Internal Accounting Research Articles

“Felt responsibility”: a mediator for balancing NGOs’ upward and downward accountability

PurposeThis study aims to investigate how non-government organisation (NGO) managers balance accountability to donors and beneficiaries and the role of felt responsibility in this process.Design/methodology/approachUsing concepts of accountability theory, practices of microenterprise development NGOs are examined in two countries – Bangladesh and Indonesia – through interviews with managers of 20 NGOs and analysis of NGOs’ publicly available data.FindingsFindings show a shift in emphasis from a vertical view (upward to donors and downward to beneficiaries) to a horizontal view of NGO accountability. Under this view, a selective approach to donors whose mission and approaches to poverty alleviation aligned with those of the NGOs played an essential role in supporting NGOs’ internal accountability. Further, felt a responsibility to beneficiaries is identified as an important mediator balancing both upward and downward accountability. While accountability to donors and beneficiaries was interrelated, accountability to donors was considered a short-term objective and accountability to beneficiaries was considered a long-term and overriding objective.Originality/valueFindings contribute a further understanding of the role of felt responsibility to beneficiaries as a mediator for balancing upward and downward accountability based on the perspectives of NGO managers. Reframing accountability through a horizontal view helps to balance multiple directions of NGO accountability: to self, donors and beneficiaries.

Valuing supply chain performance within and across manufacturing industries: A DEA-based approach

Managers often use financial metrics based on internal accounting data to gauge firm performance. In this paper, we analyze firm value and related levers of operational supply chain (SC) performance from a financial market perspective. This allows us to study the contributions of profitability (earns) and asset utilization (turns) as the two major drivers of firm value. For this purpose, we apply data envelopment analysis to a large-scale longitudinal dataset of listed US companies (2007–2015) that covers 13 manufacturing industries. In so doing, we shed light on the implications of the 2008/2009 financial crisis for operational SC performance. Our findings can be summarized as follows: First, earns and turns are negatively correlated from an internal accounting-based viewpoint that distinguishes ‘high earns/low turns’ from ‘low earns/high turns’ industries. Second, manufacturing companies mostly tend to be less efficient in translating earns as opposed to turns into firm value. Finally, we observe declining efficacy of approaches to value-based supply chain management in manufacturing industries since 2007 (the last year before the financial crisis). General firm value appreciation in the stock markets overcompensated for this decline until 2015.

Accountability: Efforts to Prevent Rush Money at Village Credit Institutions in Buleleng Regency

Ensuring the confidence of customers and other stakeholders, LPD requires an internal control system, presentation of financial statements and accountability. The purpose of this research is to know the implications of the internal control system and the presentation of financial statements to accountability. This study used quantitative method, population of 149 LPD that is still operating and selected 60 lpd samples in Buleleng Regency. Questionnaire as an instrument to collect research data. The analysis technique used is SEM (Structural Equation Modeling) with PLS (Partial Least Square) method. Based on the first hypothesis it appears that the relationship between internal control system variables and accountability of parameter coefficients 0.364 with a statistical t value of 4.056 greater than the table t value of 1,960 (4,056>1,960). Similarly, the second hypothetical relationship between the presentation of financial statements has a parameter coefficient value of 0.525 with a statistical t value of 6.362 greater than the table t of 1,960 (6,362>1,960). Based on the results of the study, it can be concluded that the internal control system is positively related to accountability, and the presentation of financial statements relates positively to accountability.

Faktor-Faktor Yang Mempengaruhi Akuntabilitas Pengelolaan Dana Desa (Studi Kasus Desa Di Kecamatan Simeulue Barat)

This study aims to analyze the influence of leadership, transparency, use of information technology and internal control systems on the accountability of village village fund management in villages in West Simeulue District. The problem that arises is whether leadership, transparency in the use of information technology and internal control systems affect the accountability of village fund management in West Simeulue District? With a sample of 70 respondents and data obtained by distributing questionnaires to respondents. To test each item on each variable has been tested the validity and reliability of the instrument. The results show that simultaneously there is an influence between leadership, transparency, use of information technology, internal control systems and accountability of village fund management by 0.678 or 67.8% and 0.322 or 32.2% influenced by other variables. after the F test, the number Fcount > Ftable or (34,293>3.13) and a significant test that the p value of 0.000 <p is set at 0.05 which means it is significant. Partially shows that: 1. Leadership affects the accountability of village fund management Tcount 2.392> T table 1.667 and p value 0.020 < from p 0.05 means significant. 2. Transparency affects the accountability of village fund management Tcount 2,231 > Ttable 1,667 with p value 0.029 from <0.05 means significant. 3. The use of information technology affects the accountability of village fund management Tcount 1.953> Ttable 1.667 with p value 0.030 from <0.05 means significant. 4. The internal control system affects the accountability of village fund management Tcount 4.511> Ttable 1.667 with p value 0.000 from <0.05 means significant. This means that partially the influence of the internal control system on the accountability of village fund management is more dominant than leadership, transparency and the use of information technology.

Corruption Criminal Prevention Strategy Financial Management Of Village Funds Through TP4D In Semarang District

Based on Presidential Instruction Number 7 of 2015, the Indonesian Prosecutor's Office deems it necessary to provide assistance to relevant government officials in terms of development acceleration and strategic national development programs. In addition, the Indonesian Attorney General's Office as a law enforcement agency has a role in supporting the success of national government and regional governance and development through escort and security, both in planning, implementing and utilizing development outcomes, including efforts to prevent state irregularities and losses. The establishment of TP4D in Semarang Regency, as an effort to be able to prevent the occurrence of Corruption Crime (Tipikor), mainly related to Village Fund Financial Management (APB Desa). In the effort to prevent Tipikor in managing APBDesa often faced with internal problems of the Village Government, among others: low levels of devotion, low ethics and integrity, egoistic behavior, low professionalism. While those related to external problems, among others: the first factor of the government administration system, in the form of: regulations that are still overlapping, sectoral and institutional selfishness, limited internal supervision, development of HR management is still limited. The second is related to cultural factors, among others: the existence of a culture of "tired money / facilitation money" as an additional income for the apparatus, an attitude of reluctance, and a shift in social and economic values. The strategy that has been carried out by the Semarang District Government and the Village Government in suppressing the occurrence of corruption in APBDesa management, namely, among others: strengthening the Government Internal Supervisory Apparatus (APIP) institutions, monitoring planning, implementation and accountability, conducting APBDesa information disclosure, and increasing HR Village Apparatus

Matrix Normalization Techniques for Definitive Urine Drug Testing.

Analytical performance of stable isotope-labeled internal standardization (SIL-IS) and threshold accurate calibration (TAC) methods of matrix normalization are compared for quantitation of 51 drugs and metabolites (analytes) in urine with analysis by ultra performance liquid chromatography with tandem mass spectrometry (UPLC-MS-MS). Two SIL-IS methods of analysis were performed, one method using analyte-specific internal standardization (ASIL-IS) and another method using a shared stable isotope from another analyte for internal standardization (SSIL-IS). Variance in inter-specimen matrix effect, without the use of a matrix normalization method, was studied by UPLC-MS-MS analysis of 338 urine donor samples and showed >200% variation in ion response for some analytes. Matrix normalization methods were evaluated for precision, accuracy, calibration, multi-matrix recovery and positive casework quantitation. Acceptable calibration and quality control criteria were achieved for all methods when calibrators and controls were prepared from the same urine matrix pool. Quantitative accuracy, determined by the addition of analytes to multi-donor urine pools at two concentration levels, resulted in acceptable percent relative standard deviation (%RSD) and bias for TAC and ASIL-IS methods. SSIL-IS method quantitations in analyte-supplemented donor pools revealed a %RSD ranging from 20% to 60% for >30% of the analytes and a method bias that ranged up to 87%, with a differential matrix effect on analyte and shared internal standard accounting for the imprecision and bias. Analyte quantitation in 162 authentic case samples showed close agreement for TAC and ASIL-IS methods, with greater variance in the SSIL-IS method. The study demonstrates effective matrix normalization by ASIL-IS and TAC methods and a matrix-caused bias in the SSIL-IS method.

Investment in Human Capital and External Reporting Quality

Ensuring that firms devote sufficient resources to the reporting process is important for quality reporting. To explore the effects of resources invested in the reporting function, we use a regulatory intervention in South Korea that led to an increase in human capital invested in the reporting process. The new regulation required firms to file internally prepared, pre-audited financial statements before the start of the year-end field audit process. Using the staggered adoption of this regulation, we confirm that the regulation leads to an increase in internal accounting employees at firms, and that the increase in rank-and-file accounting employees is more pronounced than the increase in top executives. Using difference-in-differences tests, we find improvement in external reporting quality (i.e., fewer restatements) for treatment firms relative to similar-size control firms that were not subject to the regulation. The effects are greater when an increase in accounting employees is accompanied by an increase in external audit effort, measured using audit hours. Treatment firms also show a drop in their hiring of non-accounting employees suggesting reallocation of labor inside the firm. The findings suggest that regulatory efforts to increase investment in internal accounting employees lead to improved reporting quality but can reduce labor forces in other non-accounting functions.

Telework operationalization through internal CSR, governmentality and accountability during the Covid-19: evidence from a developing country

PurposeThis study aims to examine the impact of Covid-19 on transforming accountability, corporate social responsibility (CSR) and office operation and control. This paper explains how unleashing the rationality of health and safety along with internal CSR made the transformation to telework successfully operable in a periphery of a western multinational corporation.Design/methodology/approachThe study draws upon the theories of governmentality and social accountability. It adopts an interpretative qualitative research approach and uses the case study method. Data were collected from one of the biggest private sector telecommunication companies in Egypt.FindingsThis study finds that Covid-19 and its related health and safety discourse represented a good rationale for the western home office to accelerate the initiation of its office transformation plan to reach full working from home policy in a less developed country peripheral subsidiary. Under the guise of CSR, the company spent a large budget to make this transformation quickly operable, while its Egyptian subsidiary is financially distressed. Moreover, the company achieved its objectives from this new rationality as employees currently prefer the telework mode which reduces the company costs in the long run.Practical implicationsThe study provides practitioners with evidence and practicable knowledge regarding the impact of Covid-19 on office reconfiguration and the ways used to achieve this in the Egyptian telecommunication sector.Originality/valueThe current study extends the governmentality literature by illustrating that transformation to telework in emerging markets is an operational manifestation of cost reduction and efficiency rationality under the guise of CSR. Moreover, it extends the office transformation literature by bringing early evidence regarding office transition plans during COVID-19 in an emerging market.

A Study of the Structural changes in the accounting environment as an introduction to the Practice of creative accounting

This study aims to address the structural changes in the internal and external accounting environment and its role in creative accounting practices. The study problem has been represented in the structural changes of the accounting environmental factors that control the behavior and the profession ethics. The anomaly it causes is exploited as an entry point for creative accounting practices. The study has found a relationship between the structural changes in the accounting environment and the creative accounting practices. Chi square statistic reported is28.27 with 28 digress of freedom accompanied by a probability of 0.55 which means a relationship is available. The study recommends the necessity of becoming accustomed to the changes in the accounting environment so as not to affect negatively the accounting practices. In addition, attention has to be paid to the awareness of the risks of creative accounting practices and the commitment to the acknowledged accounting practices.

Non-cognitive skills of employees and their influence on voluntary turnover

The paper examines the influence of non-cognitive skills of employees on the voluntary turnover during their first year at an organization. In contrast to the variables describing job satisfaction and commitment to the organization, the use of personal traits as determinants behind the decision to change companies is poorly studied in the literature. The article aims to identify indicators pointing to the tendency of an employee to voluntarily change the company. The theoretical basis of the study embraces James Heckman’s concept of non-cognitive skills and the conceptual provisions of personality psychology. In the paper, the method of economic modelling was used. The information base includes the results of the empirical assessment of 243 applicants for employment in JSC “Sheremetyevo International Airport” in 2019 and data on their dismissal during the first year of work. The database was supplemented with information on the company’s internal accounting and Rosstat statistics. The use of the probit model of binary choice allowed us to establish that, along with the relative salary and the specificity of employees’ expertise, their intention to quit is affected by non-cognitive skills such as capability to assess their own performance, the locus of control and the type of thinking. A rational way to deal with crises and a high level of self-perception of the effectiveness and significance of work reduce the probability of voluntary turnover before the first year. In addition, a high position and good salary strengthen an employee’s intention to stay in the company. Based on the research results, the paper offers recommendations to HR managers to retain highly qualified employees.

The Moderating Role Of Change Management And Leadership Turnover: A Study Of Performance Accountability In Local Goverment

The purpose of this study is to provide empirical evidence of the effect of the goverment internal control system and transparency on performance accountability by considering change management and leadership turnover as the moderating variable. This study was conducted on Local Goverment Organization (OPD) of Muara Enim Regency. The unit of analysis is 118 employees whose work are involved in the preparation of performance accountability. This study using Structural Equation Modelling (SEM) statistical techniques with SmartPLS 3. This study finds that goverment internal control system and transparency has positive influence on performance accountability. Furthermore showed that change management doesn’t moderated the relationship between goverment internal control system and transparency on performance accountability. Leadership turnover successfully moderated the relationship between goverment internal control system and performance accountability. However leadership turnover doesn’t moderated the relationship between transparency and performance accountability. The results of this study can be used as evaluation material for the local government of Muara Enim Regency in the implementation of internal control system and transparency to achieve accountability of government performance. In addition, by looking at the factors of change management and change of leadership can provide benefits to local governments in carrying out tasks and obligations.

System technologies for the formation of a data control contour for the personal account of an applicant based on the 1C:Enterprise 8.3 platform

The article considers the actual information technologies of the organization of a component distributed system for the distance enrollment of applicants within the framework of the 1C:Enterprise 8.3 platform. The concept of a modified component architecture of interaction with a web contour is proposed, which implementing the module of dynamic designing of web contour interface, as well as the automated functionality of data management directly on the standard 1C software products. The system principles for the organization of the contour of the website “Personal account of an applicant” have been formulated, they allow to integrate the management of the web contour into the circulation software solutions both for higher education (1C:University PROF) and for secondary vocational education (1C:College PROF) in terms of mechanisms for the dynamic designing of interfaces and the contour of data processing of site users. The implemented contour of designing site interfaces allows you to dynamically change the components of the site’s web forms, as well as to define the details displayed in the web user interface. A description of the mechanisms of dynamic interaction of the interfaces of the “Personal account of an applicant” site with the dynamic data management contour within the framework of the 1C:Enterprise 8.3 platform is given. The information components of the interaction contour of the site interfaces have been determined. The elements of the site control contour and their purpose have been specified. A conceptual universal scheme for the development of a web based data moderating contour has been formulated, and technologies for interaction with an internal accounting system for automating an admission campaign have been determined.

Influence of Internal Control Systems and Accounting Information Systems on Good Corporate Governance

This study aims to determine how the influence of internal control systems and accounting information systems on good corporate governance at Perum Bulog (Logistics Business Entity) in Bandung City. The factors tested in this study are the internal control system and the accounting information system as independent variables. Meanwhile, good corporate governance is the dependent variable. The research method used in this research is the verification method. The study population was employees of Perum Bulog (Logistics Business Entity Public Company) in Bandung, totaling 4,151 employees. The sampling technique used was probability sampling with simple random sampling method using the Slovin formula, so that there were 97 employees of Perum Bulog in Bandung City. The analytical method used is multiple linear regression analysis using SPSS Version 23.00. The results of the research partially and simultaneously show that the internal control system and accounting information system have an effect on good corporate governance at Bulog Corporation in Bandung City. In addition, the magnitude of the influence of the internal control system and accounting information system in contributing to good corporate governance is 77.2%.
 

Analysis of Internal Control of the Accounts Receivable System at Sekolah Tinggi Ilmu Administrasi Mandala Indonesia (STIAMI)

Accounts receivable is one of the great assets of current assets. Internal control is one way to anticipate the risk of fraud and to avoid negative that can arise due accounts. Internal control system has many elements that need to be designed, the system of separation of powers and separation of responsibilities - especially on the function and operation of the storage accounting functions in order to provide sufficient protection against the wealth, income and corporate accounts. This study was conducted to determine how the internal control of accounts receivable accounting system, what are the obstacles faced in internal control that is implemented and what is being done to minimize the barriers that exist in Sekolah Tinggi Ilmu Administrasi Mandala Indonesia (STIAMI). This study used the descriptive analytical method, which is to analyse and discuss the issues that will be described, explanation and illustration are arranged in a systematic, objective and relevant based on data collected as a basis for making decisions. Research conducted by the descriptive analytical method to determine the implementation of internal control and accounting system accounts. In order to get the information directly from the parties concerned, the researchers conducted in depth interviews with the Board of Management of STIAMI. Based on the results of the research, internal control of accounting systems applied by STIAMI receivables quite effective, it is characterized by the independence of the audit committee or internal watchdog unit which are directly under the auspices of the chairman STIAMI. In addition, management has also implemented STIAMI basic concepts and principles of internal control.

FAKTOR YANG MEMPENGARUHI RELIABILITAS LAPORAN KEUANGAN PEMERINTAH DAERAH

This study aims to examine and obtain empirical evidence about factors that affect the reliability of local government financial reporting. This research is motivated by the fact that the local government financial reporting should provide information on reliable in assessing accountability and decision making of various parties. Variables that will be tested in this study is the quality of human resources, utilization of information technology, accounting internal controls, and organizational commitment (as an independent variable) against the reliability of local government financial reporting (as the dependent variable).The data in this study is the primary data obtained from questionnaires distributed directly to the respondents. Data collected from 66 respondents who are local government financial reporting staff in the Rejang Lebong district. The hypothesis in this study were tested using t test and f test.The results of this study is test showed that the quality of human resources, the utilization of information technology, internal accounting controls, and organizational commitment significantly influence the reliability of local government financial reporting.

Data standardization implementation and applications within and among diagnostic laboratories: integrating and monitoring enteric coronaviruses.

Every day, thousands of samples from diverse populations of animals are submitted to veterinary diagnostic laboratories (VDLs) for testing. Each VDL has its own laboratory information management system (LIMS), with processes and procedures to capture submission information, perform laboratory tests, define the boundaries of test results (i.e., positive or negative), and report results, in addition to internal business and accounting applications. Enormous quantities of data are accumulated and stored within VDL LIMSs. There is a need for platforms that allow VDLs to exchange and share portions of laboratory data using standardized, reliable, and sustainable information technology processes. Here we report concepts and applications for standardization and aggregation of data from swine submissions to multiple VDLs to detect and monitor porcine enteric coronaviruses by RT-PCR. Oral fluids, feces, and fecal swabs were the specimens submitted most frequently for enteric coronavirus testing. Statistical algorithms were used successfully to scan and monitor the overall and state-specific percentage of positive submissions. Major findings revealed a consistently recurrent seasonal pattern, with the highest percentage of positive submissions detected during December-February for porcine epidemic diarrhea virus, porcine deltacoronavirus, and transmissible gastroenteritis virus (TGEV). After 2014, very few submissions tested positive for TGEV. Monitoring VDL data proactively has the potential to signal and alert stakeholders early of significant changes from expected detection. We demonstrate the importance of, and applications for, data organized and aggregated by using LOINC and SNOMED CTs, as well as the use of customized messaging to allow inter-VDL exchange of information.

Internal audit quality, punitive measures and accountability in Ugandan statutory corporations

PurposeThis study aims to (1) examine the contribution of internal audit quality, punitive measures to accountability in statutory corporations in developing countries such as Uganda and (2) test whether internal audit quality mediates the relationship between punitive measures and accountability in Uganda's statutory corporations.Design/methodology/approachThis study is cross-sectional and correlational. Data were collected through a questionnaire survey conducted for 82 statutory corporations. The study's unit of analysis was a statutory corporation. Chief Internal Auditors and Chief Finance Officers were the study's unit of inquiry. Data were analyzed through correlation coefficients and linear regression using Statistical Package for Social Sciences.FindingsThe results suggest that internal audit quality and punitive measures independently predict accountability. However, punitive measures do not predict accountability in the presence of internal audit quality. Results further indicate that internal audit quality mediates the relationship between punitive measures and accountability in Uganda's statutory corporations.Originality/valueThis study confirms internal audit quality (a preventive measure) as a significant predictor of accountability in statutory corporations relative to punitive measures. To achieve accountability, more emphasis thus needs to be put on preventive mechanisms than on punitive mechanisms. This study also enhances our understanding of the relationship between punitive measures, internal audit quality and accountability. In this study, we arrive at new evidence on the mediating role of internal audit quality in the relationship between punitive measures and accountability in Uganda's statutory corporations.

Predicting police officer reported compliance and willingness to cooperate with internal affairs units: application of the relational model of authority

ABSTRACT Internal accountability mechanisms, such as internal affair units, are an important aspect of misconduct and corruption prevention. Key to internal mechanisms is the fostering of compliant behaviour. Drawing on the Relational Model of Authority, this research investigated whether police officer perceptions of procedural justice and legitimacy, relevant to an internal affairs unit, influenced reported compliance and willingness to cooperate with the unit. An online survey was completed by 1195 police officers. Structural equation modelling revealed an indirect effect of perceived procedural justice on reported willingness to cooperate with the internal affairs unit via the subscales of legitimacy; perceived obligation to obey and perceived trust. The findings of this research provide important insight into theoretical understandings of compliance with authority in a policing context and will be of value to agencies seeking to improve compliance and cooperation with internal affair units.

Performance mechanisms meet professional autonomy: performance management and professional discretion within police investigation departments

ABSTRACT As with other parts of the public sector, policing has had to confront the principles and processes attached to new public management. This paper examines the impact of police performance management on the ‘occupational professionalism’ of British policing actors with a particular focus on organisational units concerned with criminal investigation. Based on qualitative empirical research on two major police forces in England and Wales, the paper arrives at three main conclusions. First, there appears to be a clear impact of police performance management, with its instruments of standardised operational procedures, performance monitoring and strengthened internal accountability, on the professional autonomy given to police actors. This takes the form of what others have seen as a shift from ‘occupational professionalism’ to ‘organisational professionalism’. Second, despite this overall trend, tensions and professional rivalries remain between police frontline officers, supervisors and middle managers around the perceived virtues and practices of performance management. In particular concerns are expressed at various levels over the dangers of ‘short-termism’ in police decision-making. Third, and building on this finding, varied modes of professional adaptation to the police performance regime have occurred in which some sectors, notably those involved with high profile serious criminal investigations, have worked to win professional space and exploit a hierarchy of prestige in order to actively interpret and shape agendas. We conclude that this situation is akin to the ‘managed professionalism’ found amongst many other public service professions.

Back to the Dark Side: Explaining the CIA’s Repeated Use of Torture

ABSTRACT Since the CIA’s inception, elements of the Agency have researched, used, and taught interrogation tactics for national security and counterterrorism purposes. These have sometimes constituted torture, cruel, inhuman, or degrading treatment, and ethical violations. Using the lens of Institutional Change Theory and investigating critical junctures in CIA history, this paper shows that a lack of meaningful internal and external oversight and accountability measures can explain the CIA’s recurrent use and propagation of torture and abuse in interrogation. These findings have implications for future counterterrorism interrogation policy, and preventing the use of ineffective, unethical techniques.