Organized crime and its connection with financial statements

Abstract

During the course of this composition our objective will be that of examine in depth the impact that organize crime has on the economy of countries all over the world and how is it possible to identify the presence of organized crime’s activity during the analysis of financial statements done by external authorities.In order to analyze the impact that organized crime has on the economy of different countries we focused our research on parts of the worlds that have notoriously been affected by the actions of organized crime.We will then move our focus towards our country, Italy. The first objective is that of understanding the impact that organized crime has on the country’s economy: how it affects the GDP and firms profitability and performance;The last part of our research will be focused on our main objective: understanding which are the signals on financial statements that can point out the presence of organized crime activities inside a company. Thanks to the research done up until this moment we were capable to identify some elements that are common between companies that are connected with organized crime.