The role of internal control in revealing and preventing errors and frauds in accounting records

Today, with the increase in globalization, the economic structure, technological developments and the increase in commercial transaction increase the errors and frauds that will occur in the accounting system. This increase will cause the stakeholders, who will make decisions by analyzing the financial statements, to be mistaken in their decisions. Recently, the increasing number of fraudulent transactions becomes inevitable with the development of technology. Fraudulent transactions not only cause material damage to the business, but also cause the image of the business to be shaken, the business to go bankrupt and the stakeholders to be victimized. It is difficult for businesses to detect and prevent fraud. Therefore, businesses will take heavy blows until fraud is detected. These negativities brought along the need for an internal control system. An effective internal control system must be present in the accounting system of the enterprise in order to avoid mistakes and fraud. The internal control system is a system that must be found in businesses in order to ensure that the operations of the enterprise are not interrupted and to achieve the goals set by the enterprise. An effective internal control system ensures the protection of business assets, effective and efficient use of assets, and confidence in financial statements. This study titled the role of internal control in preventing errors and frauds in accounting consists of three parts. In the first part, generally the concepts of error and cheating, the prevalence of mistakes and cheating, types of mistakes and cheating are discussed. The second part of controls and internal control concepts, internal control purposes, internal control types, in internal controls related to Turkey and related regulations and error and fraud in the world and has been included to the scandals encountered in the world. In the third part, the survey method, which is a quantitative data collection method, was used to measure the effectiveness of internal control in revealing and preventing errors and fraud in accounting. Keywords: Error, Fraud, Organized industrial Zone, Kayseri