Nataliia Nestor, Deputy Director of Research of Kyiv Scientific Research Institute of Forensic Expertise, Olha Lukova, Head of the Economic Research Laboratory of KFI and Oksana Markina, Head of the Department for Accounting and Tax Accounting and Reporting of Economic Research Laboratory of KFI participated in the international practical conference “Accounting Examination and Audit: Topicalities and Perspectives”, which took place in the city of Riga.
The event was organized by the Forensic Service Department of the State Police by the Ministry of Internal Affairs of the Republic of Latvia on the occasion of the 20th anniversary of the Accounting Examination Unit of the Forensic Service Department.
The purpose of the conference was to discuss issues of expert reporting and audit, to find solutions to current problems in this area, exchange of experience and determining trends in the development of accounting expertise. Within two working days, specialists from Latvia, Lithuania, Belarus, Ukraine and Armenia discussed issues of accounting in criminalistics, and also considered practical examples of expertise and audit in court proceedings.
The presentation was attended by experts from five national expert centers in Latvia, namely: representatives of the State Police, the Office for Combating Economic Crimes, the State Revenue Service and the State Audit Office, as well as professional organizations – the Latvian Accounting Association, Latvian Lawyers Association, regional offices international auditing companies – BDO Latvija and Nexia Audit Advice.
Natalia Nestor, Deputy Director of Kyiv Scientific Research Institute of Forensic Expertise presented the activities of the Institute to the participants of the conference, spoke about the state of expert and scientific and methodological activity, and drew attention to the development of new types of research and current forensic examinations performed by Ukrainian forensic experts. Olha Lukova, the Head of the Laboratory of Economic Research of KFI and Oksana Markina, the Head of the Department for Accounting and Tax Accounting and Reporting of Economic Research Laboratory of KFI in the report presented the general activity of the Economic Research Laboratory of Kyiv Scientific Research Institute of Forensic Expertise and a separate issue was the consideration of the study of the operation on:
- determination of the documented justification for the size of the shortage or surplus inventory and cash assets, the period and place of their formation;
- determination of documentary validity of registration of operations for the receipt, storage, manufacture, sale of inventory, including cash, fixed assets, services;
- determination of documentary substantiality of accounting for cash, securities;
- determination of the documented validity of recording in the accounting of operations for the calculation and payment of wages and other payments;
- establish compliance with the current legislation in the tax accounting of income and expense for financial and economic transactions subject to taxation of income tax;
- determination of conformity to the current legislation of the tax liability and tax credit value added tax accounting in tax accounting, etc.
In the statement of Yuliia Liodorova, the senior expert of the Forensic Service Department of the State Police of the Republic of Latvia, was noted that according to the ACFE Annual Report for 2017 (Association of Certified Fraud Examiners), 2690 professional cases of fraud (2 in Latvia) were found in 125 countries totaling more than 7 billion US dollars. In fraud, most cases are illegal appropriation of assets, the rest are acts of corruption. The expert also noted that the fraud in the financial statements which in percentage terms is only 10% of all cases, but in terms of financial losses is the largest.
Ilze Sokolovskaya, Deputy Director of the State Police Economic Crimes (ENAP), noted the important role of forensic experts in the investigation of economic crimes and explained that experts are invited to deal with non-standard cases when their own potential is lacking. Noting the daily work of ENAP, Ilze Sokolovskaya acknowledged that topical issues among the cases considered were money laundering and fraud cases, including fraud related to EU funds. With regard to money laundering and fraud with banks, the Council refers to the Financial and Capital Market Commission (FCMC).
The representative of the International Auditing Company BDO of Latvia spoke about the latest developments in the field of combating “money laundering” and “front companies”. They were analyzed according to the statistics on non-resident investments in Latvia, when in 2015 the amount of deposits exceeded the size of residents’ deposits with Latvian banks. After the campaign against shell companies and laundering of proceeds from crime, the volume of deposits of non-residents decreased significantly. During the presentation, the speaker gave examples of the work of shell companies, money laundering schemes on a global scale, and introduced the latest legislation to the participants, and intensified the fight against such entities in Latvia.
Olena Kozinda, Head of the State Revenue Service Methodology Department (SRS), introduced the participants to the SRS ESCORT risk analysis system and the way to control taxpayers in this system, and the risk assessment procedure. The main objectives of the program for legal entities are the analysis of data risks for the application of tax control measures, the analysis of VAT declarations and the identification of high risk tax payers, as well as the establishment of persons who are paid wages in “envelopes”.
Forensic experts from Latvia, Lithuania, Ukraine, Belarus and Armenia exchanged experience and specifics of forensic and accounting expertise in their countries. At the end of the conference the participants expressed their gratitude to the organizers and the further wish of the meetings at the international level to discuss the achievements and problems in the field of forensic expertise not only in Latvia but also in other countries. It was proposed to hold an economic conference in the countries participating in the conference – Lithuania, Belarus, Ukraine and Armenia.