Elements Of Internal Control System Research Articles

Effect of Risk Assessment as an Element of Internal Control System on the Quality of Financial Reporting Information in Local Governments of Rwanda

Risk assessment as a component of the internal control system allows the management to stay focused on the entity's pursuit of its operation and produce high-quality financial reporting. Despite the adoption of risk assessment as part of an internal control system for years, Rwanda's local governments faced many persistent problems in their financial reporting information. Thus, this research evaluated the effect of risk assessment as a component of the internal control system on the quality of financial reporting in Rwandan local governments. The study was conducted in the 30 districts of Rwanda. Primary data was collected using the questionnaire, and the reports of the Office of General Auditors of Rwanda were consulted to collect secondary data. The findings from descriptive analysis showed a high level of risk assessment with a mean of 3.87. The level of the quality of financial reporting information was high, with a mean of 4.02. Findings from correlation analysis showed that the correlation coefficient between risk assessment and quality of financial reporting information was 0.648, and the p-value was 0.00. The linear equation from regression analysis showed a constant of 2.135, indicating that if the risk assessment as an independent variable stays constant, a positive change in the quality of financial reporting information of 2.135 is observed. The model shows that for a unit increase in risk assessment quality, financial reporting information is predicted to increase by 0.493 units. The management of local governments of Rwanda has been recommended to put more effort into considering the potential for fraud to assess risks for achieving the objective of avoiding public fund embezzlement

Internal Control System and Financial Performance of Saving and Credit Cooperatives

The study aims to assess the effect of the internal control system on the perceived financial performance of saving and credit cooperatives. Internal controls were measured using four elements (i.e. control environment, risk assessment, control activities, and information and communication) as prescribed by the Tedway Committee of Sponsoring Organizations (COSO) framework. Perceived financial performance has been measured through the increase in ROA, ROE, deposit and lending, liquidity and EPS. A descriptive and casual comparative research design was adopted to describe the relationship and effect between the elements of internal control system and financial performance. Out of 86 saving and credit cooperatives registered under the legislative area of Butwal Sub-Metropolitan city, only 38 has been considered as sample. A structured questionnaire on 5 point likert scale ranging from strongly disagree to strongly agree has been adopted. The findings of the study has revealed that the SACCOs (Shaving and Credit Co-operative enjoy a sound financial performance partly because of implementing and maintaining effective internal control system.

Внутренний контроль как фактор снижения налоговых рисков

Purpose: To consider the possibility of creating a subsystem of internal tax control aimed at providing accounting (financial) reporting reliability as well as at observance of legislation requirements, regulating conduct of an accounting. Methods: The theoretical basis of the study was an analytical review of scientific publications of professionals specialized in tax risk matters as well as it was federal laws and regulatory legal acts of the Russian Federation in the field of taxation. We can underline from the considered models the major components of internal control system (ICS): risk assessment, control means, control environment, information and communication, monitoring. Results: It’s pointed that the most important element of internal control system is, namely, the process of risk clarifying and analysis as an effective mean of business protection and, incidentally, the need in author’s development of tax risk matrices on the example of value added tax and corporate income tax as an integral part of the internal tax control subsystem model. Practical importance: The possibility for creating an effective subsystem of internal tax control, taking into account enterprise individual features, their specifics and activity scale.

Key Aspects of the Control Environment in the Context of Sustainable Development of Organisation

The integration of sustainable development into business, which is the development that meets the needs of the present without compromising the ability of future generations to meet their own needs, is one of the key trends of the beginning of the 21st century. The purpose of this study is to consider the effect of this concept on the element of internal control system: the control environment. The relevance of the work is confirmed by the correlation between the internal control system and the efficiency and effectiveness of the activities of organizations, as well as the increasing influence of social and environmental factors on managerial decisions of economic entities. In the process of scientific elaboration of the problem, general scientific research methods were used: comparative analysis, detailing and generalization, systematization. As a result, the author examined the main elements of the control environment: organizational structure, functions and duties of departments and employees; strategy, principles and goals of the organization, regulations for the implementation of operations; corporate culture, philosophy and management style, ethical values and rules of conduct; personnel policy — and the recommendations for their improvement from the sustainable development aspect. It is concluded that the introduction of the proposed innovations into the control environment will serve as the foundation for the remaining components of the internal control system.

EVALUASI SISTEM PENGENDALIAN INTERN TERHADAP PEMBERIAN KREDIT BUMDES BANGUN BERSAMA

The purpose of this research is to know about the credit giving system and the implementation of internal control system of credit giving in BUMDes Bangun Bersama Kepunduhan village. The data that used in this research is qualitative data.and the analytical method is depcriptive qualitative method. The result showed that the credit giving system in BUMDes Bangun Bersama Kepunduhan village is consist of 5 procedures that is credit request, credit analysis, decision awarding, credit dibursement and repayment of credit. The implementation of internal control system of credit giving in BUMDes Bangun Bersama are based on 5 elements of internal control system. Based on the result of the quesstionnaire it can be concluded that the internal control system of credit giving of BUMDes Bangun Bersama Kepunduhan village Kramat sub-district Tegal district is exactly effective.Keywords : Internal Control System, Credit, BUMDes

ANALISIS SISTEM DAN PROSEDUR PENGHAPUSAN BARANG MILIK NEGARA PADA KANTOR WILAYAH KEMENTERIAN AGAMA PROVINSI SULAWESI UTARA

State goods are all goods purchased or obtained at the expense of the State Revenue and Expenditure Budget or derived from other legitimate acquisitions. Elimination of state property is the final activity of the implementation of the management of state property and is an act that is not simple for government agencies. The publication of decisions on the abolition of state property occurs through procedures that are often seen as complicated and time consuming. This study aims to determine whether the system and procedures for the elimination of State Property at the Regional Office of the Ministry of Religious Affairs of North Sulawesi Province has been in accordance with Regulation of the Minister of Finance No. 83 / PMK.06 / 2016 on the Procedures for the Implementation of Destruction and Elimination of State Property, as seen from or not fulfillment of elements of internal control system of government according to Government Regulation Number 60 Year 2008 regarding Government Internal Control System. The research method used in this thesis research is descriptive method whose purpose each data collected, analyzed, then drawn a conclusion and the type of research used is qualitative descriptive. The results of this study concluded that the system and procedures for the elimination of state property in the Regional Office of the Ministry of Religious Affairs of North Sulawesi Province have been in accordance with the Regulation of the Minister of Finance No. 83 / PMK.06 / 2016 on the Procedures for Implementation of Destruction and Elimination of State Property, and has fulfilled the elements of the internal control system of government according to Government Regulation Number 60 Year 2008 regarding Government Internal Control System.Keywords: Analysis, Systems and Procedures, Elimination of State Property.