Internal Control System Research Articles

The Influence of Organizational Culture on the Government Internal Control System And Its Impact on the Quality of Financial Information Systems in the Regional Revenue Agency of West Java Province

The purpose of this study was to see how the influence of organizational culture on the government internal control system and its impact on the quality of the financial information system. The sample was 126 people spread across 4 district/city representatives, samsat, and the Regional Revenue Agency Office of West Java Province. The results showed a significant positive effect of Organizational Culture on the Government Internal Control System within the Regional Revenue Agency of West Java Province. There was a significant positive effect of Organizational Culture on the Quality of Financial Information Systems within the Regional Revenue Agency of West Java Province, and there was a significant positive effect of the Government Internal Control System on the Quality of Financial Information Systems within the Regional Revenue Agency of West Java Province. Moreover, Organizational Culture affects the Government Internal Control System. It significantly impacts the Quality of the Financial Information System within the Regional Revenue Agency of West Java Province.

Risk Management Practices and their Implications for Performance and Market Share in Indonesian Islamic Banks

This paper analyzes Indonesian Islamic banks' risk management and market share. The mixed-methods research includes a comprehensive literature review and a qualitative case study of three of Indonesia's major Islamic banks. The case study finds that risk management best practices helped the chosen Islamic banks prosper. These steps include some common practices such as diversification of the financing portfolio, efficient internal control systems, and strict compliance with Shariah principles. Additionally, the study suggests that the implementation of risk management practices should be tailored to the specific needs and characteristics of each Islamic bank. practices such as diversification of investment portfolios, strict adherence to Shariah principles, and the use of advanced risk management tools and techniques. Additionally, the study suggests that effective risk management can enhance the reputation and credibility of Islamic banks in the eyes of their stakeholders. Getting up a department for risk management, integrating risk management, and making the organization's risk culture stronger This study emphasizes risk management's role in Indonesia's Islamic banking's long-term growth. By tackling risk management challenges and creating solid risk management methods, Indonesian Islamic banks can enhance their performance, increase their market share, and help grow a vibrant Islamic banking industry

PERAN FRAUD TRIANGLE TERHADAP KECURANGAN LAPORAN KEUANGAN

The purpose of this study is to comprehensively understand and examine how the Fraud Triangle contributes to financial statement fraud. This study employs a descriptive literature review strategy. Six out of nine analyzed publications indicate that the Fraud Triangle has a significant impact on financial statement fraud. Quantitative data studies support this conclusion by demonstrating a strong positive relationship between the discussed fraud and the components of the Fraud Triangle. On the other hand, according to three other studies, financial statement fraud is not significantly influenced by the Fraud Triangle. This phenomenon reflects that, despite many companies implementing internal control systems, weaknesses in their execution still allow fraud to occur.

Pengaruh Sistem Pengendalian Intern, Sistem Informasi Akuntansi, Dan Komitmen Organisasi Terhadap Akuntabilitas Pengelolaan Alokasi Dana Desa Pada Desa-Desa di Kecamatan Kupang Tengah

This research aims to determine the influence of the internal control system, accounting information system, and organizational commitment on the accountability of village fund allocation management in villages in the Kupang Tengah District. The data used in this research are primary and secondary data. The data obtained in this research were collected through questionnaires distributed directly to all village officials in the Kupang Tengah District. This study uses a Quantitative approach with a saturated sampling technique. The data analysis technique used is descriptive statistical analysis, validity test, reliability test, normality test, and hypothesis testing. The analysis tool used is Statistical Package for the Social Sciences 23 (SPSS 23). The results of this study indicate that there is a significant influence of the internal control system, accounting information system, and organizational commitment on the accountability of village fund allocation management.

Pengaruh Penerapan Sistem Informasi Akuntansi, dan Sistem Pengendalian Internal terhadap Kualitas Laporan Keuangan dengan Kompetensi Sumber Daya Manusia sebagai Variabel Moderasi

This study aims to analyze the influence of the application of Accounting Information Systems (AIS), Internal Control Systems (ICS), and Human Resource Competence (HRC) on the quality of financial statements, with HRC as a moderating variable. The research was conducted on financial department employees at Eyelink Group using a quantitative approach and Partial Least Squares (PLS) analysis technique. The findings reveal that AIS and ICS do not have a significant direct impact on the quality of financial statements. However, HRC significantly affects the quality of financial statements. HRC also strengthens the relationship between AIS and the quality of financial statements but does not significantly moderate the relationship between ICS and the quality of financial statements. These findings underscore the importance of competent human resource management to support optimal AIS implementation and improve the quality of financial statements. The study recommends the development of human resource competence through continuous training and education as a strategic measure to enhance financial reporting quality.

Analisis Sistem Informasi Akuntansi Penjualan dan Pengendalian Internal pada PT Dwi Ola

The sales accounting information system and internal control are crucial components in ensuring the operational effectiveness and accuracy of financial statements in the company. This study focuses on PT Dwi Ola, which relies on LPG gas sales, to analyze the implementation of cash and credit sales accounting information systems as well as existing internal controls. The results of the study show that although the accounting information system at PT Dwi Ola already includes transaction recording and sales reports, there are still weaknesses in system integration that result in inconsistencies between physical stock and system records. In addition, internal controls are not optimal, with a lack of separation of duties and a robust authorization system, potentially increasing the risk of fraud. This study recommends the importance of separation of functions, improvement of internal control systems, and increased supervision to improve efficiency and accuracy in the sales process and recording of transactions in the company.

Internal Audit Governance Factors and their effect on the Risk-Based Auditing Adoption of Commercial Banks in Jordan

IntroductionThis paper aims to explore the impact of internal audit governance factors on the risk-based auditing adoption of commercial banks in Jordan. The population targeted in this paper were managers of the accounting and finance departments in the commercial banks listed on the Amman Stock Exchange. MethodsUsing the purposive sampling method, 339 responses were obtained in the final sample, which constituted a validity rate of 73.7%. Structural equation modeling (SEM) was adopted as a statistical approach for hypotheses assessment. ResultsThe findings of this paper confirmed the positive impact of internal audit governance factors, including internal audit attributes, audit committee attributes, risk management system, and internal control system, on risk-based auditing adoption. ConclusionA set of recommendations was provided to bank managers, such as enhancing the Board's supervision and monitoring of the internal audit function's actions by encouraging Board members to grasp risk-based auditing thoughts and the value it delivers to the Bank.

The Effect of using Standard Costs in Controlling Cost Elements

Abstract: Recently, standard costs are widely used in cost management because of companies' needs to remain competitive for better productivity and cost. To achieve that goal, standard costs have been used in good cost management in order to control the cost elements in production. This study aims to find out the effect of using standard costs in controlling the elements of cost. The method used in this research is descriptive qualitative analysis and uses a literature study to collect the data. The research results show that cost control using standard costs can enable companies to carry out their planning and control functions easily, while standard costs can also be used to support management functions by communicating targets and maintaining an efficient internal control system. Some of the negative aspects that managers might consider when setting standard costs are that individual performance can be performance-oriented, lack of motivation of other employees, poor morale, frustration, and resistance.

Analysis implementation system control internal government in Indonesia

Law No. 1 of 2004 concerning the Treasury of the State shall preserve the President as the Head of Government regulating and organizing the Government's Internal Control System in Indonesia. In 2008, the Government of Indonesia issued Government Regulation Number 60 of 2008 concerning the Government's Internal Control System to implement the provisions of Article 58 paragraph (2) in Law Number 1 of 2004. The internal control system adopted in Indonesia was adopted from the concept of internal control was made by the 1992 Committee of Sponsoring Organizations of the Treadway Commission (COSO). Since the enactment of Government Regulation Number 60 of 2008 counted for 10 years the regulation has come into force. However, the policy contained in Government Regulation Number 60 Year 2008 has not been fully implemented in government governance in Indonesia. This can be seen from the results of the government internal control system maturity evaluation conducted by BPKP until March 2018 which shows the maturity level of SPIP which is still far from the target with the majority of Institutions still below level 3 or far from level 5 (optimum level) and weaknesses of the Internal Control System The government found by the Supreme Audit Agency in the examination of 2015-2017. Factors that can hinder the implementation of the government's internal control system in Indonesia include: (a) Weakness in terms of content and context of the Policy, (b) Absence of sanctions, (c) Inadequate judgment (d) Errors in translating orders, (e) Management neglect, (f) Collusion.

Correlational analysis of gender, professional training and financial performance in restaurant companies in Mexico

This research was born with the intention of analyzing the importance of professional training, as well as the gender of people who run restaurant companies in two States of Mexico. To meet the objective of the study, a quantitative research, non-experimental, and transactional design was carried out. Likewise, the study is correlational, since it seeks to study the degree of association between the behavior of gender variables, professional training and their relationship with financial performance considering the internal accounting control system and the financial internal control system. With Cronbach's alpha values above 0.5, using the Kolmogorov-Smirnov Test correlation coefficient using the Lilliefors significance correction. With six hypotheses, finding four of them accepted and two rejected. With very interesting results because financial performance is indistinct whether the manager is a man or a woman.

Effectiveness of internal control systems: A case study of a TVET College in Vhembe District, Limpopo Province, South Africa

This study examined the efficacy of the internal control systems at a TVET College in the Vhembe district, emphasising the five essential components of an internal control system: the control environment, risk assessment, control activities, information and communication processes, and monitoring. This research utilises a sample of 52 permanent employees. The selected responders possess familiarity with internal control systems and are engaged in the development and execution of the organization's internal control system. Descriptive statistics, including frequencies, percentages, and cumulative percentages, were employed for analysis. The study's findings indicated that the institution's control environment was predominantly effective, whilst the remaining four components of its internal control system were moderately effective. The researcher determined that the institution's internal control system was moderately effective. The findings indicate that TVET College management should prioritise the enhancement of internal control systems to improve operational efficiency and risk management. The research emphasises the necessity for policies that fosters the ongoing enhancement of internal controls, potentially resulting in stronger governance and accountability inside the organisation.

Internal Control System for Mexican Public Schools: The Case of An Elementary Public School in Querétaro, México

Just like an onion, we must analyze corruption in layers. Firstly, where do people obtain values in order to participate in society? The answer is: at home, because that is where education begins. Parents are a strong role model and behavioral example for children, so, in order to let them play a more continuous role, they should participate in formal education by creating an organization that allows them to manage some school activities. Although regulation exists, the challenge arises when money is collected, because parents often don’t know basic accounting principles and mostly they only have basic reading and writing skills. There is no effective management of resources, opening the door to acts of corruption. This project is a transformational proposal to help public elementary school parents’ associations to be successful as an organization with higher standards of integrity. The final product is an internal system enabling better control of financial resources in an easy to learn and understand tool.

DEVELOPMENT OF THE COMPANY'S INTERNAL CONTROL SYSTEM IN THE DIGITAL ECONOMY

The problems of developing the internal control system of companies are becoming more acute in a rapidly improving digital economy. This article examines the issues and prospects of the business internal control system in the digital economy. A SWOT analysis was compiled through which the advantages and disadvantages of automation of the internal control system were discussed, noting possible benefits such as improved efficiency, reduced errors and risks, and accelerated decision-making processes. At the same time, they point to other problems, such as ensuring information security, and data protection, and training employees to use new technologies. The main purpose of the article is a comprehensive review of the relevance of the development and problems of internal control of the company in the digital economy on the world stage. The article discusses important topics such as the analysis of current trends in the digital economy at the global level and their impact on the requirements for internal control systems, such as compliance with international standards, local laws, and the conduct of state control. The article also discusses existing automation products, considering the positive aspects and problems of implementation, as well as popular programs according to the level of popularity of software implementation for internal control and financial reporting. In conclusion, the study emphasizes that in the digital economy, internal control systems must be constantly updated and developed, and companies, in turn, must actively use modern information technologies to increase efficiency and competitiveness.

Inovasi Pengendalian Keuangan: Memperkuat Kinerja Siklus Murabahah KSU Kota Santri Bojong

ABSTRACT KSU Kota Santri Bojong has Murabahah products that are of interest to the community. This financing has operational standards that have been set by the internal organization. However, whether the standard has been implemented as it should. This internal control test aims to determine the extent to which the internal control system is operating. Includes activities of applying as a cooperative member, financing application, verification, financing, installments and repayment. Researchers used adopt observation, interview and documentation methods. Researchers used internal control questions to obtain reinforcing and comparative data. Triangulation is the basis for interpreting the analysis of comparing field facts with standards that should be. The results of this study state that the Murabahah cycle standards have been carried out, but still need improvement. Through the murabahah accounting information system described and field documentation related to the treatment of each stage of the murabahah cycle. KSU Kota Santri faces various challenges, one of which is the separation of functions and digitalization of the murabahah system. Some stages of Murabahah still depend on manual methods, so KSU Kota Santri needs an update that is more effective, efficient, complex and economical.

Introduction of methodology for assessing the quality of medical examination of adult population in system of internal control of quality and safety of medical activities

INTRODUCTION: It is reasonable that the realization of the state project of medical examination of adult population (MEAP) be assessed simultaneously with the assessment of the quality of medical care, and be integrated into the internal control of quality and safety of medical activities. The process approach is effective in realization of quality control of medical care provided as part of MEAP. AIM: To develop and introduce the methodology of assessing MEAP quality, to assess the results of expertise conducted at the initial stage of MEAP introduction, and on the basis of the results of introduction of measures that improved MEAP organization. MATERIALS AND METHODS: To assess the quality of MEAP, the ‘Expert Assessment Card for a Medical Examination Case’ was developed and introduced using the integrated quality assessment method. The assessment was carried out according to the blocks of the Card developed by I. V. Uspenskaya and O. N. Selyavina in accordance with the adopted assessment scale (0–0.5–1). The expertise of MEAP cases was carried out twice: in 2013 at the initial stage of realization of MEAP according to the new procedure, and in 2018 on the basis of the results of the realization of measures to improve the organization of MEAP. RESULTS: Comparative analysis of defects identified at the initial stage of the medical examination in 2013 and as a result of the work performed for the introduction of the quality control system of medical examination cases in 2018, revealed a marked decrease (by 27.0%) in the defects in determining risk factors for chronic non-communicable diseases and indications for prescribing II stage MEAP measures. For other defects, a marked decrease by 5.2%–17.3% was revealed. Nevertheless, the leading positions were retained by defects in prescribing stage II measures (34.5% of the analyzed expert cards) and in determining risk factors for chronic non-communicable diseases (26.5% of the analyzed expert cards), which requires continuation of the work on MEAP control quality as part of the internal control of quality and safety of the medical activities. CONCLUSION: Expert integration of the assessment of organization and introduction of MEAP and of the internal system of control of the quality and safety of medical activities led to a reliable reduction of the number of defects according to the results of expert assessment of medical examination cases.

Knowledge Mapping of Research on Internal Control in Government: A Bibliometric Analysis

The interest in the concept of internal controls system has been growing consistently over the past few years to study the use and the effectivity of this system, particularly in government. Yet, a comprehensive and updated review of this field is still lacking. In this paper, we use bibliometric analysis and VOSviewer software to investigate the research related to the government internal control. Focusing on publications in journals indexed in the Scopus database, we conducted a quantitative bibliometric analysis from 1970 to 2023 and found 397 journal articles. Result shows that it has grown considerably in the last few years. We were also able to identify the authors, journals, nations or regions, and citation counts that helped to grow the body of research on this topic. Indonesia is the nation with the greatest number of published documents related to the topic, followed by China, the United States, and other countries. According to the author's keywords, accountability, control, ethics, fraud, governance, Malaysia, and performance have all received a lot of attention. In the end, we draw the conclusion that more interdisciplinary research is required to gather information and to improve the study by employing different analytical tools.

Detecting Asset Misappropriation to Create Peace, Justice and Strong Institutions in Achieving SDG 16

Objectives: This study aims to identify factors that influence the potential for fraud in Micro, Small and Medium Enterprises (MSMEs). This research is in line with SDG 16's goals of peace, justice and strong institutions. Theoretical Framework: The phenomenon of fraud and asset misappropriation is increasing globally, with asset misappropriation being the most common type of fraud in companies (86%) and a median loss of $100,000. Method: the research method includes the preparation stage, literature study for the preparation of research instruments, questionnaire preparation, pilot testing, data collection through questionnaires, and data analysis using validity tests, reliability tests, classical assumption tests, and hypothesis testing. Research Results and Discussion: The first important finding is that asset misappropriation that occurs in MSMEs based on the owner's perspective is not influenced by pressure, capability, and religiosity. The second important finding is that asset misappropriation that occurs in MSMEs based on the owner's perspective is influenced by opportunity, rationalisation, and integrity. This study failed to conduct a moderation test for the religiosity variable on the effect of the independent variable on the dependent variable. Research Implications: MSME owners must aware with the internal control system to minimise opportunities for misappropriation of assets by employees and must ensure and increase the loyalty and integrity of workers in MSMEs. Originality/Value: This study uses the religiosity variable as a moderating variable for factors that are thought to be the cause of asset misappropriation and looks at the occurrence of asset misappropriation from the perspective of business owners.

EXTRAORDINARY CRIMES OF CORRUPTION VERSUS EXTRAORDINARY EVENTS OF COVID-19 IN INDONESIA

The COVID-19 pandemic has presented new challenges in governance in Indonesia, including increasing opportunities for corruption in the management of public funds. This study aims to examine the influence of internal factors, such as the weakness of the internal control system, and external factors, such as inflation, on corruption during the COVID-19 pandemic. The research method used panel data analysis with Partial Least Square (PLS) software in 32 provinces in Indonesia during the 2018-2021 period. The findings show that inflationary pressures significantly affect corruption actions, while weaknesses in the internal control system do not show a significant effect. These results indicate that the pandemic, in addition to being a health crisis, also provides opportunities for corrupt practices due to weak supervision. The implications of this study emphasize the need to improve internal control systems and holistic anti-corruption strategies, including increased transparency and accountability in the management of public funds during emergencies.

PENERAPAN GOOD SCHOOL GOVERNANCE DAN FAKTOR-FAKTOR YANG MEMPENGARUHINYA

This study aims to determine the implementation of Good School Governance and the factors influencing it in junior high schools in Banda Aceh City. The sampling technique used was saturated sampling, in which there were 120 respondents from 30 public and private junior high schools in Banda Aceh City consisting of school principals, treasurers, administrative staff, and teachers. Data collection was carried out using a questionnaire which was distributed directly to respondents. The analytical method used was multiple linear regression with the SPSS version 29 application. The results showed that junior high schools in Banda Aceh City had implemented Good School Governance and Control Systems. Internal, Human Resource Competence and Utilization of Information Technology affect the variable Good School Governance. This means that the better the Internal Control System, Human Resource Competency, and Use of Information Technology, the better the implementation of good school governance. The use of Information Technology is the factor that has the greatest influence on Good School Governance. Utilization of Information Technology is the factor that has the greatest influence on Good School Governance. Suggestions for future researchers are to develop the research model used in this research, either by increasing the number of samples, replacing respondents with school committee members or other relevant school residents, and expanding the independent variables to be studied.

Transparency and Accountability in the Management of Independent Mosque Funds: A Case Study of Medan City Mosque

This study examines the level of transparency in the management of independent mosque funds in Medan City, North Sumatra, Indonesia, evaluates adherence to accountability principles, and provides actionable recommendations for improvement. Using a quantitative research approach, questionnaires and observations were used to collect data from mosque administrators, worshippers, and donors at the Al-Musabbihin Mosque. These instruments were designed to assess trust and participation in mosque activities. Data analysis was conducted using Structural Equation Modeling (SEM) with Smart PLS 3.0, focusing on Outer and Inner Model evaluations. The results reveal that human resource (HR) competency, internal control systems, technological integration, stakeholder engagement, and compliance with financial management standards significantly impact transparency and accountability in mosque fund management. Additionally, organizational commitment amplifies the positive influence of HR competency and internal controls on these outcomes. The study highlights the critical need for ongoing HR development through targeted training and education to ensure effective and accountable fund management. Furthermore, establishing comprehensive internal control systems is essential to prevent fund misuse and build public trust. The findings demonstrate that transparent and accountable fund management fosters public confidence, optimizes resource utilization, and enhances the mosque’s capacity as a vibrant and empowered social institution.