THE ROLE OF FORENSIC AUDIT IN IMPROVING FINANCIAL MANAGEMENT AND CONTROL SYSTEMS
Abstract: Forensic auditing is a significant tool for detecting, preventing, and proving financial irregularities, fraud, and corruption, thereby contributing to the strengthening of financial management and control systems in both the public and private sectors. The subject of this paper is an analysis of the role of forensic auditing in improving financial management and control systems, with a special focus on its contribution to increasing the transparency, accountability, and efficiency of financial resource management. The aim of the research is to examine the significance and potential application of forensic auditing in detecting financial misconduct, reducing fraud risk, and strengthening internal control mechanisms, based on a theoretical analysis, a review of relevant scientific and professional literature, and empirical research. The main hypothesis of this research posits that the application of forensic auditing significantly contributes to the improvement of financial management and control systems by enabling the timely detection of irregularities, more efficient risk management, and greater reliability of financial reporting. The research results indicate that forensic auditing is an important mechanism for improving corporate and public governance, strengthening the integrity of financial processes, and increasing stakeholder confidence. The scientific contribution of this paper lies in the systematization of theoretical knowledge and in highlighting the importance of the broader application of forensic auditing as a tool for contemporary financial management and control.
Keywords: forensic audit, financial management and control, management