Federal Financial Research Articles

Utilizing Robotic Process Automation and Artificial Intelligence in Auditing to Mitigate Audit Risks

Automating repetitive tasks significantly increases the efficiency of operations by identifying repetitive tasks, then choosing the appropriate tools for automation, designing successful workflows, testing, iteration, monitoring the performance of operations continuously, and making the necessary adjustments, which helps auditors accomplish their mission. This research aims to highlight the urgent need to develop the skills of accountants and auditors to maintain alignment with the swift advancements in digital technology in the accounting field to reduce fraud risks and protect stakeholders. The study relied on the applied aspect of 157 questionnaires distributed to a sample of auditors working in auditing firms and Federal Financial Supervision Bureau auditors. We used a five-point Likert scale to answer the questions on the questionnaire and the SPSS V.25 statistical package to look at the data and test our research hypotheses. We used Pearson correlation, simple regression, the coefficient of determination and interpretation R2, and the standard coefficient of regression B. Our research showed that using robotic process automation and artificial intelligence in auditing would make audited financial statements more reliable. Adding auditors' skills, artificial intelligence, and process automation will also significantly mitigate inherent control and detection risks. Furthermore, enhancing the quality of auditing

Performance Evaluation of Select RRBs in Maharashtra State: A Comparative Study Using Capital Adequacy Ratio’s of Camel Model

The performance evaluation of Vidharbha Konkan Gramin Bank (VKGB) and Maharashtra Gramin Bank (MGB) operating in Maharashtra state is carried out. A comparative evaluation is also performed between them by using Capital Adequacy of CAMEL Model Hence, this chapter embodies different ratios under Capital Adequacy of CAMEL model. The banking sector is a critical component of the financial system and cornerstone of the global economic system. Banks are one of the oldest financial institutions in the financial system, which play a vital role in the mobilization of deposits and the disbursement of credit among the different sectors of the economy. A sound banking system acts as a fuel injection that stimulates economic productivity and industrial development by mobilizing savings and investing them in high return endeavors. Various research reports show that countries with a well-developed banking system have high GDP rate and higher economic growth. In the recent past, banking regulators and policy makers have proposed banking regulation by using the CAMEL (Capital adequacy, Asset quality, Management efficiency, Earnings and Liquidity) rating model to evaluate and assess the performance and financial soundness of the bank. CAMEL rating system is an important internal supervisory method to assess and distinguish financial institutions. The Federal Financial Institutions Oversight Board of USA was introduced CAMEL model for the first time in 1979. Regulations of the banking sector always monitors the performance of the banks to ensure efficient financial system based on CAMEL ratios.

Using magnetic marketing tools to enhance the financial performance of the Iraqi general insurance company

The research aims to use magnetic marketing tools across its dimensions of (message, market, and media) to enhance the financial performance of the Iraqi General Insurance Company, as well as to identify the strengths and weaknesses in the company’s performance. Adopting the descriptive approach And Analytical Data and information were collected through the financial statements, annual reports and statistics of the company under study, relying on the annual reports issued by the Iraqi Insurance Bureau, as well as the performance evaluation indicators issued by the Federal Financial Supervision Bureau, represented by (the index of relative importance of insurance activity revenues, and production follow-up indicators) The fulfillment of plans, the development of production, the productivity of producers, the number of documents, and the loss rate) for the years (2018-2022). The research reached a set of results, the most important of which was that adopting magnetic marketing tools would enhance the revenues of insurance activity, reflected in the financial performance of the researched company.

Federal Public Resources in Response to Natural Disasters in Rio Grande do Sul

Objective: The objective of this study is to analyze the sources and allocation of federal public resources applied to natural disasters in the Brazilian state of Rio Grande do Sul in 2024. Theoretical Framework: Based on Public Choice Theory, the study investigates how self-interests can influence the allocation of public resources, which is relevant in the context of Brazilian public administration. Method: Using a descriptive and documentary approach, this qualitative research collected data from provisional measures and the Transparency Portal, analyzing the sources and amounts of funds quantitatively and their allocations qualitatively through the lens of Public Choice Theory. Results and Discussion: Most of the funds come from Official Credit Operations (41.80%) and Federal Financial Charges (13.97%). The allocation covers a range of areas from climate change mitigation to support for microenterprises. The diversity of allocations suggests an effort to meet multiple emerging needs and maximize political benefits, reflecting the influence of self-interests in public management. Research Implications: The study emphasizes the importance of transparency and accountability in public management, especially in disaster situations. By revealing how resources are allocated and identifying potential influences of self-interests, the research contributes to the formulation of more efficient and equitable public policies. Detailed understanding of the allocations can improve accountability and integrity in resource allocation, promoting governance practices that increase public trust in government actions. Originality/Value: Applying Public Choice Theory, this study offers insights into the efficiency and equity of resource allocation for natural disasters in Rio Grande do Sul, contributing to the literature on disaster management and public administration in Brazil.

Финансовый мониторинг в сфере государственного оборонного заказа

The article discusses the legal and organizational issues of financial monitoring in the field of state defense order. The provisions of the legislation regulating the state defense contracts and anti-money laundering and the financing of terrorism are analyzed in order to establish the legal basis for the implementation of financial monitoring in the field of public health. The activities of authorized credit organizations and the Federal Financial Monitoring Service in this area are analyzed. The main threats in the field of state defense orders are noted, which can be countered thanks to financial monitoring.

THE IMPACT OF AN AUDITOR'S ADHERENCE TO THE PRINCIPLES OF NEUTRALITY, PROFESSIONAL INDEPENDENCE, PROFESSIONAL CONFIDENTIALITY, AND TRUST IN THE TAX ACCOUNTING PROCESS

Objective: This study aims to demonstrate the impact of the auditor's adherence to the principles of neutrality, professional independence, confidentiality and trust in the tax accounting process and the importance of this commitment to the tax administration. The study also examines the extent to which the tax administration relies on the auditor's report and financial statements in determining the taxable income of taxpayers.
 
 Methodology: The study's objectives were achieved by collecting data from a survey distributed to certified auditors working for the Iraqi Board of Accountancy and Audit, employees of the Federal Financial Control Bureau, and employees of the General Tax Authority. A total of 230 questionnaires were distributed, 200 of which were returned and verified for statistical analysis.
 
 Results: The results indicate a statistically significant positive effect at the 5% level for the impact of neutrality and professional independence on the tax accounting process. This means that an increased focus on auditor neutrality and independence will contribute to a 0.469 increase in the efficiency of the tax accounting process. In addition, there is a positive and statistically significant moral impact below the 5% level for the impact of professional duty of confidentiality and trust in the tax accounting process. In other words, ensuring auditors follow the rule of professional confidentiality and trust can improve tax accounting efficiency by 0.350.
 
 Conclusion: Professional ethics and codes of conduct serve as guides for auditors to exhibit appropriate professional behavior while performing their duties to meet society's ethical requirements. The professional code of ethics is the outcome of the profession's efforts to develop and organize rules. It assures the tax administration that the financial statements submitted by the taxpayer (companies) and approved by the auditor who adheres to those rules are truthful and fair.

Geographic Reach of Surgery Residency Applicants During In-Person and Virtual Interviews.

Background Virtual interviews for surgery residency may improve interview opportunities for applicants from underrepresented in medicine (UIM) and lower socioeconomic backgrounds. Objective To compare the geographic reach of surgical residency applicants during in-person versus virtual interviews. Methods This study compared applicants for the 2019 (in-person) and 2020 (virtual interviews) application cycle for surgery residency. Geographic reach (GR) was defined as the distance between applicants' current location and the program. Federal Financial Institutions Examination Council's website supplied socioeconomic data using applicants' geographic locations. Applicant demographics, United States Medical Licensing Examination (USMLE) scores, and geographic distance to program were collected. Multivariable analyses examined GR with interaction terms between interview type, UIM status, and socioeconomic status, while controlling for USMLE scores. Results A total of 667 (2019) and 698 (2020) National Resident Matching Program applications were reviewed. Overall, there was no difference in GR for applicants during in-person and virtual interviews in multivariable testing. UIM status had no association with GR for in-person interviews, but virtual interviews were associated with an increased GR for UIM applicants compared to non-UIM applicants (235.17; 95% CI 28.87-441.47; P=.02). For in-person interviews, applicants living in communities with poverty levels ≥7% had less GR vs those in communities with levels <7% (-332.45; 95% CI -492.10, -172.79; P<.001), an effect not observed during virtual interviews. Conclusions There was no difference in overall GR, or the proportion of UIM applicants or those from higher poverty level communities, but virtual survey interviews during the COVID-19 pandemic were associated with increased GR for UIM and from lower socioeconomic backgrounds applicants.

Soft Regulatory Capture and Supervisory Independence: A Case-Study on Wirecard

623The traditional view on regulatory capture focuses on capture as a distortion of public purpose through a malicious relationship, corruption and possible collusion between the regulator and the industry (hard capture). This paper argues that regulatory capture can arise from political and institutional conditions which do not allow or favour the supervisory independence of authorities from both the industry and the government (soft capture). This paper’s argument is illustrated through a case-study on the German Federal Financial Supervisory Authority’s (BaFin) handlining of the Wirecard AG case. The basis for the analysis are the findings from the Committee of Inquiry of the German Bundestag and the European Securities and Markets Authority (ESMA) Fast Track Peer Review (FTPR) through three lines of inquiry: (1) lack of balance sheet control; (2) the short selling ban; and (3) Wirecard AG’s stock trading by BaFin’s employees. This paper concludes that BaFin was not hard captured in the Wirecard AG case as de facto influence cannot be proven. Instead, its de jure dependency vis-à-vis the MoF (as implicitly endorsed by German law) might have contributed to a case of soft regulatory capture – especially in the aspect of the short selling ban. The paper then analyses the reforms enacted by Germany and promoted by Europe in post-Wirecard case.

Association of Socioeconomic Factors and Severity of Bronchiolitis Hospitalizations.

It is unclear if socioeconomic status (SES) factors influence severity of illness of patients hospitalized with bronchiolitis. This study was conducted to identify SES factors including the Center for Disease Control and Prevention's Social Vulnerability Composite Index (SVI), estimated income, proportion of minority, proportion of living below poverty, insurance status, and number of household members associated with length of stay (LOS) and intensive care unit admission. Infants hospitalized at a tertiary care urban center for bronchiolitis were identified using International Classification of Diseases codes. Federal information processing system codes were identified from home address and paired with SVI and 2018 census tract. Other measures of SES were obtained from the Federal Financial Institutions Examination Council. Number of household members, insurance, age, sex, and history of prematurity were recorded from patient chart. Length of stay was modeled with mixed effects negative binomial regression and pediatric intensive care unit (PICU) admission with mixed effects logistic regression with random intercept at the census tract and adjustment for clinical factors. A total of 417 infants had median age of 144 days (interquartile range (IQR): 61, 357) and 136 (33%) were born premature. Median LOS was 62 hours (24, 136) with 97 (23%) patients admitted to the PICU. Median household members were 4 (4, 5). For each increase in household member, there was 7% increase in LOS (incidence rate ratio 1.07, 95% confidence interval: 1-1.14, P = .038). Social Vulnerability Composite Index, subcategories, insurance status, estimated income, percent of minority, and percent of poverty did not show any associations with length of hospitalization or PICU admission. Increasing number of household members may be associated with increased bronchiolitis hospital LOS. We find no associations with other SES measures.

Adoption of the ISA 500 and its Impact on Audit Quality and Fraud Reduction: Evidence from Iraq

This study aims to demonstrate how adopting the international auditing standard 500 will improve audit quality in audit agencies. The Financial Supervision Bureau auditors and the possibility of benefiting from the research results prompted a recommendation to the Auditor Profession Council to adopt the two international standards of evidence and to accomplish the study's objective; the Auditor Profession Council has adopted these standards. A questionnaire form was adopted for this purpose, and 100 questionnaires were distributed to a sample of auditors in Iraqi auditing agencies and 100 questionnaires to auditors in the Federal Financial Supervision Bureau. All 200 distributed questionnaires were retrieved, and the data were analyzed using the statistical analysis programs SPSS 23 and Amos to test hypotheses based on the path analysis model. The research concluded that the Iraqi Accounting and Supervisory Standards Board must adopt International Auditing Standard 500 due to the impact of this standard on audit quality and fraud reduction.

COMPETENT ADMINISTRATIVE AUTHORITIES IN COMBATING MONEY LAUNDERING

The Iraqi legislature and the most of the national and international legislation have criminalized money laundering operations by granting the Competent administrative authorities represented by: The Central Bank of Iraq, The Federal Integrity Commission, and the Federal Financial Supervision Bureau, a fundamental and active role in Controlling &amp; auditing, inspecting and investigating the Financial and banking system, by setting strict regulatory legal rules that regulate the work of the entities Subject of Supervision under the Law Central Bank of Iraq in force .

Activating the Elements of Performance Audit Report (Economic - Efficiency - Effectiveness) in Measuring the Performance of External Control Agencies

Purpose: The research aims to shed light on the theoretical and defining aspect of performance audit in light of the economic elements of the report, efficiency and effectiveness, and its reflection on the performance of external control. Theoretical framework: the external control represented by the Federal Financial Supervision Bureau and the effective role played by the performance audit in diagnosing the performance elements represented by the economy, efficiency, and effectiveness in the work of external control. Design/methodology/approach: The research methodology relied on the inductive approach in defining the problem of the study by defining the role that performance auditing provides in diagnosing the points of a defect in the external control to shift from the general to the specific, as well as relying on the deductive approach in order to shift from the specific to the general by generalizing the recommendations and highlighting what Elements of the performance report (economic, efficiency, effectiveness). Findings: the economic component. There is a waste of the available energy due to the long-term vacations granted to auditors working in the Federal Bureau of Financial Supervision. In terms of the efficiency component, the performance of the Federal Bureau of Financial Supervision decreased in answering complaints received on the whistleblowing service. Financial institutions in government institutions, as well as a decrease in the element of effectiveness when exploiting the allocations allocated to them in the annual financial budget. Research, Practical &amp; Social implications: Moreover, a statement of the impact on the applied side of the elements of the performance report (economic, efficiency, effectiveness) on auditing the performance of the work of the external oversight bodies in the Iraqi environment, represented by the Federal Financial Supervision Bureau. Originality/value: This study is one of the very few studies that focus on the performance audit elements (economic, efficiency, effectiveness) in the performance audit report on the work of the Federal Financial Supervision Bureau because of the role of these elements in diagnosing strengths and defects in performance.

Investiranje u "Sondervermögen" fondove u Nemačkoj - analiza pravne strukture, regulatornih zahteva i performansi

This paper provides an analysis of "Sondervermögen fonds", or special investment funds, in Germany. These funds are structured as separate accounts, providing additional protection for investors, as their assets are legally separate from the assets of the fund manager. The Federal Financial Supervisory Authority (BaFin) regulates "Sondervermögen fonds", ensuring that they are managed responsibly and in compliance with the German Investment Code (Kapitalanlagegesetzbuch or KAGB). The KAGB sets out the legal framework for the operation of "Sondervermögen fonds" and covers various aspects, including authorization, investment restrictions, custody and administration of assets, supervision, and regulatory measures. The paper describes the legal structure, regulatory requirements, and performance of "Sondervermögen fonds", highlighting their advantages over other investment vehicles. "Sondervermögen fonds" have become a significant tool for investors in Germany and are expected to continue playing a crucial role in the country's investment landscape.

The Relationship Between the Policies and Procedures of International Auditing Standard (220) Quality Control and Enhancement of Audits

The research paper aims at knowing the link between the policies and procedures of the International Auditing Standard (220) quality control and enhancing the audit process, increasing the reliability of its output, developing its capabilities and capabilities, diversifying its activities and services provided, access to quality and reducing the expectations gap, so the policies and procedures of the International Auditing Standard (220) control were Quality, the guarantee to reach this and consequently the customer’s satisfaction, which helps in providing a neutral technical opinion that expresses the economic and financial position of the unit and its business activity honestly and fairly. Quality and enhancing audits, the research was based on the hypothesis (there is no significant correlation between the policies and procedures of the International Auditing Standard (220) Quality Control and Enhancement of Audits), the practical aspect of the research was completed by designing a questionnaire number (115) distributed On a number of auditors working in the Federal Financial Supervision Bureau, private auditing offices and companies, in order to know the extent of the linkage and impact achieved by the policies and procedures of the auditing standard. Quality in enhancing audits. The results reached through this paper are as follows:) 1) The results of the statistical tests showed general agreement about the relationship between the policies and procedures of the International Auditing Standard (220) and the strengthening of audits by audit firms and offices. As for the recommendations, they are as follows: (1) Obligating auditing companies and offices to implement the policies and procedures of International Auditing Standard (220) Quality Control, and emphasizing their application amid strict control procedures.

Geographic Reach of Surgery Residency Interviews During In-Person and Virtual Interviews

INTRODUCTION: Virtual recruitment for Surgery residency may improve interview opportunities for applicants from URM and lower socioeconomic backgrounds. We aim to estimate the impact of virtual interviews for Surgery residency on applicants’ geographic reach. METHODS: Retrospective cohort of applications for surgery residency for the 2019 (in-person) and 2020 (virtual interviews) in an academic surgery residency. Geographic reach (GR) was the distance between applicants’ current location and Beth Israel Deaconess Medical Center where interviews were conducted. Demographics, USMLE scores and geographic distance to target program were collected. Federal Financial Institutions Examination Council’s (FFIEC) website was used to obtain socioeconomic data. Multivariable analyses with interaction terms were conducted. RESULTS: Six hundred sixty-seven and 698 applications were reviewed in the 2019 and 2020 match, respectively. Overall, there was no difference in GR for in-person and virtual interviews (p = 0.826). For non-URM applicants, virtual interviews had no impact on geographic reach (-52.57 miles, 95% CI -150.60-45.47; Table 4) while for URM applicants, virtual interviews increased GR by 240.14 miles (95% CI 7.55-472.72, p = 0.043). For applicants from communities with low poverty levels, virtual interviews decreased GR by 195.33 miles (95% CI 372.53-18.12, p = 0.0316) while for applicants from communities with high poverty levels, virtual interviews increased GR by 238.91 miles (95% CI 34.08-443.73, p = 0.022). Analyses controlled for USMLE Step 1 score (p > 0.05). CONCLUSION: Virtual recruiting might increase interview opportunities for surgery residency for applicants of URM and lower socioeconomic backgrounds. Educational leadership should optimize virtual recruitment opportunities as part of the strategies to promote diversity in surgical training.

The Quality of Audit Work Under Expert System

The research aims to extrapolate the repercussions of the use of expert systems in the work of the external auditor on the quality of audit, as the research problem was that despite the use of these techniques in audit work, there is a problem related to the efficiency and effectiveness of these technological systems used in audit work, the feasibility of their use and the extent of their impact: The quality of the audit process.&#x0D; The researchers adopted the questionnaire as a tool for collecting study data from a community composed of auditors in auditing offices and companies in Iraq, and the auditors of the Iraqi Federal Financial Supervision Bureau. The number of recovered and valid questionnaires reached (100), or 76% of the total number of questionnaires distributed.&#x0D; The researchers concluded several results, the most important of which was that the auditor in auditing offices and companies in Iraq, in addition to the auditor of supervisory bodies, are aware of the positive effects of using expert systems in the work of the external auditor on the quality of audit work.&#x0D; The researchers also concluded many recommendations, the most important of which are: the need for the regulatory authorities, whether in the public sector represented by regulatory bodies, or audit offices and companies, to benefit from these modern technologies, the need for professionals and audit offices to invest in this modern technology, the need to integrate modern technologies related to the accounting profession And auditing the curricula of Iraqi universities, institutes, and colleges

Using the Results of Rosfinmonitorings Work in Criminal Proceedings

The Federal Financial Monitoring Service (Rosfinmonitoring) currently possesses complete and comprehensive information whose analysis makes it possible to monitor the whole chain of financial transactions, links, agreements through which criminal gains are legalized, transformed into other assets and the capital is then transferred abroad. However, to date the procedure for giving the results of Rosfinmonitorings financial investigations the status of evidence in the criminal process has not been legally regulated. Since Rosfinmonitoring is not a law enforcement body, or a subject of operative search and evidence-collection work, the materials of its financial investigations cannot be directly used as evidence in a criminal case and need legalization. As the information in the materials of a financial investigation constitutes bank secrecy, a direct attempt to use it as proof could be dismissed by the court as inadmissible evidence because it was obtained by law enforcement bodies without a court sanction. In order to give the status of admissible evidence to the information obtained during a financial investigation of the deposits and accounts of the persons involved, the investigator, with the agreement of the head of the investigation agency, or an inquiry officer, with the agreement of the prosecutor, should petition the court about the initiation of investigatory actions according to the procedure stated in Art. 165 of the Criminal Procedure Code of the Russian Federation, and attach all the documents obtained from credit organizations as a result of the courts ruling to the materials of the criminal case. The authors present a comparative analysis of financial and preliminary investigations, describe the specifics of using the materials of financial investigations in criminal proceedings and the procedure of Rosfinmonitorings cooperation with law enforcement bodies with the goal of investigating and solving crimes.

Germany

The Financial Sector Assessment Program (FSAP) conducted a focused review that primarily assessed banking regulation and supervision of Germany’s less significant institutions (LSIs).1 Germany accounts for 1,324 of about 2,400 total LSIs in the Euro Area (representing 40 percent of Germany’s banking sector assets and approximately 55 per cent of total Euro Area LSI assets). As Germany is part of the Euro Area, the regulation and supervision of banks takes place within the European Central Bank’s (ECB) Single Supervisory Mechanism (SSM). The Federal Financial Supervisory Authority (BaFin) and the Deutsche Bundesbank (BBk) are responsible, under the oversight of the ECB, for the supervision of LSIs.

The Role of the Accounting Profession in Controlling Environmental Pollution According to Requirements of Social Responsibility in Industrial Companies

Accounting as an information system is not only affected by the environment, but also affects it through its active role in making and implementing decisions, and this important role is achieved through information related to the environmental activities performed by the economic unit, and for the purpose of performing its mentioned role, it is necessary to strengthen accounting with procedures and treatments that can keep pace with the developments taking place. In the environment surrounding the economic unit, and be able to explain the economic phenomena that it performs, and this requires an effort from researchers and specialists in this field. Preparing the methodology is the first important step in the preparation of scientific research, through which the problem, its importance and the hypotheses on which it is based will be determined to reach the goal of the research, and then the methodology and sample of the research will be determined. In this aspect, the researcher relied on several means to obtain data and information related to the topic of research, which are laws, instructions and legislation related to environmental activity, financial statements and reports issued by the Federal Financial Supervision Bureau in Iraq, reports issued by the Oil Industry Company, personal interviews with employees, and the use of statistical methods in Calculation of pollution rates One of the results of the research is that industrial companies do not respond to performing their role in controlling pollution in an effective manner, unless there is a legal obligation that other industrial companies do the same work. Descriptively and financially, as well as the need for the organization to include pollution control within the structure of its objectives, and then the costs of pollution control should be included within the framework of its planning budget.

Accounting and the U.S. Constitution: The Evolution of Federal Financial Accounting and Reporting Practices

ABSTRACT This study surveys and provides insights into the arc of federal government financial reporting developments, including the reporting mandate contained in the Constitution of the United States. Federal financial reporting has recently surpassed several significant milestones. The U.S. Government Accountability Office and Office of Management and Budget celebrated the 100th anniversary of their founding in 2021. Meanwhile, the Chief Financial Officers Act of 1990 and the Federal Accounting Standards Advisory Board have reached the 30-year mark. Progress during the last 20 years has focused on extending the requirements of the Chief Financial Officers Act, improving federal financial reporting standards, and increasing transparency through easily accessible open data.