Implementation Of Internal Control System Research Articles

Employee quality, monitoring environment and internal control

We investigate the effect of internal control employees (ICEs) on internal control quality. Using special survey data from Chinese listed firms, we find that ICE quality has a significant positive influence on internal control quality. We examine the effect of monitoring on this result and find that the effect is more pronounced for firms with strict monitoring environments, especially when the firms implement the Chinese internal control regulation system (CSOX), have higher institutional ownership or attach greater importance to internal control. Our findings suggest that ICEs play an important role in the design and implementation of internal control systems. Our study should be of interest to both top managers who wish to improve corporate internal control quality and regulators who wish to understand the mechanisms of internal control monitoring.

ANALYSIS OF INTERNAL CONTROL COSO THE FUND MANAGEMENT ZAKAT, INFAQ AND SHADAQAH (ZIS) (A Case Study Foundation Social Fund Al-Falah branch of Jember)

<p><em>Accountability is often required community of a public institution. Community felt the need to know the flow of funds and the performance of the institution. LAZ and BAZ interested in reporting funds are transparent in order to maintain public trust and its existence by implementing internal control as well. Own internal control policies and procedures are used in operating activities to provide reliable information and ensure compliance with applicable laws or regulations in an organization. Internal control is absolutely necessary in an organization to avoid fraud and is used to ensure the effectiveness and efficiency of resources in order to avoid the loss or waste so that optimal utilization of funds. In addition, internal control is useful in preventing deviations from the implementation of activities as well as corrective actions when deviations have occurred. The purpose of this study was to investigate the application of internal control over management of funds, identify the strengths and weaknesses related to internal control </em><em>i</em><em>s</em><em> </em><em>applied, </em><em> </em><em>and provide recommendations on the implementation of internal control systems in the Foundation fund management Social Fund Al-Falah branch of Jember. The method used is descriptive qualitative method and the object of the study is the management of the fund's internal control procedures. This study analyzed the internal control in accordance with the internal control components according to COSO and weaknesses found in internal control Foundation Social Fund Al-Falah branch of Jember. The conclusion is that internal control over existing</em><em> </em><em> fund management activities </em><em>on </em><em>Yayasan Social Fund Al-Falah branch of Jember have some weaknesses, but overall control has been operating effectively.</em><em></em></p>

Implementation of internal control systems to combat money laundering and financing of terrorism : an applied exploratory study to the Angolan financial sector

The Angolan financial system is observing several regulatory changes that are being adopted by local banks at a considerable speed in the last years. Considering the pressured context in which such changes are being internalized, this study is intended to ascertain the level of implementation and the way that control systems are being adopted by the Angolan financial institutions, in order to prevent and combat money laundering and financing of terrorism. A survey was submitted to the banking institutions that operate in the Angolan financial sector with the purpose of understanding to what extent prevention controls and mechanisms for money laundering and financing of terrorism have been implemented, and identify the main difficulties that banking institutions are facing on the adoption of such controls and mechanisms. Using a descriptive analysis, the results show that the banking institutions consider to have implemented control systems that are capable of mitigating the risk of money laundering and financing of terrorism. The results also show that, although there are formal and concrete policies in place, the Angolan banking institutions possess deficient control tools in terms of information systems and data management and lack adequate staff training which potentially threatens the effectiveness of the controls that have been implemented.

Features of the Internal Control of Foreign Trade Transactions

The article describes the requirements of the legislation in the field of implementation of internal control system on the enterprises, a necessity and an importance of control, explores the possibilities and features of the organization of the internal control of the foreign trade transactions, analyzes all possible risks (financial, legal, market, credit, geographic) arising in foreign trade activity. The author reveals the possible methods, techniques and procedures to exercise the internal control. Besides there is documentation’s aspect under the internal control of foreign trade operations in the article. DOI: 10.5901/mjss.2015.v6n1s3p379

Pendapatan dan Persepsi Anggota terhadap Penerapan Internal Control System pada Pertanian Padi Organik

Internal Control System (ICS) is a consolidated management concerning the effort to certify organic products. Due to its collective mechanism, farmers are able to manage its agribusiness more profitably financially. The purpose of this study was (1) to analyze the differences in income levels of farmer groups who are certified organic and non-certified organic, (2) to get an overview of the implementation of ICS in farmers group Gapoktan Simpatik, and (3) to analyze the perceptions of group members towards the implementation of ICS either certified or non-certified organic. This research was on a case study at upper stream of Cideres and Cigunungjaga watershed in the district of Sukahening, Tasikmalaya, which is a member of Gapoktan Simpatik. The analysis was performed using the R/C ratio, homogeneity analysis of data by income level using the Kolmogorov-Smirnov, analysis of income differences between the two groups of independent farmers using the Mann-Whitney test, and biplot analysis for the analysis of perceptions of group members toward ICS implementation variables. The results showed that the R/C ratio for the certified group was 1.77, and for non-certified group 1.53. The average income level of certified group was Rp19,394,800/ha/year, while the non-certified Rp12,728,940/ ha/year. The results also showed that perception toward ICS implementation of certified group was better than the non-certified. Most of the certified group respondent approached the vector of all variables, which means that they were satisfied and familiar with all the variables, while the group of respondents who were non-certified did not approach the vector. The parameters that were widely varied by respondent group responses were the certified variable of purchase, handling, processing, and export, while the most uniform response variables of the respondents were variable of organizational and ICS personnel. While the groups that were not certified provided a variety of assessment on the variables of risk management and uniform assessment on external inspection and certification.

Internal control system for Islamic micro financing

PurposeThis paper aims to contribute to literature on managing Islamic micro financing by formulating and evaluating the implementation of internal control system for Islamic micro financing. It also aims to investigate the implementation of an internal control system for financing activities practiced by Baitul Maal wat Tamwil (BMT), a special micro finance organization, in Indonesia.Design/methodology/approachFirst, the paper introduces the concept of internal control system. Second, an internal control system for Islamic financing is formulated. Primary data that relate to the implementation of an internal control system for financing activities are obtained through a direct survey using questionnaires. The data are then analyzed using descriptive statistic and qualitative analysis to find the implementations of the internal control system.FindingsBMTs in Indonesia have implemented an internal control system for their financing activities. The rank of the implementation is: information and communication; monitoring; control environment; risk assessment; and control activities. This study also indicates that the implementation of authorization and consultation to the Shariah Supervisory Board was low.Research limitations/implicationsThe respondents of this study are small in number. However, the findings are valid and reliable.Originality/valueTo the author's knowledge, there is a lack of scholars' attention on the implementation of internal control especially for Islamic micro financing. Therefore, this study will provide insight to the literature on how to manage Islamic micro financing efficiently and effectively.

Implementation of compulsory internal control system within Swiss organisations: perceptions among accountants and workers in Geneva

Switzerland has introduced a new regulation that forces most SMEs to adopt an internal control system (ICS) by the end of 2008. The implementation of ICSs might not provide proper risk management approaches for the organisations. Indeed, logistical and psychological barriers might affect their proper deployments. Consequently, we have conducted two surveys: the first one addressed to the Geneva working population (417) and the second one to 225 Swiss (mostly) certified-accountants in charge of verifying the existence of ICSs.

Rizika podvodu v malých a středních podnicích

Článek vymezuje podvod a důvody jeho spáchání v podmínkách malých a středních podniků. Uvádí možné způsoby podvodu, kterými je buď rozkrádání aktiv, které je prováděno hlavně zaměstnanci, nebo podvodné účetní vykazování, které provádějí zejména vedoucí pracovníci či vlastníci, případně může být podvod páchán oběma skupinami za pomoci třetích stran. Zjistit podvod umožní jednak obecné indikátory podnikové kultury, jednak specifické indikátory vytvářející podmínky pro podvod či příležitost. Následky podvodu jsou jak peněžní, tak nepeněžní. Zabránění podvodu napomůže nastolení etické kultury pracovního prostředí, vybudování vnitřního kontrolního systému a důsledné delegování pravomoci a odpovědnosti v rámci firmy.