Internal Control Research Articles

Does ESG Performance Help Corporate Deleveraging? Based on an Analysis of Excessive Corporate Debt

The ESG performance of enterprises is becoming an essential form of support for investors’ investment decisions and a critical aspect to follow to achieve sustainable development of enterprises. This study uses A-share listed companies in China from 2009 to 2022 as the research sample to study the impact of ESG performance on corporate over-indebtedness and its mechanism. The findings show that good ESG performance significantly negatively affects the level of corporate over-debt and the probability of over-debt. The mechanism test revealed that ESG performance reduces the level and probability of excessive corporate debt by alleviating information asymmetry, reducing corporate debt financing costs and short-term debt length, and improving corporate operating performance. The heterogeneity analysis indicates that the inhibitory effect of ESG performance on corporate over-indebtedness is more significant in polluting industries and regions with a low degree of marketization. Through the moderating effect, we find that improved internal control quality and increased analyst attention can enhance the inhibitory effect of ESG performance on excessive corporate debt. Based on the results above, enterprises should focus on improving ESG performance to reduce the risk of excessive debt and achieve sustainable development. This paper enriches the research on ESG performance and corporate leverage manipulation from the perspective of corporate over-indebtedness, deepens and expands the research on the mechanism of ESG performance affecting corporate over-indebtedness, and explores the moderating effect of internal and external governance mechanisms on ESG performance affecting corporate over-indebtedness.

A modified method for isolation of total RNA from leaves of sweetpotato (Ipomoea batatas (L.) Lam.)

ABSTRACT Sweetpotato (Ipomoea batatas (L.) Lam.), a dicotyledonous plant belonging to the Convolvulaceae family, is the world’s sixth most important food crop cultivated for its tubers which are rich in carbohydrates. Polysaccharide and polyphenol content are high in sweetpotato, which can negatively interfere with isolating high quality nucleic acid. This study aims to determine a rapid and reliable method for total RNA extraction from sweetpotato leaves. Three procedures using Cetyltrimethylammonium bromide–Lithium Chloride (CTAB- LiCl), TRIzol and TRIzol method with modifications were carried out in 100 mg of ground tissue. The quantity and quality of the isolated RNA were evaluated using a microvolume spectrophotometer at A260/280 and A260/230 and 1% agarose gel electrophoresis. The TRIzol method with modifications showed more intact RNA when compared to the other two methods with ratios of 1.862 ± 0.02 at A260/280 and 2.027 ± 0.02 at A260/230. RNA isolated was then subjected to DNase treatment and converted to cDNA by reverse-transcriptase-PCR. Internal control genes reported for sweetpotato, alpha-tubulin and translation initiation factor (eIF) were amplified successfully from the cDNA. Considering that only a few transcriptomic studies have been done on sweetpotato, which aid in crop improvement strategies, this method is ideal for total RNA isolation from sweetpotato leaves.

Revitalizing accountability: exploring the impact of performance audits in Indonesia’s public sector

PurposeThis study examines the perceptions of auditees from ministries/agencies and local governments in Indonesia of the quality and impact of performance audits. Additionally, it investigates the extent of improvements and changes implemented by auditees in response to audit findings and recommendations.Design/methodology/approachThe research employed an online survey to collect data from auditees in ministries/agencies and local governments (at provincial, city and district levels) that underwent performance audits between 2018 and 2022. A total of 180 valid responses were analyzed using descriptive statistical techniques, including mean score ranking and frequency distribution.FindingsThe findings reveal that the auditees perceive that performance audits have a high level of quality and provide significant benefits. The respondents noted that such audits play a critical role in enhancing performance, serving as effective accountability tools and improving operational efficiency. Five key areas of significant impact were identified: (1) strategic shifts in planning and management by objectives, (2) enhancements in standard operating procedures, (3) improvements in internal control and risk management systems, (4) updates to laws and regulations and (5) institutionalization of improved governance practices. However, increased documentation and reporting pressures emerged as notable challenges.Research limitations/implicationsThe study is limited by its reliance on descriptive and correlation analysis. This restricts the depth of insights into the causal relationships between variables and limits the robustness of the findings. Future research should consider incorporating experimental designs or hypothesis testing with regression analysis to provide a deeper understanding of the causal impact of performance audits. This approach could enhance the generalizability and applicability of the findings, particularly in the framing of performance audits as a policy recommendation for mandatory implementation.Practical implicationsThe study contributes to the literature by addressing the underexplored area of performance audit impacts in developing countries, particularly Indonesia. It highlights the role of such audits as drivers of governance reform and operational efficiency, filling a critical gap in public sector auditing research. Unlike previous studies that have focused on audit processes or developed country contexts, this paper underscores the unique challenges and opportunities in a developing country setting. It is recommended that performance audits be made mandatory to enhance their effectiveness in fostering governance improvements.Originality/valueThe novelty of the work lies in its context-specific insights and focus on the broader implications of performance audits for public sector accountability and operational improvement in a developing country, with practical recommendations for policymakers and audit practitioners made.

Evaluation of the effects of Glycyrrhiza glabra and Syzygium aromaticum extracts on gene expression of Streptococcus mutans in patients with dental caries

Abstract. Al-Amili ML, Al-Jobori KM. 2025. Evaluation of the effects of Glycyrrhiza glabra and Syzygium aromaticum extracts on gene expression of Streptococcus mutans in patients with dental caries. Biodiversitas 26: 418-423. Dental caries, primarily associated with Streptococcus mutans, is among the most widespread diseases, particularly in developing regions such as Iraq. Licorice (Glycyrrhiza glabra) and clove (Syzygium aromaticum) are plants with significant economic value and antibacterial properties that potentially serve as alternatives to chemically synthesized antibiofilm agents. This study aimed to evaluate the antibacterial activity of G. glabra and S. aromaticum extracts against S. mutans and to compare their effects with those of antibiotics, mouthwashes, and toothpaste through gene expression analysis of gtfB and gtfD using RT-qPCR. In total, it did not include the methodology or provide details about the Sub-MIC because it was published separately as a second research study in another journal.100 specimens were collected from patients clinically diagnosed by dental physicians at the Hay Al-Hussein Specialized Center in Maysan City, Iraq. RNA was extracted from dentinal lesion specimens and reverse transcribed into complementary DNA (cDNA). Quantitative polymerase chain reaction (qPCR) was performed to analyze the expression of the gtfB and gtfD genes using the housekeeping gene 16S rRNA as an internal control. The analysis assessed the effects of licorice extract, clove extract, combined extracts, chlorhexidine mouthwash at sub-minimum inhibitory concentration (sub-MIC), and lacalut toothpaste on S. mutans. RT-qPCR results revealed that clove extract significantly reduced the expression of gtfB compared to other treatments, with fold changes of 0.178, 0.454, and 0.191. Licorice extract notably suppressed gtfD expression, with fold changes of 0.215, 0.390, and 0.003 for isolates 74, 80, and 46, respectively. These findings suggest that the plant extracts inhibited specific biofilm-related genes without necessarily reducing the overall bacterial growth. Therefore, these natural extracts can be developed as innovative natural anti-plaque agents.

Intelligent manufacturing policy, ESG performance, and total factor productivity: Evidence from China.

Under the global wave of intelligence, intelligent manufacturing has become a crucial means of transforming and upgrading China's manufacturing industry. Accurate evaluation of the implementation effects of intelligent manufacturing industry policies is an urgent issue. This study uses the introduction of the "Made in China 2025" policy as a quasi-natural experiment and employs the difference-in-differences method to investigate the impact of intelligent manufacturing policies on firms' total factor productivity (TFP) and its mechanisms. These results indicate that implementing intelligent manufacturing policies significantly enhances firms' TFP. Mechanism analysis reveals that intelligent manufacturing policies can improve firms' ESG performance by enhancing green technology innovation capabilities, increasing capital market attention, and reducing internal control costs, thereby enhancing firms' TFP. Heterogeneity analysis finds that intelligent manufacturing policies have a more pronounced effect on promoting TFP in large-scale enterprises, labor-intensive enterprises, firms with higher technical employee levels, companies in highly competitive industries, and enterprises in regions with higher levels of digital infrastructure development and lower economic development as compared to their counterparts. This study provides evidence of how intelligent manufacturing policies drive the high-quality and sustainable development of enterprises and offers insights for future policy formulation and implementation.

Health Inspections of Restaurant Establishments in the Attica Region, Greece. Non-compliance Data Within the Food Hygiene Sector.

Ensuring food safety is a fundamental priority for public health. The catering sector has become prominent as a convenient and cost-effective method of food supply worldwide. Adherence to proper food hygiene practices is crucial for preventing foodborne diseases. The inspection of food items is a key component of internal controls that enables the identification of non-compliance with food hygiene standards. The present study aims to assess Attica restaurant businesses' compliance with international food hygiene standards (FAO/WHO Codex Alimentarius) and European legislation on unsafe food. From January to July 2023, 74 randomly selected restaurants of small, medium, and large capacity in Attica were examined through inspections in terms of compliance for food hygiene standards. The inspections were based on (a) the completion of forms and (b) the collection of water and food samples for laboratory microbiological analysis. Data were collected using a predefined form, referencing the manual of Codex Alimentarius regarding food hygiene standards (CAC/RCP 1-1969/CAC/RCP 39-1993). Additionally, the assessment included the identification of unsafe food placement in accordance with Regulation EC/178/2002 on food safety, as well as Greek national legislation (European Commission, 2002; Hellenic Republic, 2006, 2014). The highest non-compliance rates are in "adequacy of facilities" (14.12%), "equipment maintenance and sanitization" (12.30%), "pest control" (12.45%), "personal hygiene" (7.58%), and "efficient separation of raw materials" (9.76%). Non-compliance rates for other food hygiene parameters (cooking practices, meal apportionment, storage, transport, reheating, etc.) were considerably lower. The inspection results showed that medium-sized restaurant businesses present the highest rate (56.41%) of total non-compliance compared to large-sized businesses (29.68%) and small-sized businesses (13.91%). This study demonstrates that restaurant businesses generally adhere to food hygiene and safety standards at a satisfactory level. There is a need for restaurant operators to prioritize enhancing compliance, particularly in addressing critical issues that could potentially result in outbreaks of foodborne diseases.

The Influence of Information Technology Utilization and Internal Control Systems on the Quality of Financial Reports

In the era of globalization and the Fourth Industrial Revolution, the advancement of Information Technology (IT) has progressed rapidly, significantly impacting both private and public sectors. Despite the numerous benefits offered by IT, its implementation and utilization in the public sector often face various challenges, including infrastructure limitations, human resource constraints, and a lack of commitment to technological development. This study aims to evaluate the effect of Information Technology usage and internal control mechanisms on the quality of financial reports at Government Health Facilities in Region X. A quantitative research approach was employed, involving the distribution of questionnaires to 64 employees of Government Health Facilities in Region X as the primary data source. The data collection process included measurement and statistical analysis to test the hypothesis, utilizing SPSS 25 software for Windows. The study’s findings reveal that the effective use of Information Technology has a positive and significant impact on the quality of financial reports. Similarly, the internal control system also positively and significantly influences financial report quality. Together, these two variables have a substantial impact on improving the quality of financial reports at Government Health Facilities in Region X. This study provides practical benefits by encouraging the optimization of Information Technology and the strengthening of internal control systems to enhance financial report quality.

Heterotrophic denitrification enhancement via effective organic matter degradation driven by suitable iron dosage in sediment.

The control of internal pollution was important throughout the restoration of the lake, especially the removal of sediment internal nitrogen. Experiments involving incubation were conducted in this study to investigate the effects of iron remediation on nitrogen in both water and sediment. Adding iron with varying dosage had different effects on the nutrients content and other properties of water and sediment in remediation. The higher the addition dosage of iron, the more iron ions were released into the interstitial and overlying water. The effect of 5% and 10% iron dosage on the interstitial and overlying water were more obvious, which can significantly increase the pH and decrease the ORP of the sediment, and significantly increase the TN and NH4+-N contents in overlying water. Nevertheless, higher iron addition dosage decreased relative abundance of the genera related to denitrification (Thiobacillus) and DNRA (Bacillus). The relative abundance of Anaerolineae was increased with the iron addition dosage, promoted the reduction of organic matter and iron cycle in sediment. The iron addition dosage of 2% had less effect on the overlying water quality, and promoted the nitrogen removal process by changing the abundance of microorganisms related to the sediment nitrogen cycle. This study provides essential information for internal pollution control of lakes and serves as a valuable reference for developing eutrophication management framework.

MicroRNA-155 as Biomarker and Its Diagnostic Value in Breast Cancer: A Systematic Review.

The investigation of microRNAs (miRNAs) for the purpose of identifying biomarkers and new treatments for breast cancer has been gaining traction from scientists in recent years. Of all the miRNAs, miR-155 has been reportedly involved in breast cancer development as it regulates various cellular processes such as glucose uptake, proliferation, metastasis, and migration. Various efforts have been done towards researching miR-155 as a biomarker in breast cancer; however, the results were varied. The objective of the current systematic review is to compile and summarize information regarding miR-155 as a potential diagnostic biomarker for breast cancer. All eligible studies were found from SCOPUS and PubMed databases. Out of the 376 potential eligible records, only 26 original articles were selected for further assessment according to inclusion and exclusion criteria. The expressions of miR-155 in serum, plasma, biopsy, urine, nipple aspirate fluid, serum exosomes, and peripheral blood mononuclear cells were recorded and analyzed. Besides that, the expression of miR-155 was also correlated to clinicopathological features in breast cancer patients. The area under the curve (AUC) values from receiver operating characteristic (ROC) analysis used to evaluate diagnostic sensitivity and specificity of miR-155 as a diagnostic biomarker were also recorded. The limitations such as the small sampling size, the unemployment of internal controls for quantitative real-time polymerase chain reaction (RT-qPCR), and inconsistency of sensitivity as well as specificity values of miR-155 as a biomarker have been discussed. The present study proposed that miR-155 is a good diagnostic biomarker for breast cancer; however, further clinical research is required to assess the validity of miR-155 as a potential biomarker to translate the research outcomes into clinical practice.

Các yếu tố tác động đến tỷ lệ an toàn vốn của ngân hàng thương mại tại Việt Nam: Phương pháp tiếp cận dữ liệu bảng

This study examines the development of a risk management framework within Vietnam’s commercial banking system, aligned with Basel II principles, with a focus on the Capital Adequacy Ratio (CAR), supervisory processes, and market discipline. CAR, a critical measure of a bank's capacity to absorb financial shocks and maintain stability, is mandated to be at least 8% or 9% depending on regulatory guidelines. Using both bank-specific determinants and macroeconomic variables, this study investigates the factors influencing CAR in Vietnamese commercial banks. The results reveal that bank size, return on assets (ROA), loan loss reserves, inflation, and policy interest rates negatively impact CAR, whereas financial leverage and credit ratios exhibit a positive correlation. To ensure banking stability and sustainability, the study recommends enhancing internal controls, aligning operational strategies with regulatory requirements, and adapting to evolving macroeconomic conditions.

Faktor – Faktor Yang Mempengaruhi Efektivitas Sistem Pengendalian Intern (Studi Pada OPD Pemerintah Provinsi Sumatera Selatan)

This study aims to determine the effect of leadership style, accounting information systems and audit quality on the effectiveness of the internal control system. The type of data used in this study is primary data. The data in this study were obtained from the collection of questionnaires distributed. The population in this study were 39 Regional Apparatus Organizations (OPD) of the South Sumatra Provincial Government with a sample of 39 Regional Apparatus Organizations (OPD) of the South Sumatra Provincial Government and the sample selection method using purposive sampling. The statistical method in testing the hypothesis in this study is multiple linear regression analysis. The results of this study state that: (1) leadership style, accounting information system and audit quality partially and significantly affect the effectiveness of the internal control system and (2) leadership style, accounting information system and audit quality simultaneously and significantly affect the effectiveness of the internal control system in the Regional Apparatus Organization (OPD) of the South Sumatra Provincial Government.

The effect of digital technology innovation on low carbon investment in renewable energy enterprises

The effect of digital technology innovation on low carbon investment in renewable energy enterprises

The Extent to which Accounting Information is affected by Creative Accounting Methods

The paper focuses on investigating the impact on the Korean financial sphere, specifically Creative Accounting Practices (CAPs), by using the model in the paper, upon any type of AI. Included are various systems used for recording, monitoring, and reporting financial activities with AI as an intermingling agent for financial decision-making and resources management. The survey was carried out in Iraqi Carpet and Furnishing Company, where CAPs were plead to penance for their (mis-) deeds by artificially fast improvements in the appearance of the financial statements, thus eroding the trust in the adequacy and potency of the statements. The study referred to Miller's model in doing some sort of proper line-linking on the spotting as well as the interpretational section of the CAPs in company financial statements for the years 2018 to 2022. The finding asserted that CAPs in the financials of the company misled investors, sidelined its real financial performance, eroding confidence in AI, thus making the feasibility of the financial decision-making a moot front. It is crucial to establish more control and impart strict accounting standards and business ethics to ensure that there is a guarantee as to how they produce computerized financial information and mitigate the damage resulting from CAPs. This research sheds light on the understanding of the way CAP can distort the financial records and profoundly speaks for transparency in financial reporting. This research, thus, specifically conveys a message to the world about the importance of transparency and consists in writing financial reports while building trust and enforcement in ensuring accounting standards are adhered to. Last, but not least, the study lays firm emphasis on the entry of strict internal controls, instituting periodic audits, and the like, and imparting continued education to financial statement preparers to instill virtues of ethical practices in them. Through this, the study aims to widely inculcate in the spirit of honesty and accountability within most organizations, taming the risks associated with CAPs who would guarantee nothing but an accurate level of income and self-introduction of "authentic balances."

AN ASSESSMENT OF THE DETERMINANTS OF FINANCIAL REPORTING QUALITY

This study explored the determinants of Financial Reporting Quality (FRQ) in the Ministries, Departments, and Agencies (MDAs) of Gombe State, Nigeria. By examining key factors such as internal control systems, human resource quality, information technology utilization, and the adoption of International Public Sector Accounting Standards (IPSAS), the research identified the critical elements that influence the transparency and accountability of public financial reporting. Using data collected from senior accountants across Gombe State’s MDAs, the study found that robust internal control systems significantly enhance FRQ, while IPSAS adoption marginally influences reporting quality. However, human resource quality and IT utilization have limited effects on financial reporting outcomes. The findings offer valuable insights for policymakers, government agencies, and academics, providing actionable recommendations for improving public sector financial management practices. This research contributes to the theoretical understanding of FRQ and underscores the importance of strengthening governance mechanisms to reduce fraud, mismanagement, and inefficiency in public sector financial disclosures

ANALISIS PERAN KOMITE SEKOLAH DALAM PERENCANAAN PENGEMBANGAN SEKOLAH DASAR NEGERI 71 KOTA BANDA ACEH

This research is based on problems that have been encountered at SDN 71 Banda Aceh which is directly related to the school committee in several ways which supports. This can be seen from the results of observations that the school committee no input into the learning process, no mobilization managing resources and not monitoring the participation of educational stakeholders in implementing school programs. This study aims to determine what is the role of the school committee in planning the development of SD Negeri 71 Banda Aceh City. This research uses a qualitative approach using descriptive methods with data collection techniques carried out by conducting observations and interviews. The subjects in this research are 1 chairman of the school committee, 1 principal, 2 teachers, and 2 people parents/guardians of students. The data processing technique in this research uses data collection, data reduction, data presentation, and verification using the descriptive analysis formula. The research results from observation data are that Facilitation supports the role of school committees in development planning SD Negeri 71 has 43 items with a percentage of 91.5% in the very good category, Facilitation that does not support there are 4 items with a percentage of 8.5% in the category very less. So, in general from the results of the interview analysis research that The school committee has supporting factors such as the similarity of vision schools and school committees that make good cooperation and factors barriers such as a lack of consideration and internal control implementation of the program and learning process

Fraud Triangle Analysis And Gone Theory In The Management Strategy Of Self-Managed Special Allocation Fund In Education Sector

This study aims to analyse the application of the Fraud Triangle, which includes pressure, opportunity, and rationalisation, as well as the GONE Theory, which involves greed, opportunity, need, and exposure, in the self-management Special Allocation Fund (DAK) management strategy in the education sector. The results show that pressure on fund managers often comes from demands to meet unrealistic physical or non-physical development targets, while opportunities arise from weak supervisory systems, lack of transparency and inadequate internal control mechanisms. Rationalisation is found in the form of justifying fraudulent actions with certain reasons, such as urgent needs or for the smooth running of the program. In the GONE Theory perspective, greed is the main driver of misuse of funds, while necessity and weak risk exposure increase the probability of violations. There are several things that can be done by educational institutions and students themselves to minimise student fraud behaviour, first from the aspect of pressure which is the main aspect that encourages someone to commit fraud. The pressure aspect comes from a person's psychology, so the way to overcome it is to provide positive directions, and provide spiritual and emotional strengthening to students. Transparent, accountable DAK management supported by strong supervision is essential to ensure that the main objectives of using funds are achieved, namely improving the quality of education and equitable development.

Kinship intensity and ESG performance: the role of socioemotional wealth in family businesses

ABSTRACT This study examines how family embeddedness affects ESG performance in family businesses. Using socioemotional wealth theory, it finds that higher kinship intensity in the board leads to fewer financial constraints, a long-term management perspective, and stronger internal controls, all of which significantly enhance ESG performance. Data from Chinese A-share listed family businesses support these findings and reveal the underlying mechanisms. This research provides new insights into the unique governance role of family businesses and their ability to improve ESG performance by balancing economic efficiency with socioemotional wealth.

Mitigating Inventory Losses in Palm Oil Plantations: An Internal Control Analysis of PT XYZ

This study aims to evaluate the internal control over supporting inventory at PT XYZ a palm oil plantation. Inventory is one of the important factors in production processes, without sufficient inventory a production cannot run optimally. However, Improperly controlled inventory can lead to losses from damaged goods that become unusable in palm oil production. Using qualitative research with a case study approach, this research conducted a literature study and interviews with relevant stakeholders to find out the causes of the loss of supporting inventory and provide recommendations on these findings. Results of this study indicate that company needs to including supporting inventory as a component in conducting risk assessment, increasing coordination between departments, using electronic systems to replace manual processes and making SOPs for risks that are currently not mitigated to avoid inventory losses in the form of damage or expiration. Keywords: Internal Control; Supporting Inventories; Obsolescence; Palm Oil.

Diseño de un sistema de control interno basado en el enfoque teórico Coso III para la empresa de confecciones Patitex de Ibarra - Ecuador

In this research, an internal control system based on the COSO III model was designed for the Company Patitex, Ibarra-Imbabura. The study had a mixed approach (quantitative and qualitative) and descriptive scope, non-experimental design. The internal control questionnaire and interview instruments were used. The results showed that there is poor internal control in the company, due to the lack of some instruments such as: a formal function manual and procedures manual, as well as the lack of a person responsible for evaluating, identifying and mitigating the risk. operational, lack of control in activities, among other control weaknesses. Therefore, an adequate internal control system is proposed that allows you to prevent risks and improve your processes.

Deteksi Kecurangan melalui Sistem Pengendalian Internal, Budaya Organisasi dan Etika Perilaku

Testing the tendency to commit fraud can be seen from several factors, namely the internal control system, organizational culture and ethical behavior as well as testing the role of accounting information systems in ethical behavior against fraud. Primary data was collected through a survey of 146 respondents given to employees of the Semarang Commissariat Bank Perkreditan Rakyat. Data analysis uses multiple regression path analysis using WarpPLS software. The research results reveal that internal control, organizational culture and ethical behavior have a significant negative effect on the tendency to commit fraud. These results indicate that there is a partial mediation effect on the ethical behavior variable. However, the effectiveness of the accounting information system does not have a moderating effect on ethical behavior on the tendency to commit fraud. This is due to pressure, opportunity and rationalization from employees themselves which can influence the tendency to commit fraud. Keywords: Organizational culture; Ethical Behavior; Internal Control System; Accounting information system; Fraud.