Internal Accounting Control System Research Articles

Impact of human resource characteristics of internal accounting system on post-earnings announcement drift: Evidence from Korea

When companies invest in their internal accounting personnel, investors place greater trust in disclosed earnings information and highly regard a company’s information transparency. This results in prompt investment decisions regarding the company. Consequently, earnings information will be immediately reflected in stock prices, thereby reducing stock price drift. The purpose of this study is to examine the impact of investments in establishing and operating internal accounting systems on investors’ responses to the mitigation of stock price drift. The study focused on firms listed on the Korea Exchange from 2011 to 2018 and constructed a regression model using the cumulative abnormal return following earnings disclosure dates for 30, 60, and 120 days as the dependent variable, with the characteristics of internal accounting personnel as independent variables. The analysis reveals that companies with many internal accounting personnel and position experts, such as accountants, within their internal accounting control systems, experience a significantly lower stock price drift. The coefficients of the interaction terms between internal accounting personnel characteristics and standardized unexpected earnings are positive and significant at the 1% level for all cumulative abnormal return values. The findings of the study indicate that as efficiency is secured, stemming from the scale of personnel managing internal accounting control systems and their expertise, market investors’ understanding and trust of accounting information also increase. Investors, as information users, react promptly to the earnings information disclosed by the company, leading to a decrease in stock price drift. AcknowledgmentsThis work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2021S1A5A8070518).

EFFECT OF INTERNAL ACCOUNTING MONITORING AND CONTROL ACTIVITIES ON FINANCIAL PERFORMANCE OF SACCOS IN KENYA

<p>Internal accounting monitoring and control activities are important tools for enhancing the management of resources in any financial institution. That is monitoring and control activities enhance the prudent use of resources, and accountability and improve institutional efficiency. However, there are numerous cases of poor management, fraud and poor governance of Savings and Credit Cooperative Organizations (SACCOs) as reported by SACCO Societies Regulatory Authority (SASRA) despite the existence of internal accounting control systems required by SASRA. The study sought to examine the effect of monitoring and control activities on the financial performance of SACCOs in Kenya. The study employed a mixed research design targeting 175 SACCOs with 875 respondents. A purposive sampling technique was used. The participants were chosen based on the purpose, hence the chief executive officers, finance managers, risk managers, information communication technology managers and internal auditors. Data was collected by the use of both primary and secondary techniques. A pilot study was conducted to establish the validity and reliability of research instruments. Primary data collection was by use of questionnaires, while secondary data involved documentary analysis to capture information on financial performance. A pilot study was conducted in Nairobi County. Validity was achieved using content and construct validity, where monitoring and control activities yielded an average factor loading of 0.606 and financial performance yielded 0.838. Cronbach's Alpha was applied to establish reliability, which had a range between 0.896 for monitoring and control activities to 0.916 for financial performance. Data was analyzed by use of descriptive and inferential statistics. Descriptive analysis included; frequencies, mean, standard deviation and percentage while inferential analysis involved regression analysis. From the results, there was a significant positive relationship between monitoring and control activities and financial performance (r=0.656, P=0.000), monitoring and control activities explain 43.0% (R<sup>2</sup> =0.430) of variance in financial performance, the beta value for monitoring and control activities from the regression model was 0.526 at p< 0.05. The study concluded that monitoring and control activities have a significant positive effect on financial performance. This study recommends that SACCOs should constantly monitor their financial performance by implementing audit reviews as well as performance reviews to make sure that SACCO objectives are achieved accordingly.<em> </em><em></em></p><p><em> </em></p><p><strong>JEL: </strong>M40; M41; G20<strong></strong></p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/edu_01/0767/a.php" alt="Hit counter" /></p>

Construction of Accounting Internal Control Management Platform Based on IoT Cloud Computing

The Internet of Things is a network that interconnects all items on the Internet through radiofrequency identification, infrared sensors, global positioning systems, laser scanners, and other sensing equipment according to the agreed communication protocol to achieve intelligent identification, positioning, analysis, monitoring, and management. Internal accounting control is an accounting measure established for the enterprise to identify and analyze the operating conditions and to be responsible for the enterprise assets. Accounting internal control is the core of internal control, and the rational use of internal control theory is conducive to promoting the healthy development of enterprises. According to the control object, it can be divided into financial risk control, operational risk control, human resource risk control, strategic risk control, and information distortion control. This paper is aimed at studying the construction of an accounting internal control management platform based on the Internet of Things cloud computing. How the internal accounting control system adapts to the development of the socialist market economy is the current research focus. In view of the current development status of the control system, this paper combines the internal control with the accounting information system and explores the enterprise management from the strategic management level and the operational management level. This paper mainly builds an accounting big data analysis platform based on cloud computing and believes that the platform should have the function of financial comprehensive analysis. The experiment in this paper found that the actual management cost of the company in 2017 was 2630 million yuan, and the predicted management cost was 2600 million yuan. The gap between the predicted data and the actual data is getting closer and closer, indicating that the prediction platform is effective.

상장중소기업의 강화된 내부회계관리제도 모범규준 적용이 자기자본비용에 미치는 영향

Listed small and medium-sized companies (SMEs), when applying the standards (Standards) for internal accounting control system (IACS), can apply a relaxed Standards unlike large listed companies. This study analyzes the effect of SMEs’ applying the Standards applied to large companies (applying of reinforced Standards) on the cost of equity capital (COE). In addition, this study examines whether the differential role of external corporate governance appears in the relationship between the two.<BR>Empirical results show a negative relationship between the applying of reinforced Standards of SMEs and the COE. This suggests that reinforced application of SMEs’ increases the reliability of the accounting information process and ultimately is related to the reduction of information risk. Specifically, the result is found firms without industry specialized auditors, firms without institutional shareholders and firms with low foreign investor equity, suggesting the application of reinforced Standards is more effectively related to information risk reduction when external corporate governance is weak.<BR>This study has a differentiated contribution by presenting empirical results that SME’s selection of the Standards affects the COE. In particular, the results of this study that proactive design and operation of IACS are related to the reduction of cost of capital.

Effect of internal accounting control system on the value of cash holdings

ABSTRACT This study investigates the relationship between the adequacy of internal control personnel and the value of cash holdings. The internal control personnel of firms have a responsibility to ensure the reliability of financial statements, prevent corruption, and protect assets, including cash. Investors value cash based on its use by the company. The value of cash holdings declines when managers use cash to maximize private utility, while it increases when cash is used to create corporate value. The internal control personnel contribute towards increasing the value of cash holdings. The results show that an inadequate number of internal control personnel negatively impacts the value of cash holdings. However, investors ignore the expertise of such personnel when evaluating the value of cash holdings. These findings suggest an increase in firms’ understanding of the significance of human resource investment in terms of internal control and its impact on investors’ decisions.

The Impact of Governance Structure on the Relationship between Report Types of Weakness in Internal Accounting Control System and Executive Compensation

The Impact of Governance Structure on the Relationship between Report Types of Weakness in Internal Accounting Control System and Executive Compensation

The association between human resource investments in the internal accounting control system and non-audit fees: evidence from South Korea

The association between human resource investments in the internal accounting control system and non-audit fees: evidence from South Korea

내부회계관리제도 담당 인력의 특성과 이익지속성

본 연구는 내부회계관리제도 담당 인력의 특성과 이익지속성 간의 관련성을 알아보았다. 내부회계관리제도 담당 인력은 재무제표의 신뢰성 확보, 자산 보호, 부정행위 방지 등의 역할을 한다. 내부회계관리제도를 담당하는 인력의 규모가 적정하고 전문성을 갖출수록 오류나 부정 행위를 적발하고 방지할 가능성이 높아 회계투명성 및 이익지속성이 높을 것으로 예상된다. 2014년부터 2018년까지 유가증권 상장 기업 중 비금융업을 대상으로 검증하였으며, Sloan (1996)이 사용한 당기순이익과 전기 당기순이익의 1차 자기상관관계를 이용하여 이익지속성을 측정하였다. 실증 분석 결과, 내부회계관리부서의 인력이 적정하게 구성될수록 이익지속성이 높고, 이러한 관계는 현금흐름 및 발생액 모두에서 기인하며, 특히 발생액의 지속성은 비재량적발생액에서 기인하였다. 내부회계관리 담당 인력이 전문적일수록, 즉 공인회계사를 보유하거나 회계 및 자금 부서 담당 인력의 경력이 높을수록 이익지속성뿐만 아니라 현금흐름 및 발생액의 지속성도 높았다. 또한, 이 경우 발생액의 지속성은 비재량적발생액과 재량적발생액 모두에서 기인하였다. 본 연구는 내부회계제도 담당 인력의 업무인 회계투명성 확보와 이익지속성 간의 관련성을 알아봄으로써, 외부 투자자들에게 내부회계관리제도 인력 투자의 효과성에 대한 정보를 제공해 기업 가치를 평가할 수 있는 참조 자료로 활용될 수 있다. 또한, 금융 당국이 관련 제도 개선 및 신규 제도 마련 시 내부회계관리제도의 실효성에 대한 근거자료로 활용될 수 있으며, 기업들에게 내부회계관리제도 인력 투자에 대한 인식을 제고시킬 수 있다.

내부회계관리제도 인적자원에 대한 투자와 불성실공시지정 간의 관련성에 대한 연구

내부회계관리제도 인적자원에 대한 투자와 불성실공시지정 간의 관련성에 대한 연구

The Association between Human Resource Investments in the Internal Accounting Control System and Non-audit Fees: Evidence from South Korea

This study empirically examines the relationship between human resource investments in the internal accounting control system (IACS) and firms' non-audit fees. By using hand-collected data on the IACS for firms listed on the Korea Composite Stock Price Index (KOSPI) and Korea Securities Dealers Automated Quotations (KOSDAQ) markets, we find that human resource investments in the IACS are positively associated with firms' nonaudit service fees. Specifically, the findings show that the number of employees working in the IACS positively relates to firms' non-audit fees from the KOSPI and KOSDAQ sample. Our results indicate that this positive association is more prominent for large-sized than small-sized firms and KOSPI than KOSDAQ firms.

The Effect of the Quality of Internal Accounting Control System on Executive Compensation : Focusing on the moderating effects of corporate governance

The Effect of the Quality of Internal Accounting Control System on Executive Compensation : Focusing on the moderating effects of corporate governance

Comparisons of Data Mining Models to Predict Enterprises with Internal Accounting Control System Weaknesses

Comparisons of Data Mining Models to Predict Enterprises with Internal Accounting Control System Weaknesses

내부회계관리제도 중요한 취약점 공시 이후 발생액 질의 변화

내부회계관리제도 중요한 취약점 공시 이후 발생액 질의 변화

A Study on the Effects of Human Resource in KEJI Internal Accounting Control System on Audit Times

A Study on the Effects of Human Resource in KEJI Internal Accounting Control System on Audit Times

한국 내부회계관리제도 역사에 관한 연구

2013년부터 2016년동안 대우조선해양 등 우리나라의 유명한 기업들의 분식회계 및 부실감사 회계부정사건으로 2017년 “주식회사 등의 외부감사에 관한 법률”이 전면개정되었다. 이 법은 2018년 11월 1일자로 시행되었다. 분식회계로 인한 재무정보의 왜곡은 전 세계적인 금융위기를 가져왔다. 특별히 우리나라는 2008년 금융위기 이후 내부회계관리제도를 엄격히 시행하려 금융법과 상법 개정을 하고 준법지원인 제도를 도입하였다. 그러나 우리나라는 오래전부터 내부회계관리제도를 실시하고 있었다.BR 실존하는 서류를 근거로 벌써 신라시대부터 내부회계관리제도를 시행하고 있었다. 고려와 조선을 이어오면서 정착되고 발전되었지만 일제강점기를 통하여 고유의 내부회계관리제도가 사라져 버렸다. 이 논문은 우리나라 회계관리제도의 역사를 연구하는데 목적이 있다.BR 전통 내부회계관리제도의 정신은 앞으로 계승 발전되어야 한다.BR 7-8세기 신라촌락문서(新羅村落文書)를 볼 때 국가자산에 대한 회계관리를 하고 있었으며, 서양보다 빠른 복식부기인 고려의 사개송도치부법(四介松都治簿法)은 고려시대에 만들어져 고려와 조선의 상인은 물론 개항기에 설립된 신식은행인 대한천일은행(大韓天一銀行)의 내부회계관리제도의 방법이었다.BR 사개송도치부법(四介松都治簿法)으로 작성된 총계정원장인 일기장과 분개장에는 재무상태표와 손익계산서가 제공하는 모든 정보를 가지고 있다.BR 조선 태종때에 실시된 전곡을 출납하는 과정에서 좌 · 우 대조가 정확하게 맞는지 점검하는 감합법(勘合法)을 통한 성실성과 신뢰성을 갖춘 회계관리가 행하여졌다. 국가 재정의 세출예산표인 횡간(橫看)과 공안(貢案)을 통하여 공물의 내부통제를 하였다. 해유(解由)제도는 왕과 관리 사이에 대리관계를 통한 회계책임을 가지며 임기가 끝날 때 회계감사를 통한 정리를 하였다. 중기(重記)제도는 관청에 항상 비치되어 여러 물건의 종류대로 수납, 지급등의 변동상황과 현존상태를 관리하였다. 중기(重記)제도를 통해 사헌부 감찰의 감사와 호조의 확인과 감사를 받아야 녹봉을 받을 수 있다. 용하기(用下記)는 영암마을의 계조직의 재정상태를 기록한 장부로서 회계처리의 규정인 계헌을 만들고 사개송도치부법의 방식으로 기록되어 보존되어 회계관리를 하였다. 조선시대 사립대학격인 서원(書院)에서도 회계문서를 통하여 내부통제가 일어났다. 이러한 역사적인 내부회계관리제도의 연구를 통하여 그 정신과 내용을 계승 발전하여야 한다. 이러한 전통을 계승하여 기업의 내부회계관리제도를 더욱 정교히 하여 건전한 기업정신과 문화를 발전시켜야 한다.

Control interno en los costos de fabricación de los productos lácteos en la Cooperativa de Producción Agropecuaria “Chone Ltda”

&lt;p style="text-align: justify;"&gt;This research work consists of carrying out an analysis of the accounting processes that are executed in the Cooperative of Agricultural Production of Chone Ltda, through the application of the internal control system and thus be able to identify which are the strengths and weaknesses of the company. The same will allow to know what are the errors that should improve and change, so that this entity is a leader in the market in the processing of dairy products. In order to achieve better control, it was necessary to elaborate a procedure manual for the internal accounting control system, obtaining transparent information that helps decision-making preventing future risk.&lt;/p&gt;&#x0D; &lt;p style="text-align: justify;"&gt;In order to achieve the stated objective, the analysis methods were used, and the techniques as a support tool for interviews and surveys, which are aimed at the manager and the employees of the company. The present work is structured in three chapters detailing each process; in the first CHAPTER, it is the fundamental part where the theoretical framework is described investigating a scientific study focused on the theories (content, importance, characteristic, objectives, elements, among others), which complements the work of the research, fulfilling the objectives proposed.&lt;/p&gt;&#x0D; &lt;p style="text-align: justify;"&gt;In the second CHAPTER where the study carried out in the research field is described, tabulating data by means of statistical graphs on the current situation of the Cooperativa Agropecuaria de Chone Ltda. Applying the basic techniques such as the interview and survey to verify the hypothesis presented in the present work.&lt;/p&gt;&#x0D; &lt;p style="text-align: justify;"&gt;In the third CHAPTER proceeds to develop the manual of procedures to the internal accounting control system as a proposal for the Agricultural Cooperative which will improve internal processes in the development of daily activities in the development of a product.&lt;/p&gt;&#x0D; &lt;p&gt; &lt;/p&gt;

The Effect of the Quality of Internal Accounting Control System on Executive Compensation

The Effect of the Quality of Internal Accounting Control System on Executive Compensation

A Study on the Relation of Characteristics of Human Resources in Internal Accounting Control System on Audit Fees and Audit Times

A Study on the Relation of Characteristics of Human Resources in Internal Accounting Control System on Audit Fees and Audit Times

Research on Enterprise Internal Accounting Control Objective Structure and Its Stratification Setting

This article holds that the basic theory of constructing the internal accounting control objectives of the enterprise is that the relationship between the property rights of enterprises under the modern enterprise system, the structure of management power and responsibility arrangement in the governance structure and the diversity of the requirements of the enterprise's economic management. On the basis of determining the basic objectives of internal accounting control in the enterprise, the specific objectives of the internal accounting control should be divided and designed according to the level of corporate governance structure and the content level of the internal accounting control objectives of the enterprise, so as to facilitate the implementation and implementation of the requirements of the internal accounting control system.

Management of accounting information resources security in Polish entities – study results

The presence of contemporary entities in the cyber-space shows that IT offers unlimited possibilities of running a business and developing an organisation. On the other hand, it involves a greater number of internal and external threats in the area of accounting information resources security. The objective of the paper is to diagnose the current level of accounting information resources security (AIRS) assurance in Polish business entities. The paper analyses two research hypotheses. In accordance with the first one, the AIRS assurance level in various entity groups may be different, even though all entities should have implemented the same requirements of the Accounting Act in the analyzed area. The identified differences may result from the effect of additional, industry-specific regulations. The other hypothesis claims that in the private business area, accounting and auditing companies adhere to AIRS regulations more strictly than other small and medium enterprises. The paper defines the fundamental factors affecting the functioning of corporate accounting systems in the three dimensions of the cyber-space. Subsequently, the author presents the results of empirical research on how corporate information security is ensured in the context of internal accounting control systems and the requirements of the Polish Accounting Act. The results of the empirical research show how the management of the analysed entities crafts the basic elements of their internal environment as well as internal communication and control processes connected with ensuring information resources security. The results also show the management’s approach to various aspects of risk management of accounting information resources security, as well as to adherence to organisational and administrative procedures, and to hardware and software safeguards in the IT environment of the accounting system. The issues analysed in the present paper open a scholarly discussion that should lead to the development of theoretical models, recommendation of efficient methods and tools, as well as indication of adequate legislative initiatives. Research methods used by the author include analysis of literature and legislation, analysis of survey results, deduction and inference.