Accounting, Auditing, and Money Laundering: Analyzing their Impact on Economies

Abstract

This comprehensive review delves into the intricate relationship between accounting, auditing, and the pervasive issue of money laundering, exploring their collective impact on global economies. Accounting and auditing are foundational pillars of economic transparency, contributing to growth, stability, and investor confidence. Their international standards, such as IFRS and ISA, facilitate cross-border investments and financial harmonization. However, money laundering, a formidable challenge in modern economies, threatens financial systems' integrity. This review provides a comprehensive analysis of money laundering's various forms, global scale, and vulnerabilities within financial systems, including the role of technology and regulatory frameworks. The interplay between accounting, auditing, and money laundering is examined, highlighting red flags, regulatory compliance, and technological advancements. Real-world case studies illustrate the economic implications of money laundering, from reduced foreign investments to weakened financial institutions and social instability. To combat money laundering effectively, this review emphasizes the importance of enhanced accounting practices, auditor roles, and collaboration among stakeholders. Lastly, it addresses future trends, emerging threats, and the pivotal role of education and training in building a resilient global financial ecosystem.