Internal Control Efficiency Research Articles

The importance of features of the state financial control system

The system of financial control of the state is an integral attribute of state power. Improving its efficiency will help strengthen the financial, budgetary and tax order. Creating an effective system of state financial control by solving complex problems and identifying promising areas of development is an urgent task of the country. Any direction of state activity is formed on the basis of tasks that need to be implemented in the future to achieve the goals. In order to ensure full and timely budget execution, the Ministry of Finance is working to improve the quality of budget planning and execution, optimize and improve the efficiency of the budget execution process and treasury servicing accounts of state institutions, public procurement, as well as to prevent financial violations when using state budget funds. The internal state audit Committee of the Ministry of Finance of the Republic of Kazakhstan together with the Department that performs functions in the field of internal financial control within the competence of the Central Executive body, monitors the use of budget funds at the national and local levels on the basis of the legislation of the Republic of Kazakhstan. In addition, the Committee pays special attention to the targeted and effective use of budget funds allocated for the implementation of the address of the First President. Summarize, to ensure efficiency and avoiding inefficientin using funds, the activities of the financial control Committee of MF RK will be aimed at protecting the interests of the budget by further improving the efficiency of internal public financial control and the improvement of its conduct in collaboration with other bodies.

Application of Computer Accounting System in Internal Control of Enterprise Accounting

In the process of rapid development of computer technology, to promote the effective application of corporate accounting internal control in computers, accounting information system software can be constructed. The use of computer accounting information system software can improve the efficiency and level of corporate internal accounting control. The system software can not only improve the corporate financial management system, but also protect the accounting information system of the calculation class. When carrying out the internal control of the computer accounting information system, we need to strengthen computer hardware and software protection, and correctly face the security threats that exist in the computer for accounting control. In addition, we also need to take effective measures to improve the application level of corporate internal control on computers.

Gender diversity in the audit committee and the efficiency of internal control and financial reporting quality

This research investigates the relationship between the expertise of female audit committee (AC) chairs and financial reporting quality (FRQ). Also, it examines the moderating effect of the expertise of AC female chairs on the relationships between internal control (ICS), components of ICS, and FRQ This study analyses 302 firms listed on the Pakistan Stock Exchange from 2010 to 2016. Data on ICS, FRQ, and other corporate governance indications are collected manually from annual reports. This study concludes that the accounting expertise of AC female chairs enhances FRQ better than their male counterparts. Also, the accounting expertise of AC female chairs improve corporate governance mechanisms and ICSs (i.e., Control Environment, Control Activities, and information and communication). This research offers implications for shareholders and regulators. The accounting expertise of female AC chairs (WACCH) improve monitoring that enhances shareholder value and investor confidence. The regulator needs to be stricter regarding the requirements for AC chairs.

Internal control management in russian and foreign enterprises: paradigm and approach

Purpose. The complication of the competitive situation in the context of import substitution forces modern companies to pay increased attention to the organization of management. One of the ways to increase the efficiency of management is the development and improvement of such an element of it as the internal control subsystem. The organization of internal control at domestic enterprises shows the need to develop measures to improve this procedure in order to increase the efficiency of internal control. For this, the authors of the article study the features of the internal control procedure in foreign countries, identify the distinctive features of each of the models used abroad, as well as the goals, conditions and results of their application. Along with that, the internal control procedures at industrial enterprises of Voronezh are subjected to a deep analysis, weak points in the process of organizing internal control are revealed. Combining the experience of foreign companies, the authors conduct a study of the possibilities of using certain methods and procedures that have successfully proven themselves abroad, at Russian enterprises in the process of carrying out internal audit.Objectives. In this article, the authors investigate approaches and models to the organization and conduct of internal control in various countries, consider control procedures, stages of control of business processes, as well as the organization of internal control at enterprises.Methodology. In the process of achieving the set goals, the methods of scientific knowledge were used: dialectical; analysis and synthesis, comparison. The research is based on the study of relevant scientific and periodical economic literature.Results. Тhe Authors proposed the stages of control of business procedures and the procedural model of internal control of the economic part of the final Assembly shop at the JSC «VASO», which is able to increase the efficiency of the internal control system, which can be a business tool for executives and Board of Directors, and also eliminate all kinds of risks.

Internal control system and mechanism of Chinese listed companies: an empirical study

ABSTRACT Based on the analysis of the internal control theory of Listed Companies in China and the United States, it is found that there are some differences in the definition, objectives and elements of internal control between China and the United States. The analysis shows that the internal control of Listed Companies in China is generally effective from 2013 to 2017, but it is decreasing year by year. Comparing the operation of Chinese and American listed companies in 2017, it is found that there are still significant differences in performance and internal control early warning system of different industries. The empirical results show that corporate governance level, marketization, information disclosure, internal control evaluation and weak audit links are the main reasons for the performance differences between Chinese and American listed companies. Therefore, some reasonable suggestions are put forward to improve the corporate governance mechanism and internal control efficiency.

Comprehensive approach for assessment of internal control efficiency system

The article will be beneficial for professionals and managers of all levels, whether indirectly or directly involved in the process of organizing and implementing risk-based internal control in various fields of activity. The article summarizes the results of research in the direction of developing a scientific and methodological apparatus for assessing the effectiveness of the functioning of the internal control system of a budgetary institution within the system of the Ministry of Defense of Ukraine.
 The study empirically confirms and theoretically proves that the approaches proposed in the comprehensive approach must be taken into account when assessing the effectiveness of the internal control system by representatives of internal audit, not only within the Ministry of Defense of Ukraine, but also in other central executive authorities.
 The study presents the results of an empirical analysis of the choice and justification of indicators, which confirmed the possibility of taking them into account in further studies.
 The article presents the algorithm of performing consecutive scientifically substantiated stages, which in its complexity makes it possible to distinguish a complex method of solving a scientific problem in assessing the effectiveness of the functioning of the internal control system of the Ministry of Defense of Ukraine.

The Effect of Implementing Accounting Information Systems on the Internal Control Efficiency in the commercial banking sector in the Kingdom of Saudi Arabia: أثر استخدام أنظمة المعلومات المحاسبية على كفاءة الرقابة الداخلية في قطاع المصارف التجارية في المملكة العربية السعودية

This study aimed to examine the impact of accounting information systems on the efficiency of internal control in the commercial banking sector in Saudi Arabia. The accounting information systems are the main engine and infrastructure of contemporary management and the main source of information. This topic was chosen for its importance, which stems from the importance of the efficiency of internal control, whether for researchers, workers or stock holders in a key sector (banks). In terms of the methodology of the study; the study relied on the inductive method in the theoretical review. In the application framework, the analytical descriptive method was adopted. The study data were collected by means of the research tool represented in the questionnaire. A sample of the study was presented by the staff of the commercial banks in Saudi Arabia. The SPSS program was used to analyze the study data. The most important results of the study, the existence of a clear objective of accounting information systems according to the views of the sample study. Internal control is one of its first goals and concerns that it is based on protecting the bank's assets. One of the main implications of the use of accounting information systems in the effectiveness of internal control is to contribute to the provision of indicators and standards that assist management in detecting financial deviations to assist the internal control department of banks.

KINERJA PROYEK DITINJAU DARI SISTEM PENGENDALIAN INTERNAL, AUDIT INTERNAL DAN EFISIENSI BEBAN PROYEK (Studi Pada PT Maratama Cipta Mandiri)

The low performance in carrying out projects at PT Maratama Cipta Mandiri led to a decrease in project revenue, it can be proven that in practice there are still ineffective and efficient project implementation in the management system, audit results, and project costs. Referring to this, this study aims to determine the impact of internal control, internal audit, and the efficiency of project costs on project performance. The method used is a survey method with a quantitative approach, and descriptive verification research type. The data source used is primary data as a result of 88 questionnaires distributed to employees. The results of the study based on the partially proposed hypothesis shows that internal control has a significant positive effect on project performance, internal audit has no significant negative effect on project performance, the project load efficiency does not have a significant positive effect on project performance, and simultaneously internal control, internal audit, and project cost efficiency have a significant positive effect on project performance. Other results found that there are variables that have the greatest influence on project performance is internal control, with the accounting system dimensions of the accounting system design indicators. From the results of this study it is expected that the company can improve the internal control system so that it can improve the performance of the project at PT Maratama Cipta Mandiri. Keywords: internal control, internal audit, project load eficiency, project performance.

Research on Internal Control Construction System of Energy-based Enterprises Based on COSO and Financial Quality

Under the general situation of energy conservation and emission reduction and building a green ecological economy, the financial internal control of energy enterprises has become the main way for enterprises to reduce energy production costs, ensure the security of corporate asset funds, and improve the income of energy enterprises. For the reading of relevant literatures on the internal control of energy resources enterprises, the research direction of the research is to analyze the internal control construction system of energy production enterprises based on the five elements of COSO and financial quality, and find that the accounting audit work in energy enterprises pays attention to the degree is not high. According to the control environment, risk assessment and control activities, the trend of declining shows that the communication between the audit and other departments of the enterprise is not efficient, the internal supervision is weak, and the quality of financial information has a great impact on internal control. The following conclusions are obtained, which requires accountants to pay more attention to corporate auditing, strengthen the awareness of energy audit risk prevention, improve the construction of auditing system, and strengthen internal control in auditing activities to improve the quality and efficiency of internal audit control of energy production enterprises.

EVALUATION OF THE STATE OF INTERNAL AGRICULTURAL CONTROL IN THE SYSTEM OF MANAGEMENT OF SCIENTIFIC RESEARCH INSTITUTIONS

EVALUATION OF THE STATE OF INTERNAL AGRICULTURAL CONTROL IN THE SYSTEM OF MANAGEMENT OF SCIENTIFIC RESEARCH INSTITUTIONS

ОЦЕНКА УПРАВЛЕНИЯ ДЕБИТОРСКОЙ ЗАДОЛЖЕННОСТЬЮ КАК БАЗОВЫЙ ЭЛЕМЕНТ СИСТЕМЫ ВНУТРЕННЕГО КОНТРОЛЯ ПРЕДПРИЯТИЯ ТРАНСПОРТНО-ЛОГИСТИЧЕСКОГО КЛАСТЕРА (НА ПРИМЕРЕ ООО ТК «РЕЙЛ КОНТИНЕНТ»)

The paper considers the problem of receivables management in the internal control system in the context of the crisis of insolvency of logistics enterprises of the Far East. The relevance of this study is determined by the interrelation of the financial state of enterprises of the logistics cluster with the efficiency of credit policy carried out by it and daily work with debtors. The authors developed the structural model of the formation of the receivables of the selected segment of enterprises. Based on the current techniques of monitoring of the receivables’ level, the authors proposed the scheme of the integrated technique of the receivables analysis for the enterprises of transport sector, identified the main ways of improvement of the efficiency of internal control over the receivables taking into account the size of a company and its financial ability. The results of the practical part of the study based on the implementation of author’s technique of analysis of the receivables of the logistics enterprises proved the existence of problems and bottlenecks of the companies of the selected territorial cluster which are, in particular, the lack of appropriate control over the due dates, the receivables amount and its correlation with the level of credit debt, the expediency of debt settlement; low level of record keeping allowing carrying out the control over receivables; poor organization of work with debtors (the preliminary check of their solvency, identification of the level of non-payment risk). The authors specified three sectors of the main ways for improvement of the receivables state: bookkeeping and auditing, analysis and monitoring, control automation. The paper shows the efficiency of the proposals through the reassessment of the receivables management system in the case of their implementation within the enterprises of the logistics cluster in aggregate.

ВЕДОМСТВЕННЫЙ КОНТРОЛЬ ЗАКУПОЧНЫХ ПРОЦЕССОВ КАК ИНСТРУМЕНТ ОБЕСПЕЧЕНИЯ ЭКОНОМИЧЕСКОЙ БЕЗОПАСНОСТИ БЮДЖЕТНЫХ УЧРЕЖДЕНИЙ

The article discusses organizational and methodical questions of departmental control of purchasing processes for ensuring economic security of budgetary institutions. On the basis of the carried-out analysis of special economic literature and practice of implementation of state procurements, according to the existing legislation, the system approach provides completeness of legal regulation, interrelation of all necessary stages and processes of purchases. As a result, there has been formed the unified information system in the sphere of purchases, which allows to automatically monitor the data published or unpublished by customers on the official portal of purchases and to compare these data for identification of discrepancies, such as a plan of purchases, scheduled plans, notices on carrying out purchases, protocols and reports on contracts. It contributes to further development of fair competition and anti-corruption by means of monitoring the market prices, ensuring transparency of activity of both customers and suppliers in the sphere of state procurements. Special attention is paid to the organization and methodical approaches of implementation of field and documentary departmental checks. In the exercise of departmental control over procurements there has been suggested to apply tabular forms of procurement data collection. There has been stated the need to develop domestic policy of ensuring economic security of business-processes and methodology of risks assessment at the level of the budgetary establishment, which will promote an increase in efficiency of both internal and departmental control.

Empirical Research on Internal Control Construction System of Accounting Costs in Power Enterprises Based on Big Data Perspective

The research direction of the thesis is the research on the internal control evaluation strategy of power companies from the perspective of big data. Based on the five elements of internal control, the questionnaires are designed. The professional accountants responsible for internal audit control in power companies are investigated as questionnaires. Through the analysis of the survey results, big data processing and data relationship were established. It was found that the five elements of internal control are not highly valued in the accountant audit work of power companies. According to the control environment, risk assessment and control activities, the trend is decreasing, and the audit and other departments of the enterprise The communication between the two is not efficient, the internal supervision is weak, and the quality of financial information has a greater impact on internal control. It is concluded that accountants need to pay attention to the internal audit of power companies, strengthen the awareness of corporate audit risk prevention, improve the construction of auditing systems, and strengthen internal control in auditing activities to improve the quality and efficiency of internal audit control of power companies.

Financial Restatements: Trends, Reasons for Occurrence, and Consequences - A Survey of the Literature

We provide a comprehensive overview of the findings regarding the causes of financial restatements in the US. Acknowledging that restatements may derive from intentional and unintentional misreporting, we assign the findings to one of three pillars: i) expected benefits, ii) expected costs and iii) executive characteristics. Assuming that managers are rational decision-makers, the likelihood of misreporting increases in expected benefits and decreases in expected costs. While expected benefits reflect executives’ desire to maximize private benefits through compensation contracts, expected costs refer to the likelihood that misreporting will be revealed through internal or external controls. Given that efficiency of internal and external controls derives from the ability to avoid both, intentional and unintentional misreporting, we also review literature that investigates less severe restatements. We support the existing research by enhancing the understanding of restatements in light of severe and less severe restatements, identifying research gaps and organizing fragmented findings into a larger picture. Ultimately, our survey might inform regulatory bodies, auditors, standard setters and executives regarding restatements of financial statements.

Internal Control and Operational Efficiency

AbstractIn this study, we examine whether internal control over financial reporting affects firm operational efficiency. We find that operational efficiency, derived from frontier analysis, is significantly lower among firms with material weaknesses in internal control relative to firms without such weaknesses. We also find that the remediation of material weaknesses leads to an improvement in operational efficiency. Additional analyses indicate that the negative effect of material weaknesses on operational efficiency is stronger for firms with a greater demand for higher quality information for decision making, for weaknesses that are deemed to be more severe, and to a certain extent, for smaller firms. Overall, our study extends the literature by presenting systematic evidence on the effect of effective internal control on operational efficiency and informs the debate over the costs and benefits of the internal control reporting requirements under the Sarbanes‐Oxley Act of 2002.

Do Female Executives Make Different Financial Policies? Evidence from Chinese Listed Company

We examine the female executives and their impact on corporate financial policies, including investment decision, external financing, quality of internal control and cost efficiency. We find that those female executives who are risk aversion invest less in expenditure investment decision and engage less external financing. In addition, we also find that firms with female executives exhibit higher quality of internal control and greater cost efficiency. Our results are consistent with conservatism of female executives. Furthermore, we identify whether female executives make corporate financial policies differently in high-growth and low-growth industry. We find that female executive emphases on restrain expansion decision in high-growth industry, but internal management in low-growth industry. Finally, we find that the conservatism behavior of female executives is more benefit on financial performance in low-growth industry.

The Effect of Using it Tools on the Efficiency of Internal Control as Perceived by the Internal Auditor

This study aims to Identifying the concept of internal control efficiency related to control environment under the usage of IT tools, and Identifying the role of risk assessment increasing the internal control efficiency through the optional use of IT tools. The study community consists of internal auditors in the Islamic banks in the State of Kuwait. The study tool consisted of preparing a questionnaire that takes into account the objectives and variables of the study. Most results: The internal auditor has a role in assessing the information security policies which depend on It tools and preventing their penetration or the modification of the accounting programs and their contents illegally, and The ability of the internal auditor to assess the monetary value of the risks that face the bank and which are resulted from using IT tools; and consequently, the financial statements express truly the monetary events that occur in the bank. Most recommendations: The information technology tools are double-edged for the internal auditor. The first edge represents the risks related to penetrating or modifying the financial statements as well as the unauthorized access. The second edge represents the advantages that the auditor can utilize from using IT tools represented in the speed and accuracy in exchanging accounting data and information, and Holding seminars and conferences specialized in audit information technology whose axes focus on using various IT tools in the internal auditing process and functions.

Research on Evaluation of the Efficiency of Internal Control of State Owned Listed Corporation Based on DEA

Research on Evaluation of the Efficiency of Internal Control of State Owned Listed Corporation Based on DEA

COSO implementation in Lebanese firms: the impact of organisational culture and leadership value competency on perceived internal control efficiency - an exploratory approach

The purpose of this study is to test the impact of organisational culture and leadership value competency on perceived internal control efficiency in Lebanese firms. The research uses the COSO framework as the basis of assessing internal control framework. And it uses the competing values framework (CVF) model for assessing organisational culture and the Management Skills Assessment Instrument (MSAI) to measure the 12 leadership styles and value competencies. The sample consisted of 225 respondents and was composed of internal audit service providers. The data were collected with the help of questionnaires using a Likert scale ranging from 1 to 5. Results were analysed and revealed that COSO is positively perceived amongst internal auditors in Lebanon as enhancing internal control effectiveness; organisational culture and value orientation had a significant impact on overall perception; and finally that leadership value competencies play a key role in enhancing the positive perception of COSO effectiveness.

COSO implementation in Lebanese firms: the impact of organisational culture and leadership value competency on perceived internal control efficiency - an exploratory approach

COSO implementation in Lebanese firms: the impact of organisational culture and leadership value competency on perceived internal control efficiency - an exploratory approach