution against the tricks, to raise the importance of the fraud by putting forward its damage dimensions and to draw attention to the measures to reduce the risk of cheating. In this study, the level of fraud risk awareness and the level of fraud risk awareness were investigated in the companies operating in Azerbaijan. As a result of the research, it is concluded that the controls applied in the enterprises are not sufficient. Increasing cheating awareness in businesses will help to reduce the risk of fraud. Businesses taking into consideration the risk of fraud and cheating by creating awareness, primarily reflected in the financial statements that would minimize the likelihood of significant misstatements caused by fraud, material and spiritual meaning to be paid will be freed from heavy price.