Internal Control Processes Research Articles

Sistem pengendalian intern pengeluaran kas pada Sekretariat Daerah Kabupaten Kepulauan Sangihe

The internal control system has an internal control structure that can control the internal control process including the control environment, accounting system, control procedures. This study aims to determine the internal control system, especially in cash disbursement activities at the Sangihe Regency Regional Secretariat which is based on the 5 (five) elements of the SPIP (government internal control system) including, control environment, risk assessment, control activities, information and communication and monitoring. The type of data used is qualitative data by conducting observations and direct interviews at the Regional Secretariat Office of the Sangihe Regency to the head of the financial subsection who knows thoroughly about cash disbursements. The results of the research obtained on the internal control system related to cash disbursements at the Regional Secretariat of the Sangihe Regency are in accordance with the 5 (five) elements of the Government Internal Control System(SPIP).

Observed effectiveness of the COSO 2013 framework

Purpose This paper aims to examine the effectiveness of the Committee of Sponsoring Organization’s 2013 Framework, by investigating how the number of auditor-reported material weaknesses compares for Early-, Timely- and Late-adopters of the framework, and how the number of auditor-reported material weaknesses changed for Early- and Timely-adopters following their adoption of the framework. Design/methodology/approach The paper uses regression analyses based on a sample of US firms subject to Sarbanes-Oxley Act Section 404(b). Findings Timely-adopters of the 2013 Framework continued to exhibit fewer instances of auditor-reported material weaknesses than Late-adopters, even though they had a marginal increase in the number of auditor-reported material weaknesses, in the post-2013 Framework period. Practical implications The findings suggest that the effectiveness of the 2013 Framework may lie in the iterative nature of the internal control process, and as firms remedy deficiencies they or their auditors identify, they will continuously improve the effectiveness of their internal control systems. Originality/value Unlike existing literature, this paper uses data from the pre-2013 Framework, transition and post-2013 Framework periods to examine changes in the number of auditor-reported material weaknesses, thus differentiating between Early-, Timely- and Late-adopters of the 2013 Framework. It also shows the effect of adopting the 2013 Framework on the number of auditor-reported material weaknesses.

Viability Quantitative PCR Utilizing Propidium Monoazide, Spheroplast Formation, and Campylobacter coli as a Bacterial Model.

A viability quantitative PCR (qPCR) utilizing propidium monoazide (PMA) is presented for rapid quantification of viable cells using the foodborne pathogen Campylobacter coli as a bacterial model. It includes optimized spheroplast formation via lysozyme and EDTA, induction of a mild osmotic shock for enhancing the selective penetration of PMA into dead cells, and exploitation of an internal sample process control (ISPC) involving cell inactivation to assess residual false-positive signals within each sample. Spheroplasting of bacteria in exponential phase did not permit PMA entrance into viable cells since a strong linear relationship was detected between simple qPCR and PMA-qPCR quantification, and no differences were observed regardless of whether spheroplasting was utilized. The PMA-qPCR signal suppression of dead cells was elevated using spheroplast formation. With regard to the ISPC, cell inactivation by hydrogen peroxide resulted in higher signal suppression during qPCR than heat inactivation did. Viability quantification of C. coli cells by optimized spheroplasting-PMA-qPCR with ISPC was successfully applied in an aging pure culture under aerobic conditions and artificially inoculated meat. The same method exhibited a high linear range of quantification (1.5 to 8.5 log10 viable cells ml-1), and results were highly correlated with culture-based enumeration. PMA-qPCR quantification of viable cells can be affected by their rigidity, age, culture media, and niches, but spheroplast formation along with osmotic shock and the use of a proper ISPC can address such variations. The developed methodology could detect cells in a viable-but-nonculturable state and might be utilized for the quantification of other Gram-negative bacteria.IMPORTANCE There is need for rapid and accurate methods to detect viable bacterial cells of foodborne pathogens. Conventional culture-based methods are time-consuming and unable to detect bacteria in a viable-but-nonculturable state. The high sensitivity and specificity of the quantitative PCR (qPCR) are negated by its inability to differentiate the DNAs from viable and dead cells. The combination of propidium monoazide (PMA), a DNA-intercalating dye, with qPCR assays is promising for detection of viable cells. Despite encouraging results, these assays still encounter various challenges, such as false-positive signals by dead cells and the lack of an internal control identifying these signals per sample. The significance of our research lies in enhancing the selective entrance of PMA into dead Campylobacter coli cells via spheroplasting and in developing an internal sample process control, thus delivering reliable results in pure cultures and meat samples, approaches that can be applicable to other Gram-negative pathogens.

IFRAMES DESIGN IN HEALTH SECTOR BLUD: ASSET AND INVENTORY SYSTEM

This research aims to design an information system to record assets and inventories at DKI Jakarta Regional Public Service Agency (BLUD). This study is based on the findings from Examination Report (LHP) issued by the Indonesian Supreme Audit Institution (BPK RI) which states that there are quite a few problems about assets at BLUD (BPK RI, 2017). This research is expected to answer research questions about how to design the system of assets and inventories needed by BLUD to assist the process of internal control and asset management. This study uses the Framework for the Application of Systems Thinking (FAST) as a method for systems development popularized by Whitten and Bentley (2007). This study uses a case study approach with the triangulation method, where the qualitative data as primary data by conducting interviews and observations. Unit of analysis in this study is the BLUD responsible for asset management. Currently, the existing asset information systems only record fixed assets and not connected to the financial reporting system. Assets and inventories information need to move manually by re-inputting the value to prepare financial statements. The result of this research is a design of asset information system to enhance internal control. Keywords: Assets, Information Systems, Internal Control Systems

IFRAMES DESIGN IN HEALTH SECTOR BLUD: ASSET AND INVENTORY SYSTEM

<p class="Default"><em>This research aims to design an information system to record assets and inventories at DKI Jakarta Regional Public Service Agency (BLUD). This study is based on the findings from Examination Report (LHP) issued by the Indonesian Supreme Audit Institution (BPK RI) which states that there are quite a few problems about assets at BLUD (BPK RI, 2017). This research is expected to answer research questions about how to design the system of assets and inventories needed by BLUD to assist the process of internal control and asset management. This study uses the Framework for the Application of Systems Thinking (FAST) as a method for systems development popularized by Whitten and Bentley (2007). This study uses a case study approach with the triangulation method, where the qualitative data as primary data by conducting interviews and observations. Unit of analysis in this study is the BLUD responsible for asset management. Currently, the existing asset information systems only record fixed assets and not connected to the financial reporting system. Assets and inventories information need to move manually by re-inputting the value to prepare financial statements. The result of this research is a design of asset information system to enhance internal control.</em><em></em></p><p class="Default"><strong><em>Keywords:</em></strong><em> </em><em>Assets, Information Systems, Internal Control Systems</em><em></em></p>

Improved quadruplex real-time PCR assay for the diagnosis of diphtheria.

Introduction. Diphtheria is caused by toxigenic strains of Corynebacterium diphtheriae, Corynebacterium ulcerans and Corynebacterium pseudotuberculosis. For diagnostic purposes, species identification and detection of toxigenic strains (diphtheria toxin (tox)-positive strains) is typically performed using end-point PCR. A faster quadruplex real-time PCR (qPCR) was recently developed (De Zoysa et al. J . Med . Microbiol. 2016;65(12):1521-1527).Aims. We aimed to improve the quadruplex method by adding a 16S rRNA gene target as an internal processing control, providing confirmation of the presence of bacterial DNA in the assays, thus avoiding the possibility of false-negative reporting.Methodology. Universal 16S rRNA gene primers and a probe were defined. The novel method was tested using 36 bacterial isolates and 17 clinical samples. Experimental robustness to temperature and reagent concentration variations was assessed.Results. The method allows detection of the tox gene and distinguishing C. diphtheriae (including the newly described species Corynebacterium belfantii) from C. ulcerans and C. pseudotuberculosis. Complete diagnostic specificity, sensitivity and experimental robustness were demonstrated. The lower limit of detection for C. diphtheriae, C. ulcerans and tox targets was 1.86 genome copies per 5 µl reaction volume. The method was successfully used on two distinct qPCR technologies (LightCycler 480, Roche Diagnostics and Rotor-Gene Q, Qiagen) and in two laboratories (Institut Pasteur, Paris, France and Public Health England - National Infection Service, London, UK).Conclusion. This work describes validation of the improved qPCR quadruplex method and supports its implementation for the biological diagnosis of diphtheria.

AMALAN AKHLAK KEPALA SEKOLAHDASAR ISLAM DI MALANG MELALUI MURAQABAH, MUHASABAH DAN MUJAHADAH

Muhasabah is a surveillance system involving the internal control process to ensure al- amr al-ma’ruf wa al-nahyu ‘an al-munkar implemented in Islamic education. The main purpose of this article is to examine the determinants of akhlak practices through elementary Islamic Education among Two Principal Schools. We’re collected data by non-participant observations, semi-structured interviews, documentation and principals’ journals. The results of this study showed that the practice of akhlak principals of Elementary Islamic School in Malang through muraqabah (behavioral observation), muhasabah (reflection practice) and Mujahadah (struggle of desires) contributed to the realization of the national education philosophy to produce a generation of school community who are righteous knowledgeable, competent, honorable and contribute to a universalcivilization.

The Role of Intellectual Capital Components on the Quality of Internal Control and Financial Restatements in Iran

In the present study, we examined the impact of firms' intellectual capital components on the quality of internal control and financial restatements in Iran. Data obtained from the audit reports and financial statements of 116 companies listed on the Tehran Stock Exchange over the period 2012 to 2016. The hypotheses testing results showed that none of the human, structural, and communicational capital coefficients have a significant relationship with the quality of internal control and financial restatements. Our findings could indicate that firms consider little value to human resources and its management during the examination period. Our study results do not deny the importance of human resources in implementing the internal control process. The study outcomes may benefit the impact of intellectual capital on internal control and restatement in developing countries.

Dynamics of deterioration in internal control reported under SOX 404

We examine why many firms disclose internal control weaknesses (ICW) under section 404 of Sarbanes-Oxley Act after previously reporting effective internal control (IC). We find that about half of the cross-sectional ICW determinant variables either do not change significantly from Year T-1 to Year T or change in a direction that is not expected to cause IC deterioration. The reported deterioration in IC can be attributed to increases in audit fee, management turnover, restatement, financial distress, firm size, and decrease in financial activities. Consistent with an agency hypothesis that managers try to manipulate the IC process when firm performance declines, the reported deterioration in IC is also associated with poor stock returns in the year before disclosure. ICW disclosure is more likely when poor stock return is combined with higher sensitivity of executive compensation to stock price change.

Rapid modelling for flexible DC distribution network considering droop control

With the growth of DC electricity load, the difficulty to improve the power quality, and the increasing penetration of renewable power, flexible DC distribution network, which contains complex renewable energy generation equipment and a large number of power electronic converters, become an important research direction. The modelling of the DC distribution network is an essential step for the research on the coordination control. However, the traditional modelling will be a burden for simulation software. This article models all electrical devices as equivalent power sources based on the proportional–integral control and the power–voltage curve, ignoring the complex internal control processes. Based on the simplified models of power, load, DC/DC converters, and AC/DC converters considering droop control, a simplified model of a multi-terminal flexible DC distribution network is derived. Taking the impact of droop control into account, the simulation of DC distribution power flow under the different distribution of generation and load is done. Results show that the simplified model of DC distribution network with droop control can accurately and rapidly simulate the transient process and steady states of the testing network.

A Review of Domestic Internal Control Literature in Recent Years

With the increasingly complex business environment, the construction of a scientific and effective internal control system has become an increasingly urgent requirement for enterprises. This paper demonstrates the research trends of domestic internal control topics in recent years through a brief exposition of the development process of internal control of enterprises and the combing of relevant internal control research literatures in recent years, so that readers can research the internal control of China in recent years. This paper can give readers a more comprehensive understanding about internal control.

IMPLEMENTATION OF ACCOUNTING PROCESSES AS AN ALTERNATIVE METHOD FOR ORGANIZING ACCOUNTING

This article explores the possibilities and prospects for the introduction of accounting processes in order to improve the organization of accounting in the enterprise. The theoretical content of the process approach to management is investigated and the definition of the concept “accounting process” in the context of business and non-business entities is proposed.Modern complex conditions of socio-economic development require dynamic changes in the methodology and organization of accounting. The improvement of information technologies and their implementation in the process of accounting and analysis has set the task of developing cross-cutting business processes that will include accounting and analytical processes. The article substantiates the possibility of distinguishing the accounting process as an independent business process, since it has all the characteristics of the process (initial data, results, resources), as well as the result of the introduction of the accounting and analytical process, the final product is formed - financial reports.Taking into account the peculiarities of the economic and organizational activities of legal entities, it is proposed to apply the following terminology of the definition “accounting process”: a business accounting process for an enterprise, since an economic benefit must be obtained to evaluate its application; the accounting process, for a non-profit entity, since the assessment of its use will be mainly a socio-economic effect. It is safe to say that accounting has moved from simple accounting and analytical information support to accounting management of enterprise economic processes, becoming one of the main types of management. The subject of accounting in a balanced development is the management and control of internal and external processes, and in the course of organizing accounting, engineering tools are used.In addition, the article substantiates the composition of indicators for assessing the effectiveness and efficiency of accounting processes. They are divided into three main groups: product performance indicators; process efficiency indicators; customer satisfaction indicators.

La gestión del conocimiento y la evaluación de riesgos de corrupción en el sistema de control interno: evidencias del caso mexicano

El control interno de las organizaciones es un factor importante de innovación.No sólo controla la corrupción, sino que contribuye a la mejora del desempeño.Cambios en la cultura organizacional y en lineamientos de control interno contribuyena mejorar el desempeño y la gobernanza en entidades públicas. Es necesarioimplantar nuevos enfoques de gestión que se estudian en la literatura y queprofundizan en este sentido.

Internal sample process control improves cultivation-independent quantification of thermotolerant Campylobacter

Quantification of Campylobacter is challenging and one major reason is the fact that bacteria lose cultivability due to cold or oxygen stress during storage at retail. Alternative live/dead discriminatory qPCR currently lacks standardization and might overestimate live cells in the presence of dead cells.In this study an internal sample process control (ISPC) was developed. The ISPC consists of a specified number of peroxide-killed C. sputorum cells to be added to each sample in order to monitor (i) the level of reduction of the signal from dead cells and (ii) DNA losses during sample processing. A species-specific fragment of the 16S rRNA gene of C. sputorum was selected as real-time PCR target, based on its similar size and gene copy number compared to the C. jejuni/coli/lari target and confirmed in an exclusivity study. Extension of the amplification oligonucleotides for the target of thermotolerant Campylobacter improved real-time PCR efficiency, rendering the method suitable for quantification according to international standards. Concordant PCR signal variation of both C. jejuni and C. sputorum targets in co-inoculated chicken rinses verified the suitability of the ISPC. This provides a crucial step towards implementation of cultivation-independent quantification for improved food safety of fastidious bacteria.

Ewolucja audytu wewnętrznego na świecie

EVOLUTION OF INTERNATIONAL AUDIT IN THE WORLDThe role of internal audit is to provide independent and objective assurance that anorganisation‘s risk managment, governance and internal control processes are operating effectively. The article presents the history of internal audit in the world, which due to environment changes as well as unfavourable occurrences taking place on the global market, play a remarkable role in banking systems.

Evolution of post-crisis bank regulations and controlling tools: a systematic review from a historical aspect

Amongst other causes, the excessive and uncontrolled credit growth, the high levels of leverage with insufficient high-quality capital funding, the high degree of systemic risk accompanied with the inadequate capital buffers and the insufficient liquidity buffers and excessive exposure to liquidity risk (Coen, 2016) in the early 2000’s led to first global financial crisis of the millennium in 2008–2009. Although there has been a global effort to consolidate the financial markets, different countries had different levels of regulatory response to the financial crisis, which resulted in different speed of recovery and impact on internal management control processes. This paper delivers a comprehensive review of the key global changes in the financial market and banking regulations since the 2007–2008 financial crisis by conducting a systematic review of the published papers, directives and regulations of the global, especially the new and existing American, European and Ukrainian financial regulatory bodies and International Organizations such as the Basel Committee, IMF, FSB, EU Parliament and Commission. Trend analysis provides some evidence for the stabilization effect of the new regulations, especially in case of countries with stricter supervisory frameworks (such as the Basel Standards). Finally, the impact of the regulatory environment’s changes on the existing internal controlling systems and functions of financial institutions is assessed by comparing the key pre- and post-crisis states of the different management control functions.

An efficient recovery method for enteric viral particles from agricultural soils

Enteric viruses have been recognized as the leading cause of non-bacterial gastroenteritis and hepatitis outbreaks around the world. Understanding their prevalence and persistence in the environment is important for the effective control of these infections. The aim of this study was to develop an efficient recovery procedure for viral infectious particles from agricultural soils. Samples (25 g) of soil (black earth soil, loamy soil, and sandy soil) were spiked with murine norovirus (MNV) and feline calicivirus (FCV), mixed with five different buffers and viral genetic material was extracted by 3 commercial kits. The combination consisted by the modified Eagle’s medium buffer followed by Dynabeads nucleic acid extraction kit, when the detection is conducted by molecular biology, has been identified as being the most effective procedure to preserve the viral particle infectivity and also to remove PCR inhibitors. The recovery percentages of infectious MNV for the 3 types of soils were 54.3%, 54.4%, and 56.9%. In contrast, the titres of the FCV varied depending on the type of soil, and the recovery percentages were 47.8% in the black soil, 15.6% in the loamy soil, and 17.7% in the sandy soil. Also, the results presented in this study highlight the importance of using an internal process control such as artificial inoculation with MNV at known concentrations during detection by molecular methods, in order to avoid the occurrence of false negative reactions.

INTERNAL CONTROL OF "BLIND SPOTS" OF ACCOUNTING AT INDUSTRIAL ENTERPRISE AS A FACTOR OF INCREASING THE STABILITY OF THE NATIONAL ECONOMY

The essence of the problem of “blind spots” of accounting at industrial enterprises is investigated. The practical reasons for the appearance of “blind spots” of material resources accounting are revealed. The materiality threshold of such zones at industrial enterprises is established. The danger of the existence of “blind spots” in accounting and the need of internal control to combat them is explained. The methodology of internal control in the part of estimating and controlling the risk of false initial observation of economic operations with material resources has been improved. The process of internal control is supplemented by the procedure of elaboration of managerial decisions alternatives on such measures as saving surplus of material resources, expansion of primary accounting supervision, improvement of documentary processing of facts of economic operations with material resources, and compensation of deficit of material resources.

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.

Internal cost control on the ecological quality of products

To improve the environmental quality of products due attention should be paid to control the processes related to environmental quality input of the product. The results of the study help to state the purpose and objectives of the control, also to define objects for internal control of operations cost of environmental quality. So, we believe that the main purpose of internal cost control on the ecological quality of products is the establishment of the correctness and legality of business operations, prevention of violations and abuses in the expenditure of natural, labour, material and financial resources to ensure the minimization of negative impact on the health of consumers and the environment. The basic objectives of internal control of expenditure are brought forward, but it should be noted that they can vary and depend on the size, structure, spheres and types of economic activity of the enterprise, the requirements of management personnel. In the process of identifying the objects of control of environmental quality it should be noted that this list is not exhaustive, but it is most relevant to highlight objects such as genetically modified organisms and waste production. Also the subjects of cost control to environmental quality, their functions and the information base for monitoring are determined. Proper organization of the process of internal cost control on the ecological quality of products would benefit from a clear documentation of transactions, timely and complete registration of accounting data in the registers, the true reflection of information in managerial financial reporting and ensure reduction of the negative impact on the health of consumers and the environment.