NCJ Number
79662
Date Published
1979
Length
17 pages
Annotation
A representative of the Swedish Association of Qualified Accountants comments on the Swedish Crime Prevention Council's study of accountants' roles in preventing and possibly in assisting in white-collar crimes, particularly tax evasion and bankruptcy fraud.
Abstract
The Crime Prevention Council concluded their study with a report clearing the Swedish accounting profession of allegations of widespread illegal activity, particularly in the area of advising clients on matters related to tax evasion and other types of economic crime. The Council also emphasized the importance of qualified accountants in detecting and preventing crime. Although accountants' and auditors' opportunities to detect criminal activity can be numerous (all major companies are required to undergo an annual audit by a qualified accountant), society should not pin unrealistic hopes on accountants' ability to uncover economic crime. For one, the thoroughness of an audit is constrained by time and money factors. For another, economic crime in its advanced stages is nearly impossible to detect. The best preventive measure is to require companies to keep complete and accurate records as well as have strong internal controls. Accountants should be alert for companies whose books are not in order, who have not registered with local tax authorities, or who show other irregularities. Although accountants and auditors have no enforcement powers, they do have continual contact with companies they audit, have close bonds with management, and have familiarity with recordkeeping procedures. Also, better prevention might be obtained by requiring all companies to have their auditing done by registered, qualified accountants, who could eventually be given legal training, and by increasing the number of accountants so that even small concerns would be audited. No references are cited.