Internal Control Management Research Articles

Board Characteristics and Internal Control Risk Management in Urban Investment Companies: A Case Study of Guangxi Urban Investment Group

This study explores the relationship between board characteristics and internal control effectiveness and risk management practices in Chinese urban investment companies. Using a mixed research method combining questionnaire surveys and case studies, an empirical study was conducted on 104 urban investment companies, with the Guangxi Urban Investment Group as a case study. The study found that board characteristics are significantly and positively correlated with internal control effectiveness and risk management practices. Among these, the impact of board expertise is the most significant, followed by board independence and diversity. Board size is positively correlated with internal control effectiveness, but has no significant relationship with risk management practices. The study also found that company size has a moderating effect on the relationship between board characteristics and governance practices. This study provides theoretical and practical guidance for the corporate governance of urban investment companies, emphasizing the importance of improving the professionalism, independence and diversity of the board of directors. The study suggests that urban investment companies should adjust the composition of the board of directors according to their size and complexity, and adopt a comprehensive governance framework to integrate internal control and risk management practices. Future research can further explore the relationship between board characteristics, governance practices and company performance, as well as the impact of emerging technologies on the governance requirements of urban investment companies.

Empirical research on the effects of mandatory auditing for SMEs on their internal control quality and management’s perceptions: Evidence from Egypt

Empirical research on the effects of mandatory auditing for SMEs on their internal control quality and management’s perceptions: Evidence from Egypt

Good Governance, Internal Control, and Village Financial Management Performance: Examining the Moderating Effect of Tri Hita Karana in Denpasar City

The village fund program in Indonesia is planned to support the development and implementation of the Village Government. The village fund program certainly requires village officials to be able to carry out accountable financial management. Village financial management must be managed properly in accordance with the principles of good governance and implement good internal control. However, in practice, there are still some irregularities that occur in village financial management, one of which has occurred in Denpasar City, Bali Province, Indonesia. These irregularities are generally committed by individuals who do not have good ethics and morals. Therefore, it is necessary to harmonize the concept of village government management with the cultural values of local wisdom that developed in Bali, one of which is the concept of Tri Hita Karana culture. Through a strong positive culture, it can undoubtedly produce good performance and achievement for each individual and organization. This study aims to examine the ability of Tri Hita Karana to moderate the effect of good governance and internal control on village financial management performance in Denpasar City. This study uses a quantitative approach using primary data. Data collection techniques with questionnaires. This research was conducted in all villages in Denpasar City. Sample determination using nonprobability sampling method with purposive sampling technique. The data analysis technique used was Moderated Regression Analysis (MRA). The results showed that good governance and internal control had a positive effect on village financial management performance. Tri Hita Karana culture cannot moderate the effect of good governance and internal control on village financial management performance in Denpasar City. The application of the principles of good governance and internal control can improve the effectiveness and efficiency of village financial management. Although the Tri Hita Karana culture has been developing for a long time in Bali, the community has not been able to fully integrate these cultural values in formal practice activities. So that in the future it still requires improvement and better adjustment.

Correlational analysis of internal control and inventory management in commercial SMEs of Chimbote

The study aims to determine the relationship between internal control and inventory management in micro and small enterprises (SMEs) of Chimbote. A quantitative approach with a correlational design was adopted, and the sample consisted of 160 SMEs, using structured questionnaires on a Likert scale to collect data. Spearman's Rho coefficient was used to find the levels of association. The results indicated a moderate positive correlation (0.623) between internal control and inventory management, highlighting the importance of dimensions such as the control environment and supervision. However, it was found that only 37.5% of SMEs manage their inventories efficiently, revealing areas for improvement in demand forecasting and inventory policies. In conclusion, strengthening internal control and optimizing inventory management practices are essential strategies for SMEs in Chimbote to optimize their resources, reduce costs, and increase their competitiveness in a globalized and demanding market, thus promoting their sustainability and long-term growth.

Corporate Governance Mechanisms And Internet Financial Reporting Of Selected Quoted Manufacturing Companies In Nigeria (2012-2021)

The study analysed online financial reporting practices among listed manufacturing organisations and investigated the level of compliance with regulations. It determined the effect of corporate governance mechanisms on internet reportage of finance among manufacturing firms in Nigeria. These were done with a view to examining the relationship that exists between corporate governance mechanisms and internet financial reporting among Nigerian manufacturing firms. The study adopted a longitudinal research design. For this investigation, secondary data were used. The study's participants comprised 86 manufacturing firms quoted on the Nigerian Exchange Group (NGX) between 2012 and 2021. A total of 22 manufacturing companies were purposefully selected due to the availability of complete data during the research period and the adoption of IFRS. The data was collected from the websites of the manufacturing companies and their certified financial records. The data covered IFRS disclosure items classified into presentation format and content (FASB 2000), percentage of the independent director, composition of board committees, board diligence, audit committee size, non-executive director as part of the audit committee, internal control management (as mandated by CAMA 2003, CAMA 2020, SEC 2011, and NCCG 2018), and control variables (profitability and leverage). The results showed that corporate governance mechanism measured by board size (t = 5.09, p < 0.05), risk assessment (t = 5.34, p < 0.05), board diligence (t = 2.42, p < 0.05) had a significant effect on internet financial reporting, while Audit committee (t=1.8 p>0.05) had no significant effect on internet financial reporting among Nigeria manufacturing firms. The study concluded that corporate governance mechanisms enhanced internet financial reporting of quoted manufacturing companies in Nigeria

INTERNAL CONTROL AS SUPPORT TO THE MANAGEMENT FUNCTION FOR THE PURPOSE OF DETECTING IRREGULARITIES AND RISK MANAGEMENT

Risk management is an important component of the competitiveness of every business entity and a prerequisite for making timely and correct decisions. Bearing this in mind, the question arises as to how the risk management process is established in companies, how developed it is, that is, what is the role of the internal control system for the purpose of detecting irregularities and risk management. This question also represents the basic research problem of this paper. The goal of the research is to theoretically and empirically process the connection between internal control and company management and to investigate the degree of development of internal control in manufacturing companies operating in Nišava District. Empirical research provides answers to the key question that is the basis of the research itself, namely: does internal control support the management function for the purpose of detecting irregularities and managing risks?

ASSESSMENT OF COMPONENTS OF THE INTERNAL CONTROL SYSTEM FOR THE PURPOSE OF RISK MANAGEMENT OF ORGANIZATIONS

An effective internal control system is closely related to the risk management of the organization, namely, it reduces the risks of failure to achieve the set goals and, according to the COSO concept, provides reasonable assurance of their achievement. The subject of the study is the assessment of the components of the internal control system for the purpose of risk management of organizations. The object of the study is the internal control system of the organization. The article raises the problem of developing a methodology for assessing the formation of all components of the ICS in accordance with the COSO model. The problem lies in the insufficient number of studies on the systematization of control procedures for each component of the ICS in the context of assessing the system, describing standard and non-standard situations that must be responded to promptly and how to assess such situations in the context of internal control and risk management through qualitative indicators that are not measurable. Model. To substantiate the methodology for assessing the formation of all components of the ICS in accordance with the COSO model, the criterion for assessing and measuring non-financial indicators of financial stability of organizations is presented. The study uses the grouping method, which allows studying the interrelations of phenomena, as well as their interdependencies, to identify the influence of certain factors and trends. The article uses the comparative method as the most common method of analysis, as well as the methods of induction and synthesis. Conclusions. The methodology for assessing the formation of ICS components in accordance with the COSO model in organizations is of theoretical significance in terms of developing scientific and theoretical provisions concerning the construction of internal control and improving the effectiveness of ICS, as well as practical significance in the context of applying the developed package of documents. Practical significance. As a result, the methodology for assessing the formation of all ICS components in accordance with the COSO model was substantiated, a number of documents were developed that systematized the indicators for assessing the ICS components, including non-financial indicators. It is proposed to form a map of typical situations: standard and non-standard, as well as situations with increased complexity, allowing you to create new algorithms for action to reduce risk. Originality. The author's contribution is to develop a methodology for assessing the formation of all ICS components in accordance with the COSO model.

Analysis of Internal Control Management Problems in Hospital Finance and Accounting

This paper outlines the internal control management of hospital accounting and finance, introducing its concept, importance, and objectives. It then analyzes the problems existing in the internal control management of hospital accounting and finance, including an unsound management system, insufficient system implementation, inadequate risk assessment and control capabilities, poor information communication, weak internal supervision, and uneven personnel quality. The reasons for these problems are also analyzed, including outdated management concepts, irrational organizational structures, imperfect training and incentive mechanisms, low levels of information technology, and changes in the external environment. This paper proposes improvement measures for the internal control management of hospital accounting, including enhancing the management system, strengthening system implementation, improving risk assessment and control capabilities, enhancing the information communication mechanism, strengthening internal supervision, improving personnel quality, advancing information technology, and adapting to changes in the external environment.

Marketing Channels for Contract Financing Control of High-tech Listed Companies: Basis for Strategic Plan

Abstract. China's high-tech enterprises have experienced exponential growth in both number and market value, with significant contributions to innovation-driven development, as evidenced by the proliferation of listed companies on the Science and Technology Innovation Board and the Beijing Stock Exchange. This study delved into an assessment of corporate governance, internal control management, and risk management within high-tech enterprises in China, with a specific emphasis on contract financing control. Through a combination of analysis of publicly disclosed data, questionnaire surveys, and examination of internal control documents, the research aimed to provide targeted recommendations for enhancing internal control mechanisms and optimizing contract financing-related management systems. The findings highlighted strong compliance with domestic and international laws and regulations among the 10 selected high-tech listed companies, demonstrating robust performance across parent and subsidiary operations. While internal control documents were comprehensive, areas for improvement were identified. Despite favorable impacts of marketing channels on contract financing control strategies, challenges persisted, including identifying risk sources and addressing issues related to contract compliance, digital technology application, and customer security concerns. Notably, challenges in financial control marketing channel construction encompassed cash flow management, customer credit evaluation, bad debt, and default risks.

Internal Control and Administrative Management of Agricultural Companies in the Majes Distric

Abstract: The problem addressed in this study is the relationship between internal control and administrative management in agricultural companies in the Majes district in 2022. The objective was to determine how these factors correlate and affect organizational performance. The research was conducted using a non-experimental and descriptive correlational design. Data were collected from 28 companies using validated surveys and questionnaires, processed with SPSS v28 software. The results showed that 60.7% of the companies had high levels of internal control and administrative management, while 39.3% did not reach an optimal level. The Pearson correlation test yielded a value of 0.893, indicating a significant and direct relationship between the two variables. This suggests that better internal control management is associated with greater efficiency in administrative management. It is concluded that strengthening internal control can significantly improve administrative management, which is crucial for the sustainability and competitiveness of agricultural companies in Majes. Implementing effective internal control measures can reduce risks and increase operational and administrative efficiency.

Does Ethical Leadership Moderate Internal Control and the Levers of Control on Performance?: A Study of Village Credit Institutions (LPD) in Denpasar City

Companies or organizations, particularly Village Credit Institutions (LPD), need special attention due to the observed decline in performance across various cases. Therefore, this study focuses on the internal control system, management control system, levers of control, and their impact on organizational performance, moderated by ethical leadership. This research intends to look into the significant impact of these variables on organizational performance, particularly when moderated by ethical leadership. Sampling was conducted using a purposive method and hypothesis testing adopted the Structural Equation Modeling method utilizing the application of Partial Least Square. The findings indicated that the internal control system and management accounting system contribute positively to organizational performance, while the levers of control indicated no significant influence. Additionally, ethical leadership failed to augment the effect of the variables on organizational performance. This research holds crucial implications for LPD, emphasizing the importance of controlling activities through policies and procedures to enhance performance.

Internal Control Management and Risk Prevention Measures of State-Owned Enterprises

Internal Control Management and Risk Prevention Measures of State-Owned Enterprises

The Effect of Internal Control Effectiveness, Compensation Suitability, Management Morality, and Unethical Behavior against the tendency of Accounting Fraud

The Effect of Internal Control Effectiveness, Compensation Suitability, Management Morality, and Unethical Behavior against the tendency of Accounting Fraud

An Analysis of the Development of Investment Banks' IPO Business under the Registered System

Under the reformed registration system, the role of investment banks in the Initial Public Offering (IPO) business has evolved significantly from the approval system. As crucial "gatekeepers" of the capital market, these banks now bear the responsibility of thoroughly examining issuance application materials for truthfulness, accuracy, and completeness. While the IPO business promises a prosperous future for investment banks, it also presents considerable challenges. Some banks face issues such as insufficient adherence to prudent examination requirements, lax establishment or implementation of internal control systems, and the need for improved information management. To enhance their sponsorship business, it is recommended that investment banks optimize talent training, internal management control, risk management, and intelligent information system construction. Cultivating professional sponsorship talents with comprehensive skills, reinforcing ethical standards, and conducting thorough reviews of IPO companies are crucial. Furthermore, optimizing the management system, establishing effective communication mechanisms, and enhancing risk management capabilities are essential steps. Leveraging advancements in computer technology, the construction of a secure and reliable intelligent information system is advised. As the reform progresses, investment banks should bolster international exchanges, cooperation, and professional competitiveness to evolve into reputable international brand banks.

The effects of board compensation on the voluntary establishment of an internal audit function

PurposeThis study examines the effects of board members’ compensation on the voluntary establishment of an internal audit function in publicly listed firms. While previous studies have identified some individual determinants related to the voluntary establishment of an internal audit function, the existing evidence on how board members’ compensation affects voluntary use of internal audit is, at best, ambiguous, scarce and incoherent.Design/methodology/approachBoard compensation is a central incentive instrument in the classic principal–agent relationship between the owners and board members. The theme is empirically examined by using data compiled from Finnish publicly listed companies for the period 2015 to 2018. Since the dependent variable of the study is a binary variable, the logistic regression method was chosen as the statistical method of the study.FindingsOur results unequivocally show that generous compensation of the board members increases the likelihood of establishing an internal audit function. Thus, we conclude that good corporate governance can be improved through generous compensation of board members.Originality/valueIdentifying the determinants of internal audit is vital to better understand the mechanisms that facilitate firms' improvement of internal control and risk management in terms of voluntarily adopting an internal audit function, and the implementation of good governance in general. Although numerous determinants of internal audit have been identified in previous studies, this study showed that one of the key determinants has so far been overlooked; namely, the remuneration of board members.

PERAN AUDIT INTERNAL, SISTEM PENGENDALIAN INTERNAL DAN KOMITMEN MANAJEMEN DALAM PENERAPAN GOOD CORPORATE GOVERNANCE

The aim of this research is to determine the extent of the role of internal audit, internal control systems and management commitment in implementing Good Corporate Governance in corporate governance. This research uses a literature study which refers to certain research and development carried out to collect and evaluate research related to a particular topic focus. This literature shows that 1) Internal Audit has an influence on GCG; 2) The Internal Control System influences GCG and 3) Management Commitment influences GCG.

Management of internal quality control in haemostasias at Hematology Laboratory Farhat Hached Hospital, Sousse

Management of internal quality control in haemostasias at Hematology Laboratory Farhat Hached Hospital, Sousse

Pertinencia de la implementación de un Sistema de Control Interno y Administración de Riesgos en las Entidades Públicas. Estudio de Caso del Proyecto de Remodelación de la Refinería de Cartagena (Reficar)

Internal Control, both nationally and internationally, has evolved and gained greater significance over the years. It has become a vital tool for achieving business objectives, ensuring the proper use of financial resources, and managing various types of risks. This document aims to highlight the importance of adequately implementing an Internal Control and Risk Management System within companies that manage state-owned assets or resources, using the Cartagena Refinery remodeling project as a case study. This project encountered various financial, operational, and technical shortcomings in its planning and execution phases, which ultimately led to the strengthening of the Internal Control System within the entity.

Audit Internal terhadap Kecurangan dan Penyimpangan Keuangan Pemerintah Daerah

This study examines the role of Internal Audit in strengthening local government financial resilience by integrating the concept of financial resilience from various sources. The research found that Internal Audit can contribute to responding to and overcoming financial stresses by improving the effectiveness of internal control, compliance, operational efficiency, and risk management. Internal Audit not only responds to financial pressures, but is also proactive in fraud prevention and financial risk management. The research method used a qualitative case study approach, the research involved 15 internal audit practitioners from various government institutions. The holistic involves in-depth interviews, document analysis, and direct observation to dive into the internal audit practices conducted by respondents. The results show that effective internal audit practices not only have an impact on fraud detection and prevention, but also play a crucial role in improving the integrity of financial reporting and accountability of local governments. However, some obstacles, such as budget, personnel, and technology constraints, may affect internal audit performance. Improvement recommendations include greater investment in technology training, better budget allocation, and increased number of personnel in internal audit.

The Influence of Internal Audit and Risk Control on Crisis Management in the Tourism Industry in Indonesia

This research investigates the complex interactions between Internal Audit, Risk Control, and Crisis Management in the dynamic landscape of Indonesia's tourism industry. Using a quantitative approach, this study employed Structural Equation Modeling with Partial Least Squares (SEM-PLS) to analyze survey data collected from stakeholders in the industry. Descriptive statistics showed positive perceptions of Internal Audit and Risk Control, with room for improvement in Crisis Management effectiveness. Measurement model assessment established reliability and construct validity, paving the way for robust structural model analysis. The results show that Internal Audit and Risk Control significantly and positively influence Crisis Management. Practical implications include customized strategies for optimal crisis resilience, while policy recommendations underscore the importance of a standardized framework. Despite its limitations, this study contributes valuable insights to the crisis resilience literature, offering a nuanced understanding of the dynamics of Indonesia's tourism sector.