Implementation Of Internal Control Research Articles

Improvement of methodological support of internal control in the cash management system of the enterprise

Currently, most business operations conducted by an economic entity, including the implementation of settlements with counterparties, associated with the movement of cash flows. Consequently, of particular relevance acquired questions implementation of internal control, which contributes to information and advisory support and optimization of financial and economic activities of the enterprise. The purpose of the article is to develop the system of methodological support of internal control of funds at the enterprise. In article theoretical bases of realization of control procedures are studied. The basic principles, the purpose and methods of internal control of funds are defined. For the development of methodological tools it is suggested to use the developed forms of working documents of internal control. These documents allow to systematize control measures, to evaluate the efficiency of accounting system organization, to generalize the results of cash and bank account transactions inspection, their appropriateness and validity; to record the revealed violations by the results of cash and bank account transactions inspection. Based on the results of internal control, the company’s management makes a decision to improve the efficiency of cash usage based on the creation of a liquidity management system.

ОБЛІК І КОНТРОЛЬ СУБ’ЄКТІВ МАЛОГО ПІДПРИЄМНИЦТВА В УМОВАХ ПАНДЕМІЇ

The article discusses the development of small businesses during the spread of coronavirus disease, the problems that have become in the way of the activities of enterprises. According to statistics, small business in Ukraine occupies about 80 percent of all operating enterprises. They are the ones who most of all suffered from the coronavirus, because it is extremely vulnerable to external factors, since it does not have enough funds and reserves to quickly adapt to new conditions of activity. The purpose of this article is to identify problematic aspects of accounting at small businesses in Ukraine against the background of the spread of coronavirus infection and to establish directions for the implementation of internal control during an exacerbation of the pandemic. In connection with the adopted quarantine measures, business entities, especially in the part of small business, were forced to stop conducting their activities for the period of the introduction of the lockdown or improve it, which led to a change in the type of economic activity. In connection with the spread of coronavirus disease, a number of laws were passed that prevented the spread of coronavirus disease and related to small businesses. As a result, atypical transactions arose in accounting and tax accounting related to payroll during downtime, the implementation of depreciation deductions for production equipment that is also not used due to quarantine, reflection of the cost of travel of employees to the place of work during the period of prohibition of travel on public transport people who do not work in emergency services. The article provides examples of the business transactions mentioned above and the transactions that should be used in such situations. With all this, it is necessary to carry out internal control, which will allow assessing the activities of the enterprise, the veracity and legality of the introduction of accounting and tax accounting. Control will help improve the efficiency of accounting, reduce shortcomings and errors, help find reserves for improving operations, and also help avoid fines, because unnecessary expenses in a pandemic can lead to losses.

PENGARUH SISTEM PENGENDALIAN INTERNAL DAN AUDIT INTERNAL TERHADAP PELAKSANAAN GOOD CORPORATE GOVERNANCE

This research is conducted based on the recently viral phenomenon of the Good Corporate Governance issue, yet in reality there is also absence in full realization by state-owned institutions to implement it as the necessity and as its obligation in community service. This proves in several corruption cases which are revealed both in State-Owned Enterprise (BUMN) and Region-Owned Enterprise, especially in Bandung. The aim of this research is to identify the influence of internal control and internal audit to the implementation of Good Corporate Governance both directly and indirectly in BUMN and BUMD in particular in Bandung. This research uses the population of BUMN and BUMD in Bandung as many as 18 enterprises which consists of 14 BUMNs and 4 BUMDs. The method used for this research is analytical description with path analysis system. The results of this research show that the implementation of internal control and internal audit systems in BUMNs are significantly better than in BUMDs. This condition is caused by the rule of Good Corporate Governance binding the BUMNs to apply its organizational management better than in BUMDs. It also proves in statistical result that shows that internal control and internal audit systems have positive effects on the implementation of Good Corporate Governance. Directly, internal control system affects positively for 61.4%, while internal audit system does for 19.2%. Indirectly, both internal control and internal audit systems affect 80.6%. From this results showed, it can be concluded that internal control system in an organization supported by the efficiency of internal audit function will result in the satisfactory implementation of the Good Corporate Governance in the organization.

The Internal Control System as a Management Function and the Element of Integrated Reporting Financial Statements

The present article is devoted to one of the most urgent problems of financial accounting organization and preparation of accounts – the issue of implementation of internal control in the companies. The authors consider the internal control as a function of management in interrelation with internal audit and risk management. The purpose of the research is to determine the level of information disclosure about the internal control system in the company's reporting. The research subject is the industrial and economic activity of chosen companies. Public integrated reporting is the object. The authors set out the following tasks in the research process: to estimate the degree of study of the problem; to analyze public reporting, including its structure, different report forms, the content of Explanatory Notes to the reporting and the working documents; to compare the reporting of various companies; and to identify the degree of information disclosure. The methodology of the research suggests an analysis of existing studies in the field of internal control, visual analysis of internal documents of the companies and their reporting and comparative assessment of reports of some companies. The authors study public accounts of the major companies, consider it from the view of completeness of disclosure of information about the internal control system, draw conclusions and give recommendations on improvement of control procedures. The authors justify that the two concepts of internal control and internal audit are not the same. However, the management of some companies does not separate them. The authors prove that internal auditing is only a part of the internal control system.

International approaches to organizing an internal control system at an enterprise in the digital era

The purpose of the study is to analyze the existing approaches to the organization of the internal control system used to effectively support the activities of enterprises in foreign countries and determine its influence and possible application in domestic practice. The study found that all elements of the internal control system are closely interconnected and ensure the effective functioning of the enterprise, providing management with reliable and impartial information on its status for management decisions. Thus, international approaches to the organization of the internal control system at the enterprise are based on the assessment of the control environment of the enterprise along with risk assessment and monitoring. Approaches to the organization of internal control of some international companies specializing in industrial engineering and the basic principles that guide them in the implementation of internal control are identified. Among the areas of increasing the efficiency of the internal control system, the possibility of using innovative technologies related to the introduction of cloud technologies, artificial intelligence, robotization of automated processes, the use of drones or blockchains is highlighted. It has been revealed that most companies abroad are focused on corporate risk management. The study determined that the internal control system should cover and organize financial and management accounting, strategic project management, operations, personnel, general management and should take into account the goals and objectives of the company. The authors found that the system of internal control in private companies differs in conditions of fierce competition.

The Effect of Internal Control on Quality Financial Reporting (Research at Star Hotels in Bandung City)

It is difficult to find a financial statement which meet the criteria of characteristic of qualitative accounting information. This might caused by several factors. One of the factor that can be analyze related to the existance of correlation to quality financial reporting is internal control. This research purpose is to analyze this existance of correlation between internal control using COSO internal control framework with quality financial reporting. Research analysis method used is partial least square with starred hotel in Bandung as its population. The sampling technique used is stratified random sampling. The result of this research shows that implementation of internal control using COSO IC framework has no correlation with quality financial reporting especially in hotel industry. This represent a situation that hotel industry are more focusing their strategy by analyzing the risk perspective rather than focusing on the control process.

Dampak Kualitas Laporan Keuangan Perusahaan Badan Usaha Milik Negara Terhadap Efisiensi Investasi

This study aims to investigate the effects of financial statements’ quality towards over/under investment, the internal controls’ implementation towards over/under investment, and moreover the internal control as a moderating variable to strengthen the financial statements’ quality to over/under investment on state-owned listed companies in Indonesia Stock Exchange and state-owned non-listed companies as well. The data analysis techniques namely logistic regression analysis is used to measure the research problems. There are 96 listed and non-listed state-owned companies (not including financial services and insurance) used as research sample during period from 2015 to 2018. The findings of this study reject first and third hypotheses stating that the financial statements’ quality does not affect over/under investment and moreover, internal control as a moderating variable could not strengthen the effect of financial statements’ quality towards over/under investment. However, on the other hand, the second hypothesis in this study is accepted proofing that the implementation of internal control has positive effect on over/under investment.
 Keywords: Quality of Financial Statements, The Internal Control, Investment Efficiency, State Owned Enterprises

The Effect of Internal Control, Information Technology and Audit on Good Amil Governance Practices

This research aimed to find out how strong the effect of the implementation of internal control, information technology and audit on Good Amil Governance. In this research, the respondents were the chief and amil at BAZNAS in South Kalimantan. The type of this research was exploratory with data collection technique using questionnaire. Data analysis method that was used in this research was descriptive analysis method, Structural Equation Modeling (SEM) with software of SmartPLS 3.0. The research result showed that the variables of internal control, information technology, and audit had significant and positive effect on good amil governance.

PENGARUH IMPLEMETASI PENGENDALIAN INTERNAL DAN KOMPETENSI PENGELOLA TERHADAP EFEKTIVITAS MANAJEMEN ASET TETAP PADA PERGURUAN TINGGI NEGERI BERBADAN HUKUM

This study aims to analyze the effect of the Implementation of Internal Control and Manager Competence on the Effectiveness of Fixed Asset Management in State Universities as Legal Entities partially or simultaneously. The population in this study is the Legal Entity State Universities in Indonesia, amounting to eleven. The sampling technique is saturated or census sampling. This research uses a quantitative approach with multiple regression analysis techniques. The results of the research show that the implementation of internal control and managerial competence has a significant positive effect on the effectiveness of fixed asset management, in Indonesian legal institutions both partially and simultaneously.Key Word: Implementation of Internal Control, Manager Competence and Effectiveness of Fixed Asset Management

Determining Factors of Corporate Governance in Women Corporative of East Java Indonesia

All over the world want organizations to be sustainable, like organizations in Indonesia. Corporate governance (CG) implementation is a must in an organization. The application of corporate governance in Indonesia is applied to organizations in the form of cooperatives. The study aimed to determine factors of corporate governance in women corporative of East Java, Indonesia. Factors that include corporate governance are internal control, the rules for members, annual member meetings. The object of this study was 159 Cooperatives in East Java, Indonesia. The implementation of coporate governance in women's cooperatives has been going well, judging by the cooperative's performance appraisal. The implementation of internal control still needs to be improved. Cooperative members have mostly fulfilled their obligations as members through payment of basic contributions and mandatory contributions. The meeting held by members of most women's cooperatives was carried out on time. Cooperatives are microfinance institutions for cooperative members. Cooperatives are organizations that are established for the welfare of members. Implementation of corporate governance in women's cooperatives will improve cooperative performance.

PENERAPAN MODEL COSO UNTUK PENINGKATAN FUNGSI PENGENDALIAN INTERNAL: STUDI PADA AGENCY ADMINISTRAÇÃO DE AEROPORTO E NAVEGAÇÃO AÉREA DE TIMOR-LESTE

Implementation of internal controls is a basic principle for internal/external auditing. Internal control becomes a basic framework to operate effectiveness and efficiency of organization activities. Implementation of the COSO internal control for ANATL agency is to improve the actual system of internal control at Dili airport, and also as requirements from ICAO standards. Requirements of air transport services, such as: (1) increased efficiency, (2) reduce costs, and (3) safety and security. This study tried to find out the implementation and problems of internal control in the agency ANATL, by comparison with the COSO framework.Theories of COSO internal control model stated three groups of the objectives, namely: 1) Effectiveness and efficiency of operations, 2) Reliability of financial reporting, and 3) Compliance with applicable laws and regulations. Achieving the three objectives there are five basic components of internal control system such as: Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring.The study was conducted with qualitative methods to verify the theory of proposition 1: If implementation of internal control as a whole, then the performance of agency ANATL will be very good, and proposition 2: Quality of internal control is getting better, the arising of risk could be reduced and fraud preventable.The results had shown that implementation of internal control as framework COSO order in the agency ANATL was very weak. Weakness almost among categories and components of internal control therefore not applied completely. The category of weakness was financing reporting and compliance with laws and regulations. While the components were very weak such as control environment, control activities and monitoring. The proposition 1 is answered: the implementation internal control in agency ANATL is not completed cause poor performance. Poor quality of internal controls or inadequate, then the proposition 2 answered: the poor quality of the internal control will be risk and fraud.

PERANAN PENGENDALIAN INTERNAL TERHADAP EFEKTIFITAS PENAGIHAN PIUTANG PADA UMKM SENTRA KAOS SURAPATI BANDUNG

The implementation of internal controls on receivables collection that is implemented effectively will affect the success of a company in implementing the policy of selling goods or services on credit. This study aims to determine how the role of internal control on the effectiveness of collection of accounts receivable at UMKM Sentra Kaos Surapati Bandung. The factors tested in this study are the internal control of accounts receivable as an independent variable and the effectiveness of collection of accounts as the dependent variable. The research method used in this research is descriptive qualitative

PERAN PENGAWAS DALAM MENERAPKAN PENGENDALIAN INTERN PEMBERIAN KREDIT PADA GABUNGAN KOPERASI PEGAWAI REPUBLIK INDONESIA JAWA TIMUR

Introduction: Implementation of internal control is one of theorganization's efforts must be made to improve the effectiveness of its operations. How to implement internal control is to implement an integrated framework published by COSO in 1992. Internal control not only on the organization, credit unions must implement internal control. This is because credit unions have an activity in the form of lending on credit to members. Lending on credit can lead to an unsuccessfuluncollectible receivables that have threats that can cause harm. Threatsinclude non-performing loans, human error and fraud. Internal controls will be run in accordance with the plan, if the controller cooperativesperform functions as an internal auditor to evaluate and provide recommendations on the implementation of internal controlimprovements that have been running on credit unions. Thus, the purpose of this study was to determine the role of the controller as afunction of the internal auditor in the application of internal control ofcredit on GKPRI JATIM.Methods: The method used is the method of participation observationto determine the application of internal control GKPRI JATIM. Furthermore, assessment of internal control so as to know GKPRI JATIMcontroller role as internal auditor function components based control framework published by COSO in 1992.Results: As a result, controllers should consider several things that madecooperative organizational structure, procedures and policies areimplemented cooperative lending, risk mapping and assessment of allcredit control activities undertaken management to be able to detectproblems that emerge early on.Conclusion and suggestion: Thus, internal control can be run effectively.

Evaluasi Sistem Pengendalian Intern atas Pengelolaan Piutang Pajak Daerah (Studi pada DPPKAD Kabupaten Kendal)

An Internal Control System must be performed by every government agency to provide reasonable assurance that the governance has been implemented as required by the State Financial Regulation. This study aimed to evaluate the Internal Control System implementation of the local tax receivables management in Kendal Regency and identify the weaknesses in its implementation. This research uses a qualitative descriptive method with a case-study strategy. Variables discussed in this research are the implementation of the Internal Control System on the activities of the local tax determination, local tax receivable collection, and local tax receivable reporting. The Internal Control System’s implementation of the local tax receivables management is evaluated by verifying its compliance with the implementation of an adequate Internal Control System based on Government Regulation No. 60, 2008.The implementation of tax receivable management’s internal control, overall is adequate enough, with an assessment results score of 60.53%. The assessment results on tax determination and tax receivables collection activities is still inadequate, where the score for both is 58.92%. On the activities of local tax receivable reporting , implementation of internal control is sufficient, with an assessment score of 63.76%. The lack of commitment on competence, inadequate of formal directions, the lack of human resources, and lack of socialization about the implementation of the Internal Control System are some of the weaknesses identified in this research.

THE RELATIONSHIP BETWEEN INTERNAL CONTROL, REGULATION AND FRAUD WITH RISK MANAGEMENT AS A MODERATING VARIABLE

Some Government agencies have a poor strategy in dealing with risk because they consider risk management only a formality. This research aims to determine the relationship of the implementation of internal control, regulation and fraud with risk management as a moderating variable, a case research in the Tangerang City Government. This research is a type of quantitative causal, data collection using a questionnaire to 100 respondents of government officer. Data analysis using SmartPLS. Seven research models partially support hypotheses which are statistically positive and significant effects of the relationship between internal control, regulation, risk management and fraud. except for H₅ and H₇ which are statistically negative and weak significant relationship. The result could be used by government as a study material to evaluate the regulation to managing risk in government.

PENGARUH PENERAPAN SISTEM ENTERPRISE RESOURCE PLANNING (ERP) DAN KUALITAS SISTEM INFORMASI AKUNTANSI TERHADAP EFEKTIVITAS PENGENDALIAN INTERNAL ATAS PELAPORAN KEUANGAN PADA PT WASKITA KARYA TBK (STUDI EMPIRIS UNIT KERJA YANG BERADA DI BAWAH KANTOR DIVISI I INFRASTRUKTUR)

This paper is intended to determine the application of Enterprise Resource Planning (ERP) applications and the quality of accounting information systems towards the implementation of internal control over financial reporting at PT. Waskita Tbk. The population in this study was PT Waskita Tbk employees who were under the Division I office in charge of the Sumatran region with a total population of 552 employees, with a sample used by 100 employees. Data analysis method in this study uses multiple regression analysis. The results showed that the simultaneous Corporate Resource Planning System and the quality of the accounting information system influence significant effect for the assistance of internal control over financial statements. While Enterprise System Resource Planning has a significant effect on internal control over financial reporting, accounting accounting information systems have a significant effect on controlling financial reporting. Researching to improve internal control over reporting, PT. Waskita Tbk. Continue to renew the use of information technology to be able to increase the use of internal control.

COSO-based internal control: efforts towards good university governance

<p class="IABSSS"><strong>Purpose</strong> - The purposes of this study are to determine the implementation of internal control, to determine the application of good university governance, and to determine the effect of internal control on good university governance.</p><p class="IABSSS"><strong>Method </strong>- The research design is a survey with a quantitative approach. The object of research is UIN Walisongo that has carried out an institutional transformation. The population in this study is all structural officials at UIN Walisongo with 184 people in total. From the distribution of questionnaires, 106 questionnaires were obtained. The analysis technique used is descriptive analysis and Structural Equation Modeling (SEM) analysis with the AMOS program.</p><p class="IABSSS"><strong>Result</strong> - The results showed that the application of internal control was carried out in the good category, the application of university governance was in the very good category, and internal control had a significant effect on good university governance.</p><p class="IABSSS"><strong>Implication</strong> - The result of the study provide further confirmation of internal control with good university governance. This study, carried out in one educational institutions, therefore more educational institutions are needed to be examined so that the result can be generalized.</p><strong>Originality</strong> - The research focuses on educational institutions that specialize in teaching, research and community service. Especially the dimensions of risk analysis are generally discussed in profit organizations.

Internal Control Systems Implementation and Fraud Mitigation Nexus among Deposit Taking Saccos in Kenya

Purpose: This paper analyses the relationship between the implementation of internal control and fraud mitigation among the savings and credit cooperatives societies (Saccos) in Kenya. 
 Methodology: To achieve the objective, specific variables were formulated based on the five components of internal control model. Particularly, the research focuses on the effect of control environment, control activities, monitoring, information and communication, and risk assessment, on fraud mitigation. Data was collected through the use of a structured questionnaire. Ordinary Least Square Regression approach was used for analysis. 
 Results: The data analysis found that all the mentioned variables significantly affect fraud mitigation among Saccos in Kenya. 
 Implications: The analysis highlighted that there is a need for Saccos to strive and implement internal control systems to a higher extent to cure the persistent problem of fraud that they grapple with. The analysis also recommends that Saccos should institute proper mechanisms to provide adequate checks during staff recruitment, install adequate security, provide regulation of valuable information access, they should also conduct regular monitoring of third party links with personnel as measures to mitigate fraud.

Internal Control and the Financial Performance of Selected Deposit Money Banks Listed in Nigeria

There is a general consensus that any organization without an Internal Control system in place is generally exposed to several threats that are capable of crumbling the organization in less or no time. Prominent amongst such threats are: Problem of incorrect financial statement and loss of the company’s assets; stealing and mismanagement of organizational vital documents which may be done by an employee to take undue advantage. This study investigated the impact of internal control on financial performance covering the period of 10 years (2009-2018).The study employed an ex-post facto research design which is based on secondary data obtained from the fifteen (15) selected deposit money banks listed in Nigeria stock exchange. Pooled regression analysis was used while an inference were drawn at 5% significant levelThe study findings showed that board independence is positive but insignificant to financial performance (β=0.021; P–value > 0.05). More so, on compliance with CBN regulatory framework have positive and significant influences on the financial performance (β = 0.051; P -value<0.05), Furthermore, risk management is negatively but insignificant influences the financial performance of listed Deposit Money Banks in Nigeria (β = -0.002; P–value < 0.10) while internal communication of information positively and significantly influences the financial performances of listed Deposit Money Banks in Nigeria (β = 0.820; P–value<0.05) The study concluded that there is insignificant effect of internal control on the financial performances of listed Deposit Money Banks in Nigeria. The study recommended that banks must have an independent Board of Directors and its committee as a Corporate Governance regulatory requirement. Besides this, an independent audit department that is well trained and staffed should be set in all the branches of the banks to facilitate effective implementation of internal controls. Keywords: Corporate governance, Deposit money banks, Financial performance, Internal control, Nigeria. DOI: 10.7176/DCS/10-4-07 Publication date: April 30 th 2020

Pengaruh Pengendalian Internal, Motivasi, Kompensasi Dan Kepemimpinan Terhadap Kinerja Pegawai

The purpose of this study was to determine the effect of internal control, motivation, compensation and leadership on employee performance at UPTD Cleanliness District Jatiasih Bekasi. For government organizations, the results of this study are expected to contribute to the implementation of internal control, motivation, compensation and leadership in order to improve the quality of UPTD Cleanliness services and achieve the expected organizational goals.Respondents used in this study were cleaning staff UPTD Cleanliness Jatiasih District Bekasi. Data were collected using interviews, questionnaires, and observations. Descriptive analysis method is used to test the hypothesis and structural modeling with the Partial Least Square application, the SmartPLS program version 3.The results showed that: (1) Internal Control had a significant positive effect on employee performance. (2) Motivation has a significant positive effect on employee performance. (3) compensation does not affect employee performance. (4) Leadership has a significant positive effect on employee performance.