Components Of Internal Control Research Articles

Managerial Ability and ESG Risks: The Moderating Effect of Internal Control Quality

The 2017 COSO framework highlights the increasing need to incorporate environmental, social, and governance (ESG) considerations into firms’ internal control and risk management practices. Top managers play a crucial role in risk management and control. However, it remains unclear whether managerial ability affects ESG risk management. This study investigates the relationship between firms’ ESG risk exposure and managerial ability, and examines whether the quality of internal control (ICQ) influences this relationship. Based on panel data from Chinese listed firms between 2008 and 2022, we found that firms led by more capable managers have lower overall ESG risk exposure, including reduced environmental, social, and governance risks. Furthermore, our findings indicate that higher ICQ strengthens the association between managerial ability and ESG risks. Specifically, an analysis of the five internal control components showed that the mechanisms through which ICQ influences this relationship involve enhancing control environments, risk assessment, control activities, and information and communication channels. Further analysis indicated that the moderating effect of ICQ on the relationship between managerial ability and ESG risks is influenced by management power and the effectiveness of external governance mechanisms.

ANALISIS PENGENDALIAN FOOD COST PADA HOTEL THE ST. REGIS BALI RESORT

This research examines food cost control at The St. Regis Bali Resort uses the Committee of Sponsoring Organizations (COSO) framework which includes five main components of internal control. The study revealed that although the resort implemented a comprehensive control system, there were some gaps between implementation and ideal food cost control practices. The main findings show the existence of food cost variances caused by ineffective and inefficient controls. Several important factors that contribute to this problem include: delays in sending market lists and purchase requisitions from the kitchen to the purchasing department, receiving invoices that do not match the purchase order, and receiving scribbled notes from suppliers. This research also identified non-compliance with standard procedures in the process of purchasing and receiving food ingredients. For example, the purchasing department sometimes makes purchases outside the specified suppliers, while the goods receiving department faces price inconsistencies from suppliers. These gaps hinder the achievement of optimal food cost control targets and have the potential to affect the company's financial stability. This study emphasizes the importance of implementing a tighter and more consistent internal control system to increase the effectiveness and efficiency of food cost control at The St. Regis Bali Resort

Can Internal Control Components Influence Internal Customer Satisfaction? An Applied Study in a Shared Service Centre

Can Internal Control Components Influence Internal Customer Satisfaction? An Applied Study in a Shared Service Centre

The influence of factors in the internal control system on financial reporting quality at administrative and public service units in Vietnam

The objective of the project is to measure the influence of factors in the internal control system on financial reporting quality at administrative and public service units in Vietnam. The author inherits five internal control components from the Committee of Sponsoring Organization [COSO], 2013: control environment, risk assessment, communication information, and supervision that affect financial reporting quality. The author uses a mixed research method including qualitative and quantitative, with primary data collected through a survey of 400 units with 30 observed variables, resulting in 350 valid survey forms. From there, the study analyzed EFA exploratory factor analysis and multivariate regression analysis with support from SPSS 27.0 software. Research results show that the internal control system has an impact on administrative and public service units in Vietnam, with the level of influence of the components gradually decreasing: (1) information and communication, (2) control environment, (3) control activities, (4) risk assessment, (5) monitoring. With the results of this research, it helps administrative and public service units to improve and enhance the financial reporting quality while helping to reduce and eliminate weaknesses in the internal control implementation process, in order to strengthen the internal foundation and influence positive impact on governance.

ANALYSIS OF INTERNAL CONTROL EFFECTIVENESS OF INDIHOME SALES SYSTEM AND CASH RECEIPTS AT PT. TELECOMMUNICATION INDONESIA REGIONAL 5 JATIM BALNUS

The purpose of this study was to determine the effectiveness of internal control on the IndiHome sales system and on the cash receipt system at PT Telekomunikasi Indonesia Regional 5 Jatim Balnus. The research method used is a qualitative method with primary and secondary data collection techniques, primary data collection using interview techniques obtained from resource persons of PT. Telkom Regional 5 Jatim Balnus. The research object used is the internal control procedures for IndiHome sales and cash receipts. This study analyzes several factors regarding the application of internal control effectiveness in accordance with the components of internal control according to COSO which includes five components, namely the control environment, risk assessment, control activities, information and communication, and monitoring. The result of this study is the implementation of the effectiveness of internal control over the IndiHome sales system and cash receipts at PT. Telekomunikasi Indonesia Regional 5 Jatim Balnus has been running in accordance with applicable procedures in accordance with company rules.

Effectiveness Of The Audit Function As An Internal Control Tool

This research aims to determine the effectiveness of the audit function as an internal control tool. Audit as an internal control tool is very important for the efficiency and productivity of company operations. Internal audit is a process in which internal auditors review and assess the internal control systems and procedures used by an organization. Internal audits can assist in carrying out fixed asset acquisition procedures, improve management performance, and help companies maintain internal control. The internal audit function also makes it possible to measure and assess how effective other internal control components are, assisting management in implementing effective internal control. The results of this research are a very important tool for management to ensure that company operations run well and efficiently.

Analisis sistem pengendalian internal prosedur pengeluaran kas: COSO ICIF 2013

Financial management plays a crucial role in the survival and growth of companies. Cash disbursement is a common transaction in companies, necessitating effective internal control systems to prevent fraud or misappropriation. This study aims to analyze the internal control system and evaluate the internal control system over cash disbursements at PT WE, a mining consulting company in Yogyakarta. The research method used is descriptive-evaluative with a qualitative approach. Data were collected through direct observation and interviews with relevant staff. Evaluation was conducted based on the 17 principles within the five main components of the COSO Internal Control—Integrated Framework 2013. The results indicate that PT WE has implemented some internal control principles effectively, but there are still weaknesses in interdepartmental coordination, risk identification, and cash disbursement procedures. Based on the findings, it is recommended that PT WE improve coordination and communication between departments, systematically identify risks, and enhance cash disbursement procedures by establishing clear protocols, segregating related tasks, and periodically evaluating the internal control system.

Sistem Pengendalian Internal Persediaan Barang Dagang Pada CV. XYZ

This research aims to determine the internal control of merchandise inventory at CV. XYZ. The research method used is a qualitative method and the data collection techniques used are library research and field research. The data analysis techniques used are data reduction and data display. The results of this research indicate that the implementation of internal control at CV XYZ has not been implemented properly. This is because there are still several weaknesses in several components of internal control of merchandise inventory, namely the existence of multiple positions in running the organization and not recording inventory expenditure on inventory cards or warehouse cards.

Internal control system in commercial companies of Cuenca – Ecuador

This study focuses on evaluating the internal control system in commercial companies in Cuenca and proposing improvement strategies based on the results. The methodology adopted combines qualitative and quantitative approaches, using an instrument based on the COSO methodology. This questionnaire consists of 63 closed questions, to collect information about the 5 components of internal control, the sample was made up of 14 companies. The evaluation was divided into four phases: I. Planning, II. Execution, III. Results and IV. Improvement plan. The results are positive for trust, in the system and for its components with ranges between 76% and 85%. While trust in supervision or monitoring was evaluated as moderate. Finally, the identified weaknesses were addressed by drawing up an improvement plan in some companies belonging to the studied population.

Analisis Penerapan Sistem Informasi Akuntansi Dalam Menunjang Efektivitas Pengendalian Internal Pemberian Kredit Pada Bank Pembangunan Daerah Jawa Barat Dan Banten, Tbk KCP Jampang Kulon

This study aims to find out 1) know the application of accounting information systems, 2) know the application of accounting information systems for lending 3) know the application of effective internal control systems at PT. Regional Development Bank of West Java and Banten, Tbk KCP Jampang Kulon. The type of research used is a descriptive qualitative method, where this research data is obtained from direct observation and interviews with Bank BJB and obtained from documents related to this study. The results of this study show that the accounting information system at Bank BJB KCP Jampang Kulon has been implemented and most of them are good enough according to the provisions at Bank BJB and have fulfilled the elements of the accounting information system components. However, there are weaknesses in the system used, namely there are still problems that occur such as errors and also the sharing of accounts with other users so that it can result in errors in transactions and the blame party is the owner of the account. As for the accounting information system for lending, it has also been implemented in accordance with the lending procedure at Bank BJB KCP Jampang. In addition, the internal control system of Bank BJB KCP Jampang Kulon has also been implemented and most of them are effective and have fulfilled the internal control components according to COSO. In practice, the components that are run are effective, but the LMS system used is still not effective because there are still errors and there are still sharing SLIK accounts with other KCPs so that it can hamper the SLIK submission process.

Does internal control affect firms' use of derivatives? Evidence from China

This study investigates the impact of internal control on firms' use of derivatives. We find that firms with strong internal controls are more likely to use derivatives than firms with weak internal controls. In cross-sectional analyses, we find that this relationship is more pronounced for subsamples with lower executive pay-performance sensitivity, lower executive ownership, smaller board size, and higher proportion of busy directors. Additional analyses suggest that among the five components of internal control, control environment, risk assessment, information & communication, and monitoring exhibit stronger impacts on derivatives use than that of control activities. We contribute to the literature on the determinants of firms' use of derivatives and highlight some components of internal control are more critical than the others in guiding a firm's derivatives usage.

Analisis Sistem Pengendalian Intern dalam Menunjang Efektivitas Prosedur Pemberian Kredit pada KSP Kopdit Hiro Heling Cabang Utama

This reaseach aims to determine the implementation of internal control system in supporting the effectiveness of the credit granting system at KSP Kopdit Hiro Helingmain branch.Data collection used in this research used interview and observation methods.This type of research used qualitative descriptive analysis techniques by comparing the internal control system thas been implemented at KSP Kopdit Hiro Heling with the internal control system according to COSO Framework (2011).The results of this research indicate that the implementation of an internal control system to support the effectiveness of kredit granting procedures at KSP Kopdit Hiro Heling main branch and according to the COSO Framework (2011) has beeb implemented but there is still an internal control component,namely the control environment in inadequate because the organizational structure does not yet special staff at SPI (internal supervisory unit) Keywords : Credit Granting Procedure, Intenal control system.

Analisis pengendalian internal persediaan barang dagang di Nehemia Mart Tahuna

This study aims to determine the internal control system for merchandise inventory according to the COSO framework at Nehemia Mart Tahuna. The research method used in this research is descriptive qualitative. The data used in this study is primary data with interview, documentation and observation collection techniques. The results of this study indicate that the internal control system for merchandise inventory at Nehemia Mart as a whole has not been implemented properly as there are still several internal control components that are not in accordance with the COSO framework. The main problem in this case is the owner is not firm in implementing every rule.

Modification Of Coso Internal Control For The Economy Of Indonesian Corn Emblems SMEs

This study aims to determine the application of raw material control and internal support according to COSO and COSO modifications for Micro, Small and Medium Enterprises (MSMEs). The object under study is the Nusantara Corn Chips SMEs. The research method used in this study is a qualitative method with the type of case study. Based on observations, it is known that the internal control of raw materials and supporting ingredients for Nusantara corn chips is still very simple. Based on the survey, it shows that in the control of raw and supporting materials at Emping Jagung Nusantara, there are 10 principles that are appropriate and 7 that are not in accordance with the COSO internal control components. In accordance with this, there are several principles that are not relevant for MSMEs, such as the absence of a board or audit committee as a supervisor for MSMEs Emping Jagung Nusantara. The above basis is irrelevant and takes into account the principles of cost and benefit, the principles of COSO, so that COSO internal controls are formed for MSMEs.

Analisis Pengendalian Internal Terhadap Penyaluran Kredit Usaha Rakyat (KUR) pada PT Bank Pembangunan Daerah Jawa Tengah Kantor Cabang Pembantu Babadan Ungaran


 
 
 
 Internal control in a company is very important. Internal control will be used by the company as a guide in carrying out its operational activities. The purpose of this study was to determine the application of the internal control system in distributing people's business credit (KUR) implemented by PT Bank Pembangunan Daerah Jawa Tengah, Babadan Ungaran Sub-branch Office and to identify whether the internal control applied is in accordance with the control components according to the Committee of Sponsoring Organizations of The Treadway Commission (COSO), which includes the control environment, risk assessment, control activities, information and communication, and monitoring. The data used is qualitative data sourced from primary data and secondary data. Collecting data using interviews, questionnaires, and literature study. The writing method uses a descriptive qualitative method. The results of this study indicate that the implementation of the internal control system for the distribution of people's business loans (KUR) at PT Bank Pembangunan Daerah Jawa Tengah, Babadan Ungaran Sub-Branch Office has gone very well and the suitability of internal control components with internal control components according to the Committee of Sponsoring Organizations of the The Treadway Commission (COSO) has not fully complied with the risk assessment component, there are still bad credit and human error.
 
 
 
 
 Keywords:
 Internal Control System, Distribution of People's Business Credit, Standard Committee of Sponsoring Organization of The Treadway Commission (COSO)
 
 
 
 
 
 
 

Analisis Pengendalian Internal Piutang BPJS Kesehatan Untuk Meningkatkan Efektivitas Pengelolaan Piutang di RSUD Kota Mataram

This study aims to determine how internal control at the RSUD Kota Mataram, especially on BPJS Kesehatan receivables. The research method used is descriptive qualitative with primary data sources to obtain information related to the application of internal control based on the five components of COSO internal control, in addition to knowing the turnover of receivables and the average days of collection of BPJS Kesehatan receivables, then the data collection technique is carried out by means of interviews, observation, and documentation, then data analysis is carried out in the form of reduction, data display, and conclusion drawing. The results of this study indicate that the internal control of BPJS Kesehatan receivables at the RSUD Kota Mataram is effective, indicated by the existence of a control environment, risk assessment, control activities, information and communication, and supervision that already exists or is carried out on BPJS Kesehatan receivables. Meanwhile, based on RTO and ACP, it shows that BPJS Kesehatan receivables in 2020 are more efficient than in 2021 and 2022, this is because the number of BPJS Kesehatan receivables for each year has increased so that the capital embedded is getting bigger so that the longer it takes to become cash.

Analisis Sistem Pengendalian Internal Terhadap Proses Keluar – Masuk Barang PT. Global Transportindo Prima

The number of damaged and lost goods has increased, this is due to the lack of supervision carried out by the company in sorting goods that are easily broken or goods that are easily damaged by using packaging that is easily damaged, the lack of information system procedures in inputting data to prepare reports on incoming goods and out, causing an increase in the loss of goods to be sent, causing the company to have to provide compensation to customers who have lost goods and can cause a decrease in the quality of supervision of the company. Therefore, PT. Global Trasportindo Prima requires an effective and efficient information system so that it can adapt to demands to increase the speed of the process from receipt, storage, to final receipt. The research method was carried out using descriptive analysis method, this research was used to collect research data that would be obtained from PT. Global Transportindo Prima. The results of the study show that PT Global Transportindo Prima has been effective in its internal control over the incoming and outgoing goods process because it has complied with the internal control components of the COSO (committee of sponsoring organization). From the results of the above research it can be concluded: The loading and unloading process carried out at PT Global Transportindo Prima is in accordance with the procedures set by the company. Even though there were several processes that were not carried out because they were adjusted to the actual conditions that existed, overall they had complied with the existing procedures. PT Global Transportindo Prima still had not implemented a good information system so that manual recording would sometimes hamper and lack of manpower so that checking the stock of goods still uses physical files or even checks the items that are arranged. In the management of PT Global Transportindo Prima, there are many who make loans but forget to repay debts, this is due to the transfer of salaries that go to the bank.Keyword : Internal Control System

Implementastion of Internal Inventory Merchandise Control System

Internal control is a security measure to prevent damage, theft or other irregularities. The formulation of the problem in this research is "How is the implementation of the internal control system for merchandise inventory at PT. Sinarmas Distribution Nusantara Malang Branch.” The purpose of this research is to find out how the internal control system for merchandise inventory at PT. Sinarmas Distribution Nusantara Malang Branch. This type of research is descriptive research. The data analysis method used in this research is qualitative analysis. Results of research into PT's internal inventory control. Sinarmas Distribution Nusantara Malang Branch is in accordance with the five components of internal control according to COSO. This shows that internal control over merchandise inventory at PT. Sinarmas Distribution Nusantara Malang Branch is in the very effective category. In order for internal control over inventory to be more effective, companies should be more committed to existing ethics and carrying out work in accordance with predetermined duties and responsibilities.

Assessing Internal Control Effectiveness in Credit Unions: A Coso-Based Study

Purpose: The purpose of this study was to evaluate the internal control process in organizations, specifically focusing on savings and credit unions in the Tambo canton. The aim was to assess the fulfillment of actions, activities, plans, policies, standards, records, procedures, and methods within these organizations. The study sought to provide insights into the reliability of internal controls and their impact on the achievement of objectives in public, private, and mixed companies.
 
 Theoretical framework: The study is grounded in the COSO (Committee of Sponsoring Organizations of the Treadway Commission) model, which provides a comprehensive framework for internal control systems. The research draws upon concepts and principles from this model to assess the reliability of internal control components within savings and credit unions in the Tambo canton.
 
 Design/Methodology/Approach: This investigation employed two main approaches: quantitative and bibliographic. The quantitative approach involved using an internal control questionnaire specifically designed for savings and credit unions in the Tambo canton. The questionnaire was structured based on the COSO model components. The bibliographic approach involved an extensive review of existing literature and relevant sources to establish a theoretical foundation for the study. These methods were used to assess the reliability of internal controls in the organizations under investigation.
 
 Findings: The study found that the savings and credit unions in the Tambo canton demonstrated high levels of reliability in the components of the COSO I methodology. The internal control processes within these organizations were effective, indicating commitment, responsibility, integrity, common objectives, communication, and evaluation among the workers. The findings suggest that the internal control systems in place contribute significantly to the organizations' overall reliability and low levels of risk.
 
 Research, Practical & Social implications: From a research perspective, this study contributes valuable insights into the effectiveness of internal control processes within savings and credit unions, particularly when assessed through the lens of the COSO model. Practically, the findings have implications for organizations seeking to enhance their internal control systems, emphasizing the importance of commitment, communication, and evaluation in ensuring reliability. Socially, the study underscores the significance of trustworthy and reliable internal control mechanisms, which can foster integrity and responsibility within organizations and, by extension, contribute to the community's overall trust in these institutions.
 Originality/Value: The originality of this study lies in its specific focus on savings and credit unions in the Tambo canton, providing a detailed evaluation of their internal control processes using the COSO model. The research adds value by offering practical insights for organizations aiming to improve their internal control systems, making it a valuable resource for practitioners and policymakers. Additionally, the study contributes to the broader academic discourse on internal control processes, reaffirming the importance of commitment and communication within organizations for achieving reliability and low risk levels.

Internal control and accounting processes of the salt production companies in the Salinas canton

Internal control is a measurement tool that allows optimizing the use of resources and making the right decisions based on reliable information on accounting management, through various strategic actions to reduce risks in the organization and strengthen business sustainability. The purpose of this article is to determine how internal control affects the accounting processes of salt production companies in the Salinas canton, through the analysis of each of the components of internal control; in this sense to achieve the planned objective, a qualitative research was conducted, in which a documentary and descriptive analysis was used, applying the techniques of surveys to employees and senior management team to salt production companies in the Salinas canton, where several parameters were determined for better analysis. The results obtained show that in the analyzed companies there is a deficient internal control due to the lack of knowledge of the importance of its application, in addition to the fact that being family companies, decision making is based on experience or personal criteria, and not on a process of analysis in relation to the accounting information.