DOI: 10.7256/2454-0765.2018.2.28303

Abstract: The subject of the research is the assessment of audit risk in relation to qualitification for preparation of accounting statements. Vasilenko analyzes all stages of making fuzzy inference about audit risk. The researcher focuses on the input linguistic variable (the degree of non-observance of qualification for preparation of accounting statements) and ouput linguistic variable (the level of risk of material misstatement). Vasilenko presents his own software that is designed to analyze the influence of non-observance of qualification for accounting statements on the amount of risk of material misstatement using the fuzzy sets tool. The main research method used by the uthor is the fuzzy logic. The audit risk is evaluated using the qualitative and quantittive means based on a professional auditor opinion. The novelty of the research is caused by the fact that the author applies new definitions of the audit methodology: 'non-observance of qualificiation for preparation of accounting statements' and 'degree of non-observance of qualification for preparation of accounting statements'. The range of misstatement values that defines the level of non-observance is the value multiple of materiality level. The model of using fuzzy sets in the process of material misstatement risk evaluation compared to the degree of non-observance allows to develop rules that reflect different aspects of uncertainty related to the use of a professional auditor opinion.

DOI: 10.7256/2454-0765.2018.2.25872

Abstract: The subject of the research. The article is devoted to the negative consequences of the non-observance of financial responsibility by organisations both in relation to their counter-agents (for example, untimely payment of recievables) and state (minimization of tax payments). These consequences include severe losses and failures of the financial system. The researcher examines the legal essence of financial responsibility  and whether it is possible to view it as an independent type of public responsibility. He also studies types of financial responsibility and sanctions for the violation of each of them. The research method is based on the dialectical method that implies the analysis of financial relations of a legal entity as well as analysis and sythesis. The scientific novelty. Based on the research results, the author defines the importance of financial responsibility that is to guarantee the financial discipline of physical and legal entities and proves the need to give a definition of this term in the Russian law in order to raise the level of trust and market transparency and financial discipline of economic relation participants. Conclusions. The importance of financial responsibility is caused by the need to increase the level of financial market transparency and the growth of trust of market relations participants in the financial system of the state which is impossible without institutionalization of the definition of financial responsibility. For this reason, the author suggests to improve the current law in the sphere of financial responsibility of legal entities that impose responsibility not only for non-performance of tax obligations but also other financial obligations which directly or indirectly may harm the state or citizens. 

DOI: 10.7256/2454-0765.2018.2.24155

Abstract: The process of formation of the existing system of counteraction to legalization of proceeds from crime, which is based on the principles of interaction between financial, administrative institutions and law enforcement bodies, is considered in the work. Unlike the United States and Great Britain, the Ministry of Economy and Finance is responsible for developing policies to counteract money laundering in Italy.The authors of the paper analyze the activities of the national financial intelligence unit of Italy - L'Unità di informazione finanziaria per l'Italia (UIF), established in accordance with Legislative Decree 231/2007 as an independent body within the structure of the Bank of Italy, as well as the National Commission for Companies and The stock exchange and the Institute for Insurance Supervision. Based on the data received, the authors draw attention to the fact that Italy has a well thought-out regime for countering the legalization of proceeds from crime through a well-developed legal framework. During the research, the authors have used historical, logical, statistical, systemic and prognostic methods of investigation. The main conclusion of the research is that the distinctive feature of the Italian system is the close interaction of the national financial intelligence unit with the Bank of Italy, formally independent but essentially structural subdivision thereof. Involvement of other state authorities also contribute to increasing efficiency of combating money laundering. 

DOI: 10.7256/2454-0765.2018.2.27704

Abstract: The object of the research is the relations that may arise in the process of cybersecurity provision. Based on the example of Singapore, the center of financial and economic life of the Southeast Asia, Goryan defines the role of the financial regulatory authority, Monetary Authority of Singapore (MAS), in the provision of cybersecurity of the financial and banking sectors. The author describes peculiarities of the legal status of MAS that determine the coordination role in the institutional mechanism of cybersecurity provision. He also studies the key documents of MAS as the grounds for the legal mechanism of cybersecurity provision in Singapore. In order to receive the most valid results, the author has applied a set of general research methods (structured systems approach, formal law method and hermeneutical method) and special research methods (comparative law and formal law methods). The monetary and financial management of Singapore covers such aspects of security as confidentiality and privacy of information by issuing special acts and mandatory regulations for financial institutions. There is a draft law on cyber hygiene that would be mandatory for all financial institutions and define mandatory safety requirements for financial services. Non-observance of these regulations would result in revocation of a license. Organisational and legal mechanisms are actively used, too, such as the Agency of Cybersecurity of Singapore, research institutions and heads of cybersecurity departments at major financial enterprises and banks of the world. All this defines the key role of the financial regulatory authority in the provision of information security of the financial and banking sectors. 

DOI: 10.7256/2454-0765.2018.2.28268

Abstract: The impact of government ownership of a firm’s equity has been a topic of heated debate in finance, economics, and politics. The extant literature provides evidence of both positive and negative effect of government ownership on the market value of firms with multiple reasons in favor of both effects. There has also been research on how such effects may differ in different markets. This paper aims to explore the value-relevance of such in the financial market of Russia. We are using a sample of 159 Russian listed companies to identify the relationship between market value and government ownership of equity. Even though the previous studies support a positive relationship between the two variables the evidence from Russian listed firms proves otherwise. We find that the Russian market does not reward governmental control, however, it doesn’t penalize it as well. The research connects to the efficient market hypothesis (EMH).