Financial Control Research Articles

THE CAPABILITY OF THE PUBLIC INTERNAL AUDIT FUNCTION IN SERBIA TO EFFECTIVELY CARRY OUT ITS ROLE

The aim of this paper is to assess the capability of the internal audit function in the Serbian public sector to add value to the public sector entities by performing its work effectively, to support progress of and achieve the requirements of EU Chapter 32 – Financial control, opened in 2015. We reviewed the annual reports regularly published by the Ministry of finance as well as SAI’s annual activity reports for the period from 2016 to 2022. The results of our analysis show that the internal audit function in the Serbian public sector is still at the initial stage of its development. Our recommendation refers to the change of the model of organization of the internal audit function in the small entities and providing adequate resources for internal auditor’s continual professional education.

Financial Risk Analysis of SINOSUN Technology Co., Ltd.

Nowadays, the market competition is getting bigger and bigger, and the enterprise is always facing the risk. If it does not carry on the risk research to control, the enterprise is likely to operate in the obstacle. Science and technology are the foundation of a strong country, with the continuous promotion of the strategy of strengthening the country with science and technology, science and technology companies have many business opportunities, but the opportunities are often hidden in the risk. This paper takes SINOSUN Technology Co., Ltd. as the object of the study, compares and analyzes the operating data of the industry's HONGBO Joint Stock Company and East Port Joint Stock Company, and adopts the ratio analysis method and the comparative analysis method. Combined with the relevant financial indicators, the entropy value method is used to analyze and identify the financial risk problems of SINOSUN Technology Company, including the four aspects of financing, investment, operation, and distribution, with the main problems of weak short-term solvency, low R&D efficiency, and low profitability, and then put forward relevant preventive suggestions for the enterprise's problems. This paper aims to let the company as far as possible to foresee the financial risk and control, but also hopes for similar enterprises for financial risk analysis and management to provide case reference and reference significance.

Investigating the temporal and spatial evolution of bank performance and its impact pathways in the context of financial technology development

Financial technology transforms humans and businesses as globalization and the digital economy accelerate. This affects bank performance. Thus, studying whether financial technology affects bank performance is crucial to enhancing living standards and business development. This article examines the development and interaction between financial technology and bank performance from 2012 to 2021 using standard deviation ellipses, kernel density estimation, Moran's index, and spatial econometric models. The research found that (1) financial technology development improves regional bank performance. In contrast, control variables like economic development, urbanization, tax burden, capital adequacy ratio, net interest margin, and loan-to-deposit ratio also affect bank performance. (2) From 2012 to 2021, Chinese bank performance initially grew, then declined, while financial technology declined slowly and improved rapidly. Financial technology and bank performance development were highest in the eastern coastal regions and lowest in the northwest and northeast. (3) China's financial technology and bank performance had high-high or low-low spatial agglomeration. (4) Financial technology and control variables have a spatial spillover effect on bank performance, so their development in one region can affect neighboring regions. This article provides recommendations for governments and banks based on these findings.

Admission Accounting Information System and Cash Expenditure in Financial Control

Every organization requires a well-planned and properly supervised accounting information system to effectively manage their incoming and outgoing finances. The implementation of an accounting information system is crucial for achieving the management's objectives. This study aims to assess the effectiveness of the accounting information system in managing cash receipts and expenditures, specifically in the context of financial planning and control at the Benteng City Grand Mosque. The research utilizes qualitative data obtained from primary and secondary sources. The descriptive analysis method is employed in this study. The findings indicate that the accounting information system for cash receipts and expenditures, concerning financial planning and control, is deemed sufficient as it aligns with the fundamental components of an accounting information system, including human resources, equipment, forms/documents, records, procedures and reports, and adheres to internal control procedures. Consequently, the accounting information system for cash receipts and expenditures continues to operate effectively to support financial planning and control.

Financial management analysis of Culinary Micro, Small, and Medium Enterprises (MSMEs)

Micro, Small, and Medium Enterprises (MSMEs) are the main backbone of Indonesia's economy. The challenges MSME business operators face include product marketing, technology, financial management, capital, and human resource quality. This research aims to understand the financial management applied to culinary MSMEs located on Pabrik Karung Goni Street, Delanggu, Klaten. The research methodology employs qualitative descriptive analysis with a case study approach. Data analysis involves four financial management indicators: budget utilization, recording, reporting, and control. Data collection techniques include interviews, questionnaires, and literature review. The population in this study comprises culinary business operators in the area. The research findings indicate that the understanding of MSME operators regarding budget utilization, recording, reporting, and financial control still needs to improve. Financial management is still basic, manual, and irregularly conducted, and not all business operators report their finances. This is due to a need for more understanding and knowledge of business financial management. Therefore, further learning and understanding of financial management are needed to assess businesses' health and development better.

Management of budget flows under martial law

Managing budget flows under martial law is important to ensure the security and financial stability of the state, helping to mobilize the necessary resources and concentrate them on financing key needs. This paper aims to identify and outline possible measures to balance the movement of budget flows in order to harmonize them with the goals of state policy in the field of national security. The movement of budget flows of income and expenses was assessed, and trends and changes were identified using economic and statistical methods. The assessment results confirmed the need for reasonable planning of budget flows in the context of the impact of unforeseen military events on the process of budget execution in terms of revenues and expenditures, which leads to failure to meet expenditure indicators, causes a lack of financial resources and an increase in the budget deficit. One of these measures is the improvement of budget planning, which is based on the analysis, detection, and assessment of the probability of occurrence and countering the risks related to the state’s financial system. Correlation-regression analysis confirmed the growing dependence of revenues on official transfers from the EU, foreign governments, international organizations, donor institutions, and government bodies. The results obtained are basic for developing measures to balance incoming and outgoing budget flows under martial law. They provide for the obligation to create a financial support system (including international financial aid) while strengthening state financial control measures for the timely, targeted, effective direction of budget flows, including for the security and defense of the state.

Effects of Facilitating Internal Control Mechanisms on Financial Sustainability:The Case of Local Governments in Spain

This paper provides evidence about the effects of facilitating internal control mechanisms on the financial sustainability of local governments. Specifically, it explores the effect of Spanish regulation mandating that municipalities prepare the Annual Financial Control Plan (PACF for its acronym in Spanish). The study is based on the PACFs of 77 Spanish municipalities and relates the quality of risk analysis and the scope of planned public audit activities to the financial sustainability of the municipalities. Our results show that higher quality risk-based planning and increased use of operational audits contribute to financial sustainability. We also find that municipalities with less complex structures and women in positions of responsibility, such as mayor or controller, have greater financial sustainability. In contrast, a lack of resources for the development of the control function is a limiting factor.

Signature Recognition and Verification Using Machine Learning

This project focuses on the development and implementation of a robust signature recognition and verification system leveraging machine learning techniques. Handwritten signatures serve as essential personal identifiers in numerous applications, such as financial transactions, legal documents, and access control. Traditional methods of signature verification often lack efficiency and accuracy, prompting the need for automated and intelligent systems. The proposed project aims to address this challenge by employing state-of-the-art machine learning algorithms for signature analysis. The project involves the creation of a comprehensive dataset consisting of diverse signature samples. Through the utilization of image processing and deep learning techniques, the system will extract relevant features such as stroke dynamics, pressure, and spatial characteristics from the signatures. The core of the project lies in training a machine learning model on the dataset, enabling it to learn the distinctive patterns inherent in individual signatures. During the verification phase, the developed system will assess the input signature's similarity against the stored templates, providing a confidence score to indicate the level of authenticity. The outcome of this project will be a reliable and efficient signature recognition and verification system that can be applied in real-world scenarios, enhancing security and reducing the risk of fraudulent activities. The project not only contributes to the advancement of biometric authentication systems but also provides valuable insights into the integration of machine learning in document security applications.

Exploration on the Application of ChatGPT in Corporate Financial Management

The report of the 20th National Congress of the Communist Party of China proposed to accelerate the development of the digital economy and promote the deep integration of the digital economy and the real economy. With the continuous development of generative artificial intelligence technologies such as ChatGPT, the financial industry has been profoundly affected and impacted. This article mainly combines the specific characteristics of each link of financial management, taking a listed company as an example, to explore the feasibility of the practical application of ChatGPT in specific financial management links such as financial forecasting, financial decision-making, financial control and financial analysis. After research, it is concluded that, ChatGPT can generate financial forecast reports and decision-making suggestions based on the provided data, identify and evaluate financial risks, and assist accounting personnel in conducting intelligent financial analysis. Its specific application in financial management will undoubtedly contribute to the digital transformation of enterprises.

BudgetBliss: Predictive Budget Planning using Neural Networks and Socioeconomic Factors

BudgetBliss is a transformative web application developed to revolutionize personal finance management through the integration of Artificial Neural Networks. Leveraging a sophisticated architecture, BudgetBliss provides users with a comprehensive platform to effectively plan and manage their income. The development process involved meticulous data collection and preprocessing, followed by the implementation of an Artificial Neural Network model. By analyzing users' spending habits and categorizing income, BudgetBliss offers detailed financial breakdowns tailored to individual needs. This methodology ensures the accuracy and relevance of the insights provided to users. Furthermore, BudgetBliss serves as an inadvertent educational tool, fostering financial literacy as users gain insights into their spending habits and make informed decisions about their money. Additionally, the automation of categorization, analysis of spending habits, and provision of personalized insights significantly reduce financial stress, empowering users to feel in control of their finances and focus on achieving their goals with confidence. In today's fast-paced society, where financial management significantly impacts overall well-being, BudgetBliss addresses the critical need for a system that enhances household financial control. By enabling users to make informed decisions and gain a deeper understanding of their financial landscape, BudgetBliss facilitates a path towards contentment and fulfillment in life. Keywords - Budget planning, Personal finance, Artificial Neural Networks, Financial management, Well-being

Проблемы организации внешнего финансового контроля в муниципальных образованиях Республики Саха (Якутия)

The article addresses issues related to the organization of external municipal financial control in municipal districts of the Republic of Sakha (Yakutia), problems concerning the organization of external municipal financial control, in particular, the analysis of legislative provisions related to the legal status and transfer of powers to the Accounts Chamber of the RS (Yakutia).

Arranging internal financial control in public institutions: Obstacles and strategies to mitigate them

Subject. This article discusses the issues of arranging effective internal financial control in government institutions of the Russian Federation. Objectives. The article aims to identify the key problems of arranging internal control in government institutions and develop recommendations for its improvement. Methods. For the study, I used the methods of comprehensive and statistical analyses, and comparison. Results. The article finds that preliminary control has significant advantages in preventing budget violations. An analysis of the performance indicators of institutions demonstrates the availability of reserves for improving the quality of internal control. Conclusions. Based on the results of a comprehensive study, the article concludes that it is necessary to solve a number of problems in the field of personnel, technological and methodological support for arranging an effective system of internal financial control in public institutions. The implementation of the proposed measures will contribute to improving the effectiveness of the use of budget funds.

Strengthen Financial Risk Prevention and Control Capabilities and Improve the Quality and Efficiency of Financial Supervision

The book Research on the Formation and Prevention of Systemic Risks in the Banking Industry from the Perspective of Platform Finance combines the complex network characteristics of the real banking industry and brings the two relatively independent financial markets of platform finance and banking industry into the same complex network framework. The analysis breaks through the traditional systemic risk research paradigm, fills the shortcomings of traditional economic methods in analyzing the internal structure of the system, provides a new way to study the topological structure characteristics of bank networks, and broadens the perspective of systemic risk research.

Internal and external subjects of financial control over the reliability of financial statements

The article substantiates the relevance of research into issues of increasing the reliability of financial reporting. In this regard, the formation of an effective system of financial control over accounting reporting is identified as a primary task. To solve this problem, it is necessary to increase the efficiency of control both in the process of generating reports and subsequent control over already compiled reports. Internal control is provided directly by the accounting service and independent internal controllers, including an internal controller, auditor, and auditor. External control is provided by tax services in the process of forming the state information resource of accounting financial statements and audit companies. The article examines the functions of the main elements of the financial control system for accounting reports and suggests directions for improving the efficiency of their activities. Particular attention is paid to internal control and external audit systems, the functioning of which should be aimed at increasing the reliability of financial reporting in the interests of external users.

Financial big data management and intelligence based on computer intelligent algorithm

With the acceleration of China’s economic integration process, enterprises have gained greater advantages in the fierce market competition, and gradually formed the trend of grouping and large-scale. However, as the scale of the company increases, the establishment of a branch also causes many problems. For example, in order to obtain more benefits, the business performance of the company can generate false growth, resulting in financial and operational risks. This paper analyzed the current situation and needs of enterprise financial control from two aspects of theory and practice, combined with specific engineering projects, taking ZH Group as an example, according to the actual situation of the enterprise. The article first introduces the basic situation of the enterprise; Then, the financial control strategy was designed, and different modules were designed to achieve financial control; Afterwards, use a reverse neural network to evaluate the effectiveness of financial management and risk warning; Relying on particle swarm optimization algorithm to seek the optimal solution and applying it to financial management and risk warning, in order to improve the level of introspection and risk management in decision-making. Finally, the value of computer intelligence algorithms in financial big data management is evaluated by constructing a financial risk indicator system. Through the analysis of enterprise financial management, the total asset turnover rate of ZH Group decreased by 0.39 times in 5 years. After 5 years of adjustment of the company’s business, the company’s overall operational capabilities still needed to be improved, and the company’s comprehensive business capabilities also still needed to be improved. Therefore, the application of intelligent algorithms for financial control is very necessary.

Formation and Positioning of New Legal Institutions in Financial Law: а Study on Their Characteristics

This article examines the formation and positioning of new and already-established financial and legal institutions. Emphasis is placed on the importance of establishing common financial and legal institutions. The article argues that there is currently an active process of shaping common financial and legal institutions, as exemplified by the emergence of the “emission law” and “offset and refund of fiscal payments” institutions. The institution of offset and refund of fiscal payments is modeled after the institution of “public financial control” and includes a complex set of financial and legal rules governing various types of financial relationships, unified by overarching characteristics. Furthermore, this article posits that the financial and legal institution of mandatory audits, which has gained prominence in the field of financial law in the 21st century, should be categorized not within the general but within the specialized field of financial law. It is argued that the formation of financial law institutions within the general framework follows the same pattern as the institution of “public financial control”.

Study on Supply Shain Financing Scheme of A Vietnamese Coffee Company in China

This paper takes G7 Coffee, a Vietnamese coffee company, as an example to design a supply chain financing scheme suitable for the company. First of all, on the basis of explaining the concept of supply chain, supply chain financing and other related concepts, supply chain management theory, supply chain financing model, fuzzy comprehensive evaluation model and other theoretical foundations, based on the financing situation of a Vietnamese coffee company G7 coffee in China, combined with the financing problems of the company and the company's capital needs, The feasibility of supply chain financing of G7 Coffee in China for a Vietnamese coffee company is proposed. Secondly, this paper introduces the evaluation method of supply chain financing scheme of G7 Coffee in China of a Vietnamese coffee company. Finally, on the basis of clear objectives and principles of financing scheme design, an evaluation system of supply chain financing mode of a Vietnamese coffee company based on AHP is constructed. The applicability of accounts receivable supply chain financing, inventory supply chain financing and prepayment supply chain financing adopted by the company is further analyzed by fuzzy comprehensive evaluation method. The fuzzy comprehensive evaluation results show that The accounts receivable financing model is the best financing model for the supply chain financing of G7 Coffee in China of a Vietnamese coffee company. In order to ensure the smooth implementation of the supply chain financing plan of a Vietnamese coffee company G7 Coffee in China, this paper proposes to strengthen the guarantee from three aspects: financial system, credit management and risk control.

A Financial Analysis of Ryanair in UK Market

This report evaluates external environment and internal environment of Ryanair. It has certain competitiveness in the UK market, but it still faces challenges from potential entrants, suppliers, buyers, substitutes and industry competitiveness. In order to remain competitive in the market and meet customer needs, Ryanair airlines need to continuously innovate and improve services, while establishing long-term and stable cooperative relationships with partners to achieve sustainable development. The conclusion is that Ryanair has recovered from the pandemic downturn in 2023 financial year. Its risks are identified and risk management measures are analysed. First, Ryanair faces legal risks as it faces increasingly complex data protection laws and regulations. Second, in a highly competitive industry, the company faces operational risk from being exposed to significant price and other pressures. Third, Ryanair faces financial risks. Fourth, Ryanair faces cybersecurity risks and may incur increasing costs to minimize these risks. Within the company, Ryanair has established a clear functional organizational structure and clear division of responsibilities and authorities including the appointment of head of internal audit and the chief risk officer. Ryanair has implemented a risk management program across the company, with senior management responsible for reviewing and monitoring the financial and non-financial controls in place to manage risks to the business.

Performance audit as an advanced form of public administration

Since the introduction of the principles of results-based budgeting into the global practice of public administration at the beginning of the twentieth century, the role of such an indicator as the effectiveness of the functioning of public institutions has increased every year, which led to the emergence and development of such a tool of public audit bodies as a performance audit. Having originated in the middle of the twentieth century in Western countries, performance audit has over time become one of the key tools of independent public audit bodies aimed not at finding violations, but at eliminating both fundamental and less global problems in the activities of executive authorities. At the same time, the principles on which the performance audit is based can be applied in their activities not only by state audit bodies, but also by representatives of the executive authorities of various states, such as financial control bodies, executive authorities and state organizations. The basis for the proper functioning of state institutions in the rapidly changing world of our time are public administration and control systems based on the principles of permanent search for shortcomings and improvement of processes at the state and municipal levels.

Investigating the Application of Digital Tools for Information Management in Financial Control: Evidence from Bulgaria

Investigating the Application of Digital Tools for Information Management in Financial Control: Evidence from Bulgaria