Investigation of internal control structure and measuring fraud risk in mining sector

Globalization, increasing competition, rapid change in technology and economic crises are the main factors that increase the risk of fraud in businesses in all countries. Despite the serious economic impact of fraud on businesses, there are little or no systems and procedures developed by many businesses to prevent, uncover and respond to fraud. The risk of fraud is inevitable if appropriate positions and conditions arise from the lowest level personnel working in the enterprise to the managers of the enterprise. Fraud risk assessment, which helps prevent and reveal fraud, is a process that identifies, analyzes, and assesses existing controls within the entity for fraud risks. The main purpose of this study is to evaluate the fraud risks that may be encountered in the mining sector by evaluating the elements that are at risk of fraud in the mining sector on an example business . Necessary measures have been evaluated in order to prevent fraud risks in the mining sector or to eliminate these risks by timely intervention. In order to prevent the possible adverse consequences in the future by identifying the points that are at risk of fraud in mining operations, the interviews were conducted with the authorized personnel of a mining enterprise and the mining operations were evaluated in terms of the risk of fraud. Furthermore, as a result of SWOT analysis, superior and weak points and opportunities and threats were evaluated. As a result of the interviews conducted with the authorized personnel of the mining enterprise, the internal control system of the enterprise is not given the necessary importance, the distribution of duties of the employees is not made, the net rules are not applied in recruitment and promotion, there is a lack of communication between the production department, marketing and sales departments and the senior management. Furthermore, it has been determined that an effective reporting system has not been established in the accounting department and that the accounting information system is not reliable.