ANALIZA UTICAJA FORENZIČKOG RAČUNOVODSTVA NA ODRŽIVO KORPORATIVNO UPRAVLJANJE / ANALYSIS OF THE IMPACT OF FORENSIC ACCOUNTING ON SUSTAIN

Abstract

The concept of traditional corporate governance implies separation of power, establishment of control at the level of the board of directors and engagement of external auditors, which does not increase organizational value or achieve long-term effective performance and social responsibility. It is necessary to make changes towards sustainable corporate governance in order to gain a competitive advantage by increasing market share and avoiding risks, which include the risk of fraud. Successful business performance that ensures business growth and business sustainability is determined by sustainable corporate governance and fraud control activities. Numerous organizational frauds have created distrust and concern for corporate integrity and the sustainability of corporate governance. Forensic accounting most adequately eliminates and mitigates fraud. The paper will consider the possibility of forensic accounting as part of the management system and achieving sustainable corporate governance, proposing the adoption of a fraud-free business model (corruption, negative externalities, accounting fraud) as an organizational approach integrated into the corporate governance system through specific reporting mechanisms. Including forensic accounting in the strategy would ensure the safety of investors and improve the transparency of business activities.