Internal Control System Research Articles

VIDAUS KONTROLĖS SISTEMOS EFEKTYVUMO VERTINIMAS

The objective of this study is to evaluate the effectiveness of a company's internal control system. Evaluating the effectiveness of internal controls is essential for ensuring organizational transparency, reliability, and competitiveness. Continuous review and improvement of internal control systems are critical for enabling organizations to remain competitive and adapt to evolving business environments. An effective internal control system is founded on well-defined procedures, rules, and policies that support financial accountability, effective risk management, and regulatory compliance. The findings of the survey indicate that, while a majority of employees are familiar with the concept of internal control, only a minority actively engage in its implementation. Although the company has established clear roles and responsibilities, there is a notable gap in employees' understanding of risk management and accountability. Furthermore, while technological advancements have enhanced operational efficiency, some employees experience difficulties in accessing critical information. Regular assessments of the internal control system are conducted; however, employees are often not adequately informed about the outcomes of these assessments or the corrective measures implemented to address identified deficiencies. To improve the effectiveness of the internal control system, greater attention should be given to risk management practices and the communication of assessment results to employees.

Pengaruh Transparansi, Akuntabilitas, dan Sistem Pengendalian Internal Terhadap Kinerja Keuangan Pemerintah Daerah: Studi Kasus di Badan Pengelola Keuangan dan asset Daerah Kota Tidore Kepulauan

This study aims to analyze the influence of transparency, accountability, and internal control system on the financial performance of regional government. This study uses a quantitative and total sampling technique for data collection. The data analysis technique is descriptive quantitative analysis, utilizing t statistics, f statistics, and the coefficient of determination (adjusted R Square) though IBM SPSS 20 for windows. The result shoe that transparency positively and significantly influences the regional government’s financial performance. Similarly, accountability also positively and significantly influences the regional government’s financial performance. Furthermore, internal control systems positively and significantly influence the regional government’s financial performance as well. Simultaneously, transparency, accountability, and internal control system positively and significantly influence the regional government’s financial performance, with a determinant value of 60,7%, while the remaining 30,3% is due to other factors that are not examined in thid study.

Research on Risk Control and Internal Control in Corporate Accounting

As the market economy rapidly develops, new opportunities arise for modern business growth, yet the complexity of financial risks and internal control issues that enterprises face also increases. To maintain stable development in the fierce industry competition and effectively tackle various challenges, internal managers and related staff need to transform traditional thinking, strengthening risk control and internal controls within accounting. Risk control mainly focuses on risks related to the distortion of accounting information, misappropriation of funds, and tax compliance, whereas internal control focuses on solving problems such as inaccuracies in financial data processing, deficiencies in the internal control system, and lack of internal communication. However, there is a mutual influence between risk control and internal control, indicating that they complement each other. This paper deeply analyzes the existing problems in risk control and internal control in current corporate accounting, proposes improvement measures according to specific conditions, and enhances the levels of risk control and internal control in corporate accounting through methods such as improving personnel professionalism, standardizing accounting standards, and constructing a comprehensive internal control system, thereby providing a strong guarantee for the sustainable development of enterprises.

Cash Waqf Governance Practices: Case Study in Malaysian Tahfiz Institution

This paper delves into the intricacies of cash waqf governance practices in a Malaysian tahfiz institution, emphasizing the critical role of internal control systems, specifically in human resources, documentation, collection and distribution, and cash waqf reporting practices. Cash waqf is an Islamic endowment that plays a pivotal role in supporting the financial stability and operational sustainability of these religious educational institutions. Despite its importance, there remains a paucity of comprehensive studies exploring the internal control mechanisms governing waqf management in this context. This paper aims to examine in-depth the waqf internal control systems in tahfiz institutions in Malaysia, with a thematic analysis conducted in this study. This paper discusses the findings of the current waqf internal control system in one Malaysian tahfiz institution, focusing on human resources, documentation, collection and distribution, and cash waqf reporting practices. Based on the findings, several recommendations are made on how best practices for internal control in cash waqf management can be adopted in the future. The direction of future research includes empirical studies to assess the impact of internal control improvements on the operational and financial performance of tahfiz institutions.

Research on the Construction of Internal Control Systems in Public Hospitals Under the New Situation

With the continuous reform of China’s medical system, people’s health needs are also rising, so people have higher requirements for public medical services. At present, the economic business activities and asset management of public hospitals are becoming increasingly complicated, and the pressure of operation management is increasing. It has promoted the hospital to optimize the allocation of resource allocation and improve the operating efficiency. The management model has changed from extensive to refined, promoting the sustainable development of public hospitals. This article first starts with the development status and significance of the construction of the internal control system of the public hospital, and then sorts out the internal control of existing problems in the public hospital. The article proposes the content and efforts of the construction of an internal control system for existing problems. In the process, ideas for improvement were proposed. It is hoped that through the improvement of the management level of the hospital’s internal control system, in a changing market environment, it will better meet the needs of patients and contribute to the healthy and sustainable development of medical institutions.

Implementing Situational Crime Prevention Theory in the Matter of Financial fraudulent

Fraud and financial crime continue to pose significant challenges for private companies, making prevention efforts essential through the identification of their root causes. This study examines the relationship between situational crime prevention and financial fraud, with a focus on employee tenure as a moderating variable. An empirical research method was employed, with data collected from employees of PT Budi Jaya and its subsidiaries through questionnaires. A total of 60 valid responses were analyzed using WarpPLS. The findings reveal that situational crime prevention—measured through indicators such as minimal benefits, high risks, limited opportunities, and strict sanctions—has a significant negative impact on financial fraud. Additionally, the study demonstrates that employee tenure moderates the relationship between situational crime prevention measures and financial fraud. This research makes a theoretical contribution to situational crime prevention theory by incorporating the concept of rationalization, which fraud perpetrators often use to justify their actions. The study offers practical insights, suggesting that companies and regulators should implement robust internal control systems to minimize opportunities for fraud and establish clear, stringent rules and sanctions to deter fraudulent behavior.

The Role of Internal Audit in Maintaining Financial Accountability and Transparency in Government Agencies: Literature Review

This research aims to examine the role of internal audit in maintaining financial accountability and transparency in government agencies. Internal audit plays a crucial role in ensuring good governance, transparency in financial management, and fraud prevention. The study identifies key factors that support the role of internal audit, such as strengthening internal control systems, improving auditor competence, and implementing effective audits. Additionally, internal audit provides strategic recommendations to enhance accountability in the public sector. With strict oversight and a robust audit system, government agencies can prevent fraud and maximize budget efficiency. In conclusion, internal audit functions as both a supervisory tool and a strategy to strengthen financial governance and increase public trust.

Internal Control Analysis and Fraud Prevention Efforts in Public Sector Accounting

The study examines the role of internal control in preventing fraud within public sector accounting by safeguarding assets, ensuring accurate financial reporting, and promoting operational efficiency. Internal control systems are built on control environments, risk assessments, control activities, communication, and monitoring. Weak internal controls, such as inadequate segregation of duties and poor oversight, often lead to fraud in the public sector. Effective measures, including audits, anti-fraud policies, ethical behavior promotion, and the use of technology for monitoring, can mitigate these risks. Strengthening internal control systems enhances financial integrity, protects public resources, and supports efficient governance.

امكانية تحسين فعالية الرقابة الداخلية باستخدام اشارات خطر التدقيق للحد من حالات الغش والاحتيال: دراسة نظرية

Abstract The contemporary business environment is always fraught with risks, uncertainties and uncertainties, including errors and fraud, which can have serious financial consequences for an organization's reputation. Despite the implementation of internal control systems in these institutions, these risks still exist and recur as the business and operations are completed. This is where the research problem of ineffectiveness arisesInternal controls in mitigating the occurrence of errors and cases of fraud within institutions. This motivates auditors to take a proactive approach to identifying and addressing weaknesses. This approach is to use the potential of audit risk signals as a means of enhancing the effectiveness of internal control measures. This study aimed to increase the auditor's efficiency in detecting financial fraud by studying and analyzing the impact of using audit risk signals in improving the effectiveness of internal control, and evaluating internal control systems and the extent of reliance on it. The study relied on the descriptive approach through the use of theses, letters, periodicals, books and websites that dealt with the subject of the study, especially those related to the topics of audit risk signals and internal control. The study concluded several conclusions, the most important of which are: that the availability and use of audit risk signals by the auditor helps to achieve savings in the time and cost allocated to the audit process, and to direct attention to citizens who have the possibility of fraud, which achieves the effectiveness of the audit process in general, and the high efficiency of the audit in particular, there is a lack of access to sufficient and reliable information before starting the audit, and this indicates that there are obstacles that limit the importance of good communication with employees and the collection of information necessary to understand the situation accurately. The study also included several recommendations, the most important of which are: the need for auditors to be distinguished by the ability to analyze the causes and search for the real roots of the problem instead of relying only on apparent signals. Auditors should adhere to strong and transparent audit practices such as audit risk signals to ensure the correctness and reliability of employees' transactions, management, assets and financial reports in order to improve the effectiveness of internal control.

Hexagon theory perspective on financial statement fraud in Indonesian ministries

This study aims to examine and analyze financial statement fraud from the perspective of the hexagon theory using secondary data. The research sample was selected through purposive sampling, consisting of Ministries and Agencies in Indonesia. The research method employing the OLS (ordinary least squares) approach involves testing the model’s suitability through the F-statistical test, evaluating the coefficient of determination by examining, and conducting hypothesis testing using EViews. The findings of this study suggest that pressure and sscapability do not significantly influence financial reporting fraud. In contrast, opportunity, rationalization, arrogance, and collusion positively and significantly impact financial fraud reports. Implementing a whistleblowing system is crucial for ensuring that e-procurement encompasses all elements of government organizations, serving as a means of transparency and accountability to mitigate the occurrence of fraudulent financial reports within government entities, particularly in Ministries and Agencies in Indonesia. The financial audit opinion is not intended to detect fraud but to assess conformity with government accounting standards, the extent of disclosure, compliance with legislation, and the effectiveness of the government's internal control system. This can encourage institutions in other countries to strengthen the financial security of their organizations.

FAKTOR - FAKTOR YANG MEMPENGARUHI KUALITAS SISTEM INFORMASI AKUNTANSI

The purpose of the research was to identify and analyze the factors that effect on the Quality of Accounting Information System at PT. Madhani Talatah Nusantara Muara Enim, South Sumatra, using primary data. The research uses interviews and questionnaires as data collection techniques. The population of the research was 46 respondents with the sampling technique is using the saturated sampling. The data analysis method used in this study is quantitative analysis with descriptive statistical techniques and inferential statistics. The inferential statistics techniques consists of consisting of classical assumption tests, multiple regression analysis, coefficient of determination, and hypothesis testing designs, assisted by the Statistical Product and Service Solutions (SPSS) software. The results of this research indicate that the factors influencing the quality of the accounting information system include internal control system, user competence, and information technology.

APIP's Role in SPIP to Support Defense Force Development

Law No. 1 of 2004 mandates accountable and transparent management of state finances in Indonesia. To ensure compliance, efficiency, and good governance, the effective implementation of APIP (Aparat Pengawasan Intern Pemerintah or Internal Government Auditors) is crucial. Enhancing the role of APIP is necessary to address the low quality of state financial management, ensure accountability, and support bureaucratic reform for transparent and efficient governance. Purpose: This study aims to analyze the role of APIP within the SPIP (Sistem Pengendalian Intern Pemerintah or Government Internal Control System) framework to support the development of Indonesia's defense forces. The research employs a qualitative descriptive method to explore the role and impact of APIP in state financial management and defense force development. Results: The study reveals a significant improvement in the capabilities of APIP over recent years. In 2015, 85.23% of APIP units were only at capability level 1, which indicates basic operations without full adherence to professional standards. By 2022, 54.74% of APIP units had reached capability levels above 3, indicating compliance with professional standards, enhanced risk management, and improved organizational governance. This increase in capability supports more robust oversight, particularly in the Ministry of Defense and the Indonesian Armed Forces, where APIP plays a vital role in overseeing budget management, the modernization of defense equipment, and the improvement of human resources. Conclusion: While the improvement in APIP capabilities enhances effectiveness, the assessment of efficiency in state financial management remains underemphasized. Addressing this gap is essential for the country's financial reforms aimed at improving public services and ensuring fiscal sustainability. APIP not only maintains integrity, transparency, and accountability but also supports the development of defense forces through comprehensive financial, management, and social audits. The focus on both efficiency and effectiveness is critical to strengthening the relevance of these findings in achieving sustainable governance and defense objectives.

The impact of external auditing on financial information users: field study

This research aims to study the extent to which external auditing affects realizing the objectives of financial information users. This was done through a surveying of the opinions of a sample of the study community in the West Algerian region using a questionnaire. The data was analyzed using the Statistical Package for the Social Sciences (SPSS26), for descriptive analysis of the Sample individuals as well as a simple linear regression (SLR) model to test hypotheses. The results of the study concluded that there is a positive impact of the role of external auditing in improving the quality of the information system and activating the internal control system aimed at financial information users. This study recommends the essential for external auditors to comply with international auditing standards and quality requirements to improve the practice of the auditing profession and boost it in the future to attain the above-mentioned objectives.

Analysis of Internal Control Over Merchandise Inventory at Suara Elektro Manado Store

Internal control is a process in an organization to check the accuracy, precision, and effectiveness and efficiency of a business process to achieve certain goals. This study aims to analyze the effectiveness of the implementation of internal control over merchandise inventory at Toko Suara Elektro Manado. The research method used in this thesis research is a descriptive method whose purpose is to analyze each data collected and then draw a conclusion. This research approach uses a qualitative research approach with a descriptive approach. The research results obtained by Toko Suara Elektro show a high dedication in managing inventory accurately and efficiently through the implementation of an integrated internal control system. This approach ensures effective risk control, optimal operational performance, and the store's ability to face challenges and changes responsively and adaptively

Measuring The Information Content Of Accounting Profits In The Iraqi Banking Sector For Banks Listed On The Iraqi Stock Exchange

The study aims to measure the information content of the accounting profits of banks listed on the Iraqi Stock Exchange, as the sample included 10 banks for a period of 4 years (2016-2019). The study concluded that banks that have a high explanatory ability reflect greater stability in the stock price, which would reassure Investors and stakeholders, thus reducing dispersion and fluctuations in the stock price, while banks with weak explanatory power show higher volatility in the stock price, which indicates additional risks that increase the fluctuation in investor returns, and the influencing factors have a major role in enhancing or reducing the information content of profits. Which explains the discrepancy between banks, and the study recommended the need to enhance the quality of financial disclosure, especially banks with weak explanatory capacity, increase transparency, and work to enhance the informational content of profits, which in turn increases investors’ confidence in accounting information, as well as encouraging banks to strengthen their internal control systems, which helps in Reducing accounting errors and the accuracy of declared profits, thus stabilizing the share price. Strengthening the administrative capabilities of executive managers contributes significantly to enhancing the informational content of profits by allocating the company’s available resources efficiently and effectively.

Pengaruh Kompetensi SDM, SPIP, Dan Pemanfaatan TI Terhadap Kualitas Laporan Keuangan Pemerintah Daerah Dengan Komitmen Organisasi Sebagai Variabel Moderating Pada OPD Kota Tanjung Balai

The aim of this research is to determine and analyze the factors that influence the quality of financial reports in the Tanjung Balai City Government. The influencing factors are human resource competency, internal control systems, and use of information technology, with organizational commitment as the moderating variable. The type of research in this research is quantitative research using primary data and data collection techniques through distributing questionnaires to the Regional Apparatus Organizations of Tanjung Balai City, North Sumatra, Indonesia. The sampling method is using the census method, so that the entire population is used as the research sample. The population of this study was 34 OPDs, each consisting of 3 respondents with a total of 102 respondents. The data was processed using the SEM method with the help of the Smart PLS analysis tool. The results of this research prove that human resource competency influences the quality of the Tanjung Balai City Government's financial reports, the government's internal control system influences the quality of the Tanjung Balai City Government's financial reports, the use of information technology influences the quality of the Tanjung Balai City Government's financial reports. Organizational commitment can moderate the respective influences of human resource competence, internal control systems, and the use of information technology on the quality of the Tanjung Balai City regional government's financial reports.

Accounting and analytical support of internal control of receivables at construction organizations

Subject. This article deals with the issues of improving the internal control of accounts receivable of economic entities of the construction industry. Objectives. The article aims to develop a detailed methodology for internal control of accounts receivable, including systematized procedures structured by control stage, based on the automation of accounting processes. Methods. For the study, we used the case, statistical, and analytical research methods, as well as special methodological techniques used in control and audit practice. Results. The article finds that with the ineffective activities of the internal control service, there is a delay in the receipt of funds from buyers, as a result of which the pace of construction and installation work slows down, and the probability of the risk of untimely commissioning of the facility increases. The article identifies the main reasons hindering the development of the construction industry, and offers the author-developed methodology for controlling settlements with counterparties, which provides for the step-by-step implementation of the formulated procedures based on the automation of accounting functions. Conclusions and Relevance. The introduction of escrow accounts and the transformation of accounting for settlements with participants in shared-equity construction are the main steps towards improving transparency and reliability in the field of shared-equity construction and necessitate the formation of an effective internal control system, taking into account the industry aspect, which makes it possible to minimize the risk of late repayment of receivables. The results of the study can be used by economic entities of the construction industry as a method of internal control of accounts receivable.

Enhancing financial reporting quality in village-owned enterprises: The role of organizational competencies

The quality of financial reporting in village-owned enterprises (VOEs) is critical for ensuring transparency and accountability in local governance. This study explores the impact of education level, training programs, work experience, internal control systems, and information technology on the quality of financial reports in VOEs. The objective is to determine how these factors influence financial reporting quality to support effective local governance. The paper involves a sample of 120 VOE managers and employs quantitative analysis to examine the relationships between these factors and the quality of financial reporting in Indonesia. The results indicate that higher education levels, comprehensive training programs, and extensive work experience positively affect the quality of financial reporting. Specifically, the study finds that educated personnel and well-structured training programs enhance the accuracy and reliability of financial reporting. In contrast, the anticipated positive impact of IT utilization on financial reporting quality was not observed, suggesting that issues related to IT infrastructure and integration may limit its effectiveness. Additionally, robust internal control systems significantly improve the quality of financial reports. Overall, the analysis emphasizes the importance of investing in education, training, and internal controls to enhance financial reporting quality in VOEs. The findings highlight the need for further research into the challenges of IT integration to fully harness its benefits for financial transparency.

Evaluation of Learning Management Standards to Improve Higher Education Quality Standards Through Internal Quality Audits

Independent evaluation is required through an internal quality control system through internal quality audit activities. This study evaluated the achievement of learning management standards, inhibiting factors, and recommendations for improving education quality standards at Palembang Polytechnic. This type of qualitative research uses observation methods, structured interviews, and literature studies. The research instrument is the author directly involved in the research. The informants in this study were determined using a purposive technique: three research informants. The study’s results obtained data on implementing internal quality audits on learning management standards that have not been implemented. An effective internal quality management model is needed as a platform or application that supports collecting, storing, and managing data and information on website-based internal quality management system services to support fast, precise, and efficient internal quality management system integration.

EFEKTIVITAS SISTEM PENGENDALIAN INTERNAL TERHADAP PERSEDIAAN BARANG DAGANG DI CV MM ACING JAYA TUATUNU PANGKALPINANG

This thesis, written and compiled by Jessintha Sherly Tabita with Student Identification Number 540200024, is titled “Effectiveness of the Internal Control System on Merchandise Inventory at CV MM Acing Jaya Pangkalpinang." The study aims to understand the internal control system over merchandise inventory at MM Acing Jaya Pangkalpinang. Data collection techniques included observation, interviews, and documentation. The data analysis technique used was descriptive-qualitative. The results show that the internal control system over merchandise inventory at MM Acing Jaya Pangkalpinang is largely in accordance with the theoretical standards of COSO Most of the components of the control environment are in place, but they have not been effectively implemented due to the absence of documents regulating the control environment. The control activities are also in place but not effective, as there are still frauds outside the store's supervision committed by drivers. Information and communication are in place but not yet effective, as some documents are still difficult to locate when needed.