Implementation Of Internal Control System Research Articles

The Effect of the Government Internal Control System on the Performance of Government Agencies

This study aims to analyze the impact of the Government Internal Control System, budget, and organizational commitment on the performance of government agencies in Bogor City. Using a descriptive survey method, this study involves 36 Regional Government Organizations, with 10 Regional Government Organizations purposively selected as the sample. Data were collected through questionnaires, and results were analyzed using multiple linear regression to test the hypotheses. The findings indicate that Internal Control System, budget, and organizational commitment significantly influence government agency performance, both overall and partially. The combined influence of these three variables on the performance of government agencies in Bogor City reaches 44.5%. These findings highlight the importance of effective Internal Control System implementation, adequate budget allocation, and strong organizational commitment in improving government performance. This study contributes by providing insights for policymakers in Bogor City to strengthen these aspects to achieve more optimal governmental performance.

The Effect of Implementing Internal Control Systems According to the COSO Committee in Reducing Money Laundering in Jordanian Commercial Banks

This study sought to determine the effects of an internal control system implementation for banks according to the COSO Committee and its role in reducing money laundering in Jordanian commercial banks, a questionnaire was designed distributed, and analyzed by 45 participants working as external auditors (chartered accountants) for Jordanian commercial banks, and the analytical and descriptive methods were applied, with one sample using the T-test. The study showed several results, including the impact of internal control systems with their eight components in reducing money laundering, as well as the existence of interest and awareness by the departments of Jordanian commercial banks of the importance and role of internal control systems according to the COSO Committee, and the importance of the availability of the elements of the internal control system from a controlled environment, the existence of an information and communication system, monitoring and follow-up to contribute to reducing money laundering. The study recommended adopting a self-assessment model for regulatory risks in banks because of its advantages in explaining the types of risks surrounding the banks related to the concepts, operations, and stages of money laundering.

An Analysis of the Development of Investment Banks' IPO Business under the Registered System

Under the reformed registration system, the role of investment banks in the Initial Public Offering (IPO) business has evolved significantly from the approval system. As crucial "gatekeepers" of the capital market, these banks now bear the responsibility of thoroughly examining issuance application materials for truthfulness, accuracy, and completeness. While the IPO business promises a prosperous future for investment banks, it also presents considerable challenges. Some banks face issues such as insufficient adherence to prudent examination requirements, lax establishment or implementation of internal control systems, and the need for improved information management. To enhance their sponsorship business, it is recommended that investment banks optimize talent training, internal management control, risk management, and intelligent information system construction. Cultivating professional sponsorship talents with comprehensive skills, reinforcing ethical standards, and conducting thorough reviews of IPO companies are crucial. Furthermore, optimizing the management system, establishing effective communication mechanisms, and enhancing risk management capabilities are essential steps. Leveraging advancements in computer technology, the construction of a secure and reliable intelligent information system is advised. As the reform progresses, investment banks should bolster international exchanges, cooperation, and professional competitiveness to evolve into reputable international brand banks.

Analysis Of The Implementation Of Internal Control System On Non Performing Loan (A Case Study On Bank BJB KCP Cicurug)

This research aims to determine the implementation of internal control systems on credit delinquency in Bank BJB KCP Cicurug. The variable used in this research is the internal control system. This research is a qualitative study using a qualitative descriptive method, where data is collected from the research object and the internal control system in Bank BJB KCP Cicurug is analyzed. The data collection methods used in this research are interviews, observations, and literature review. The results of the research show that Bank BJB KCP Cicurug has implemented a comprehensive internal control system in managing credit risks. The credit granting process is conducted through strict evaluation stages, including credit feasibility analysis and financial assessment. Credit monitoring and supervision are carried out continuously to identify potential credit delinquencies and take appropriate actions. Bank BJB KCP Cicurug also has accurate and transparent accounts receivable recording procedures and a professional debt collection team. Additionally, the bank has a careful bad debt provisioning policy to manage problematic debts. Although the internal control system implemented by Bank BJB KCP Cicurug has significantly contributed to managing credit risks, the research also identified several challenges that need to be addressed.

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

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

Analisis Penerapan Sistem Pengendalian Internal Atas Akuntabilitas Pengelolaan Keuangan Desa di Desa Sidorukun Kecamatan Randangan

Septian Sulistiawan, 2024. “Analysis of the Implementation of internal Control System on Accountability of Village Financial Management in Sidorukun Village, Randangan Subdistrict”. Accounting Study Program, Department of Accounting, Faculty of Economics, Universitas Negeri Gorontalo. The Principal Supervisor: Mattoasi, S.Pd,.SE M.Si, Ph.D The Co-supervisor: Lukman Pakaya, S.Pd., MSA. This research aimed to answer how the implementation of the internal control system on accountability related to village financial management in the governmentof Sidorukun Village, Randangan Subdistrict, Pohuwato Regency. This study was qualitative research using a descriptive analysis method. The research data sources used primary and secondary data was obtained from documentation of the internal control system on the accountability of village financial management in Sidorukun Village was quite good and structured based on applicable regulations. However, in village financial management, it was found that the management of village wealth and assets was not accountable, and there was a lack of qualified human resources due to educational issues. This indicates that the internal control system in maximizing village financial management is optimal in its implementation, although there is a lack of knowledge among village officials in terms of village financial management, requiring continuous assistancefrom local government offcials.

Analysis of The Influence of Financial Information Systems, Internal Control Systems, and Information Technology on Quality of Financial Reports

The present study investigates the effects of information technology utilization, regional financial management information system implementation, and internal control system implementation on the integrity of financial reports generated by regional governments. A causal connection distinguishes the present investigation. Surveys were utilized to collect data, and questionnaires were distributed to respondents as part of the methodology. Respondents to the study were government employees. The samples used in this study were selected through convenience sampling. The research approach employed in this investigation was multiple regression analysis. According to this research, no observable correlation between local governments' degree of information technology implementation and the caliber of financial reports they generate can be identified. Nevertheless, the integrity of financial reporting can be improved through the implementation of financial management information systems and internal controls. An effective financial management information system can facilitate the production of financial reports of superior quality that adhere to specific regulations. The above system should address data security issues, timely information retrieval, report precision, report variety, and compliance with governmental financial report standards. Similarly, the enhancement of financial report quality generated by local governments can be achieved by implementing a resilient internal control system comprising communication, monitoring, the control environment, risk assessment, and control measures. The concurrent implementation of internal control systems, information technology implementation, and financial management information system establishment all contribute to improving the quality of financial reports produced by local governments.

The Influence of Procurement Compliance in Public Procurement Performance: A Case of Bahi District Council, Tanzania

Purpose: This paper aims to investigate the factors influencing procurement compliance in public procurement performance within the Bahi District Council in Tanzania.
 Design/methodology/approach: A descriptive research design was employed to gather data from 55 respondents through a closed-ended questionnaire.
 Findings: The study found that internal control systems, users’ knowledge, and ethics significantly affect procurement compliance at a significance level of p < 0.05.
 Practical implications: To enhance compliance with public procurement acts and regulations, policymakers are urged to create an enabling environment for the implementation of internal control systems, users’ knowledge, and ethical standards in public entities.
 Paper type: Empirical research.

The Role of Organizational Ethical Culture Moderating the Influence of Leadership Style and the Effectiveness of Internal Control System Implementation on Government Employee Performance

The Role of Organizational Ethical Culture Moderating the Influence of Leadership Style and the Effectiveness of Internal Control System Implementation on Government Employee Performance

Logistic Regression to Predict BPK’s Audit Opinion

The auditor uses the audit results of the local government financial reports to provide a professional statement in the form of an opinion and recommendations in the audit report. These opinions and recommendations are important for the local government's policy because they contain guidelines for its improvement. Purpose. This study examines the effect of audit findings (Internal Control System, non-compliance with regulations, and audit recommendation follow-up) on BPK's audit opinion using a case study of the Regional Governments in Kalimantan Zone. Methodology/approach. The logistic regression was used to determine the effect of audit findings and follow up on the BPK's opinion of audit results. This study uses secondary data (BPK Semester Examination Results Summary or IHPS) collected from 2018 to 2023. Findings. The results showed that audit findings (the internal control system and non-compliance with regulations findings) significantly negatively affected the BPK audit opinion on the financial statements in the Kalimantan region. In addition, the follow-up examination results significantly positively impact the BPK audit opinion on the financial statements in the Kalimantan region. The result was that the lower findings of the internal control system and non-compliance with regulations resulted in a better audit opinion of BPK. In addition, the higher the index follow-up on audit results, the better the acquisition of BPK audit opinion is generated. Originality/value. This study extends and contributes to the extant BPK audit opinion literature by providing new insight into how audit findings affect BPK's audit opinion in the Kalimantan zone settings. Practical implications. This finding implies that local governments must improve the implementation of internal control systems and compliance with regulations and consistently undertake BPK recommendations to increase the quality of financial reporting. The findings offer vital evidence to improve the quality of financial reporting in driving local governments' service quality. Limitations. This study only uses data from the Kalimantan region, so the generalization of the study results does not apply nationally and may cause bias in the method. To minimize bias, the next researcher can use a larger sample of data, not just one area.

Internal Control as an Aid to Accountability in the Public Service: A Case Study of Ibarapa East Local Government, Oyo State.

Internal Control System (ICS) is the process by which private or public organization governs its activities for effective and efficient operations, reliability of her financial accountability and compliance with applicable laws and regulations. This paper investigated how the implementation of ICS has aided the performance, accountability, transparency and efficient management of resources in the public service in which Ibarapa East Local Government was used as a case study. It is a survey research design and both primary and secondary sources of data were explored. The data were gathered through questionnaire, interview, source document, official gazette, circulars and local magazine (The Ibarapa News), and from key stakeholders, government officials, employees and community representatives. The data were analysed using Descriptive Statistics, the Statistics Process Control (SPC) charts and the non-parametric test – the Chi-Square. Findings revealed that the administrative and accounting internal controls strategies were perceived as normal even with the non-autonomous status of all local governments in Nigeria and also well implemented in line with the council’s management culture and other elements of internal control processes. All the null hypotheses were rejected. The Chi-square X 2c = 23.045 > X 2t = 14.067; degree of freedom (df) being 7 and at 0.05 level of significant. All the control conditions on the Statistical Process Control (SPC) chart were at Upper Control Limit (UCL) except for the Risk Assessment and Exposure influenced by ethnic social problems of banditry and other crisis. The paper concluded that ICS has aided accountability of the Local Government through efficient and prudent resource management, transparent and financial integrity, internal and external audits, prevention of misappropriation of funds, enforcement and compliance with legal and regulatory requirements, as well as risk management and mitigation. Ultimately, the study has contributed to the improvement of public sector performance, service delivery, and public trust in Ibarapa East Local Government in particular, Oyo State Local Government Service Commission in general. The study recommended that Ibarapa East Local Government should prioritize the strengthening of internal control mechanisms to enhance accountability by establishing clear lines of responsibility, providing adequate training to staff members, implementing regular internal and external audits, and fostering a culture of transparency, gender balance, and ethical behavior and quick report to resolve communal crisis.

Analysis Of The Implementation Of Internal Control System On Non Performing Loan (A Case Study On Bank Bjb Kcp Cicurug)

This research aims to determine the implementation of internal control systems on credit delinquency in Bank BJB KCP Cicurug. The variable used in this research is the internal control system. This research is a qualitative study using a qualitative descriptive method, where data is collected from the research object and the internal control system in Bank BJB KCP Cicurug is analyzed. The data collection methods used in this research are interviews, observations, and literature review. The results of the research show that Bank BJB KCP Cicurug has implemented a comprehensive internal control system in managing credit risks. The credit granting process is conducted through strict evaluation stages, including credit feasibility analysis and financial assessment. Credit monitoring and supervision are carried out continuously to identify potential credit delinquencies and take appropriate actions. Bank BJB KCP Cicurug also has accurate and transparent accounts receivable recording procedures and a professional debt collection team. Additionally, the bank has a careful bad debt provisioning policy to manage problematic debts. Although the internal control system implemented by Bank BJB KCP Cicurug has significantly contributed to managing credit risks, the research also identified several challenges that need to be addressed.

Pengaruh Penerapan Sistem Pengendalian Internal Pemerintah Dan Kompetensi Sumber Daya Manusia Terhadap Pencegahan Kasus Fraud / Kecurangan Akuntansi Dengan Pendekatan Fraud Hexagon (Studi Kasus Pada Pemerintah Provinsi Sumatera Utara)

This research aims to determine the effect of implementing the Government's Internal Control System and Human Resource Competency on preventing cases of accounting fraud / fraud using the Fraud Hexagon Approach (Case Study of the North Sumatra Provincial Government). The research method used is a survey method by distributing questionnaires to respondents consisting of government employees involved in internal control processes and accounting activities. The questionnaire measures the level of implementation of the government's internal control system, human resource competency, and cases of accounting fraud that occur. The Fraud Hexagon approach is used to analyze factors that influence fraud prevention. This research uses quantitative methods, primary data collection techniques by distributing questionnaires. The population and sample were 50 respondents and used a total saturated sampling technique. This research uses SPSS statistical tools. Data were analyzed using multiple regression analysis method. The results of this research show that the implementation of the Internal Control System has a positive and significant effect on preventing accounting fraud cases. Human Resource Competency has a positive and significant effect on preventing accounting fraud cases. And the F test shows that the Implementation of the Internal Control System and Human Resource Competency has a simultaneous and significant positive effect on the Prevention of Accounting Fraud Cases.

Implementasi Sistem Pengendalian Internal dalam Upaya Mewujudkan Good Governance pada Lembaga Layanan Pendidikan Tinggi

The study aims to test the effect of the performance of the internal supervision unit, organizational culture, and organizational commitment toward the internal control system implementation for the implementation of good governance at the higher education service institution. Data analysis techniques using path analysis using data obtained from the distribution of questionnaires in 150 respondents. The results showed that the implementation of the internal control system in an effort to realize good governance was influenced by the performance of the internal supervision unit, organizational culture, and organizational commitment. The performance of the internal supervision unit has a very high influence on the implementation of the internal control system so that it is able to realize good governance in Higher Education Service Institutions.

Internal Control Weakness and Corruption: Empirical Evidence from Indonesian Local Governments

Purpose: Corruption still becomes a serious problem in Indonesia in the decentralization era. This paper aims at providing a comprehensive empirical examination regarding the effect of internal control system weaknesses on corruption in Indonesian local governments (LGs). Theoretical framework: By drawing the concept from the fraud theories and agency theory, the study explores the internal control weaknesses as corruption determinants in LGs. Design/methodology/approach: We use secondary data from the related regulating bodies in Indonesia during 2010-2018 fiscal period from 508 LGs with total of 4530 observations, analyzed with panel data regression. Findings: Our findings suggest that the corruption in Indonesian LGs has not experienced significant decrease during the observation period. The internal control system implementation also still has significant weaknesses that has not improved from 2010-2018. Our analysis demonstrates that internal control weakness positively affects corruption. Further analysis also reveals that all internal control weakness element also has positive effect on corruption, both the weaknesses in the budget, revenue, and expenditure administration, the weaknesses in accounting and financial reporting, and the structure weaknesses. Research, Practical & Social implications: Based on the research findings, our study emphasizes that the internal control system implementation in Indonesian LGs needs urgent improvement to support the prevention of corruption in local level. The policymakers are required to take strategic efforts for internal control system reform in the LGs to reduce the likelihood of corruption by irresponsible local authorities. Originality/value: The study fills the limitation in Indonesian corruption literature by providing one of the earliest empirical investigation that comprehensive covers the whole Indonesian regions.

STUDY OF IMPLEMENTATION AND GOOD CORPORATE GOVERNANCE INTERNAL CONTROL SYSTEM (Case Study In a Family Firm)

This research aims to examine the implementation of Good Corporate Governance (GCG) and the implementation of the company's Internal Control System. Data analysis used the positivism philosophy method in a family business company engaged in the manufacturing industry since 1946. Informants were determined by purposive sampling, namely, taken from the top management, middle management, and staff groups. Data analysis techniques in this study used a case study approach through interviews. Research results: GCG implementation is not following best practices by this family business company, and Internal Control System implementation has not become aware by management.

The Effect of SISKEUDES Implementation, Village Apparatus Training, and Internal Control System on The Quality of Village Financial Reports

This study aims to determine the effect of SISKEUDES implementation, village apparatus training, and internal control system on the quality of village financial reports in Simeulue Regency, Aceh Province. The population included 138 villages in Simeulue Regency with a census sample of 138 villages. The respondents comprised three people in each village, with a total of 414 respondents. This study performed multiple linear regression using the SPSS (Statistical Package For Social Science) program for data analysis. The results showed that the implementation of SISKEUDES, technical training, and internal control systems show a positive and significant effect on the quality of village financial reports in Simeulue Regency. The implementation of SISKEUDES has positive effects on the quality of village financial reports in Simeulue Regency. The technical training and the internal control system also showed positive effects on the quality of village financial reports in Simeulue Regency. The implication of the finding is expected to be the basis for policymakers to implement SISKEUDES, technical training for village officials, and the implementation of an internal control system. This also becomes a practical guideline for villages to manage their finances.

The Impact of Internal Control Defects on Enterprises’ Commercial Credit Financing

Internal control indicates the quality of a firm’s financial information, and thus influences the trust relationship between the firm and its trading partner. This paper based on the previous analysis assumes that internal control quality would affect trade credit financing got from trading partner. Based on the sample of listed companies in the scope of implementation of internal control system from 2014 to 2017, this paper uses multiple regression model. This study reveals that there is a significant negative correlation between material weaknesses of internal control and the trade credit financing, which supports our hypothesis that a firm gets less trade credit financing when material weaknesses are found in its internal control system.

Internet Financial Report And Determinants of The Quality of Financial Statements of Non-Profit Organizations

The purpose of this research was to assess the elements that influence the quality of non-profit financial statements and the moderation of voluntary disclosures on the Internet Financial Report. " Human Resource Competence, Implementation of Financial Accounting Standards for Non-Profit Organizations, Internal Control Systems, and Accounting Information Technology Use on the Quality of Financial Reports of Non-Profit Organizations with Voluntary Disclosure of Internet Financial Reports as Moderating Variables,". The population in this research is all non-profit organizations in the form of NGOs or NGOs in Indonesia. The research sample is focused on NGOs and NGOs registered with the Ministry of Foreign Affairs until 2021, as well as partners from donor agencies USAID and AUSAID. The primary data sampling technique was convenience sampling, where respondents who were willing to fill out the questionnaire were sampled. Distribution of online questionnaires and surveys through private domains obtained 90 respondents from the financial staff of non-profit organizations that were willing to participate in this research. The data was processed using a multiple linear regression analysis. The results of this research indicate that the influence of human resource competence, the implementation of financial accounting systems for non-profit organizations, the implementation of internal control systems, and the utilization of accounting information technology affect the quality of financial reports of non-profit organizations, while voluntary disclosure of internet financial reports strengthens the relationship between the utilization of accounting information technology and report quality. Finance for nonprofit organizations.

Detrminan Kualitasl Laporanl Keuangan Pemerintah Daerah (Studi KasuslPada BPPKAD Kabupaten Situbondo)

The problem studied by the author is regarding the influence of human resource competence related to the preparation of financial reports, and the application of the internal control system at BPPKAD Situbondo Regency. The purpose of this study was to determine the effect of human resource competence related to the preparation of financial reports, and the application of an internal control system to the quality of financial reports at BPKAD Situbondo Regency. The data analysis technique used was a quantitative approach. Data was collected by distributing questionnaires to 50 respondents and 44 respondents from the questionnaire results were received back to be processed by selecting samples using purposive sampling. Tests carried out using validity and reliability tests. Data processing was analyzed using descriptive statistics with multiple linear regression analysis techniques using SPSS. Based on the results of the study concluded that Human Resource Competence (HR) has a significant influence on the Quality of Local Government Financial Reports (LKPD) and the Implementation of Internal Control Systems (SPI) has a significant influence on the Quality of Local Government Financial Reports (LKPD).