Internal Managerial Control – Perspectives on Some Modern Methods of Reducing the Risk of Fraud in Public Administration

Abstract

Once it has been implemented according to the legal provisions, the national legislation in Romania offers only a few indications regarding the development and adaptation of the internal managerial control to the evolution of the risks to which public institutions are subjected in their daily activity. Thus, the development of internal control refers only to its continuation, from year to year, to the full implementation of the standards related to the five components of internal control. The risk of fraud is not treated separately, but aggregated, together with the other risks identified by the entity and mentioned in the risk register. The purpose of this paper is to draw attention to somewhat new methods for public entities (certainly already used in the private sector) and to see how total integration of internal control in current activities and innovations in this field can lead in diminishing the risk of fraud.

Keywords

• warning signals
• red flags
• whistleblowers
• decision tree
• error