Financial Audit and the Prevention of Tax Fraud in the Current Economic Environment

Abstract

Tax fraud represents one of the major challenges faced by modern economies, generating negative effects on public revenues and on the stability of the economic environment. In this context, financial audit plays an important role in identifying and preventing irregularities within economic activities, contributing to increased transparency and financial accountability of organizations. This paper aims to analyze the role of financial audit in preventing tax fraud in the current economic environment by addressing both the theoretical framework and an empirical research based on the application of a questionnaire. The study highlights the main mechanisms through which financial audit contributes to detecting and preventing tax fraud, as well as the respondents’ perception regarding the effectiveness of this control instrument. The research results indicate that most respondents consider financial audit an essential tool for ensuring financial transparency and for reducing the risk of tax fraud. Furthermore, the study emphasizes the importance of strengthening financial control mechanisms and implementing effective policies aimed at preventing fraud in the contemporary economic environment. CZU: 657.632:343.359; JEL: M42, H26, G32