Establishing an Efficient Internal Control Structure

2001 ◽  
pp. 185-209
Author(s):  
Dimitris N. Chorafas
Keyword(s):  
Internal Control ◽  
Control Structure

scholarly journals Assessing The Internal Control Structure For Income Tax Account Balances And Their Related Disclosures

2019 ◽  
Vol 23 (1) ◽  
pp. 1-6
Author(s):  
Jeff Decker ◽  
Richard Ray ◽  
Tim Kizirian
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Income Tax ◽  
Control Structure ◽  
Preliminary Assessment

We provide practical considerations to guide auditors in performing a preliminary assessment of the design of the auditee’s control structure related to income tax account balances and their related disclosures which should contribute to more reliable financial reporting. While our process is specifically designed for use in performing an integrated audit under PCAOB Auditing Standard No. 5 (PCAOB, 2007), the internal control objectives and related control activities we present are also useful in performing other types of audits or limited engagements.

scholarly journals PENGARUH STRUKTUR PENGENDALIAN INTERNAL, TATA KELOLA DAN ANALISIS RISIKO KEUANGAN TERHADAP EFEKTIVITAS PENYALURAN KREDIT PADA KOPERASI SIMPAN PINJAM DI KABUPATEN ACEH BESAR

2020 ◽  
Vol 5 (4) ◽  
pp. 551-559
Author(s):  
Suci Hariyati ◽  
Fazli Syam BZ
Keyword(s):  
Risk Analysis ◽  
Internal Control ◽  
Financial Risk ◽  
Sampling Method ◽  
Control Structure ◽  
Quantitative Approach ◽  
Primary Data ◽  
Control Structures ◽  
Purposive Sampling ◽  
Savings And Loan

The purpose of this study was to determine the effect of internal control structures, governance, and financial risk analysis on the effectiveness of credit distribution to savings and loan cooperatives in Aceh Besar District. The data used in this study are primary data using a quantitative approach. This study uses purposive sampling method in determining the sample, and there are 10 cooperatives that become samples that meet the criteria.Based on the research results, it shows that the structure of internal control, governance, and financial risk analysis together has a significant effect on the effectiveness of lending. The magnitude of the influence of internal control, governance and financial risk analysis on the effectiveness of lending was 63.8%. The internal control structure has a significant effect on the effectiveness of lending. Governance does not have a significant effect on the effectiveness of lending. Financial risk analysis has no significant effect on the effectiveness of lending

scholarly journals ANALYSIS OF APPLICATION OF ACCOUNTING INFORMATION SYSTEM IN PROCESSING SALES TRANSACTION AT PT. DAIHATSU ASTRA MOTOR SISINGAMANGARAJA

2021 ◽  
Vol 1 (2) ◽  
pp. 361-364
Author(s):  
Budiman Rosyadi Nasution
Keyword(s):  
Information System ◽  
Internal Control ◽  
Quantitative Methods ◽  
Control Structure ◽  
Accounting Information ◽  
Secondary Data ◽  
Spare Parts ◽  
Financial Ratios ◽  
Primary Data ◽  
Accounting Information System

This study aims to examine the sales accounting information system implemented by PT Daihatsu Astra Motor Sisingamangaraja. Then it can be identified whether the information system has been implemented according to the right internal control structure or not and to determine the company's development through financial ratios that are limited to the sales department. This type of research is a case study, which contains exposure or relevant data from the results of research on the object. Qualitative methods are used in flowchart analysis and quantitative methods are used to calculate financial ratios that are limited to sales. Primary data is data that comes from the original source and is collected specifically for the purposes of the research being conducted. Secondary data is data produced by companies such as financial statements and accounting records. Data collection methods are interviews and direct observation. The results of this study are overall PT Daihatsu Astra Motor Sisingamangaraja has carried out car sales activities, spare parts / spare parts and service services with an accounting information system in accordance with the components of the internal control structure model. The majority of transactions that occurred at PT Daihatsu Astra Motor Sisingamangaraja actually decreased, this was due to the author's limitations in obtaining related financial statement information. Thus, it can be concluded that the accounting information system applied by the company is mostly appropriate and effective because it is appropriate so that it can support internal sales control.

scholarly journals PENGARUH KUALITAS AUDIT TERHADAP KUALITAS LAPORAN KEUANGAN PEMERINTAH DAERAH

2017 ◽  
Vol 21 (3) ◽  
pp. 461
Author(s):  
Moermahadi Soerja Djanegara
Keyword(s):  
Control Systems ◽  
Internal Control ◽  
Audit Quality ◽  
Control Structure ◽  
Least Square Method ◽  
Least Square ◽  
Audit Result ◽  
Budget Execution

The purpose of this study is to determine the effect of audit quality on the quality of local government financial statements (LKPD). The quality of the audit is measured by the proxy level of completion or follow-up on the recommendation of the audit result (TLRHP), covering three factors namely the problem of weaknesses of accounting and reporting control systems, budget execution control, internal control structure, and non-compliance factor to the provisions and laws. While the quality of LKPD is measured by the proxy of audit opinion. The study sample used LKPD data from 2011-2015 provinces, cities and districts in Java and Sumatera region covering 279 LKPD (51%) of LKPD population throughout Indonesia. The result of analysis with regression method (least square method) shows that follow-up improvement over weakness of accounting and reporting control, budget execution control, internal control structure, and compliance to regulation and legislation have positive effect to LKPD quality. The greatest influence is shown by improvements over the weaknesses of accounting and reporting control systems. The implications of the research results are to improve the quality of LKPD, monitoring the follow-up improvement on the recommendations of LKPD audit results by BPK auditors should be intensified, with priority monitoring on TLRHP issues of weaknesses of accounting and reporting control systems.

scholarly journals 2002 Sarbanes-Oxley Act: Privately-Held Companies Implementation Issues

2011 ◽  
Vol 22 (3) ◽  
Author(s):  
Ronald O. Reed ◽  
Thomas Buchman ◽  
Richard Wobbekind
Keyword(s):  
Internal Control ◽  
Control Structure ◽  
Cost Effective ◽  
Financial Statements ◽  
Font Size ◽  
Regulatory Governance ◽  
Sarbanes Oxley ◽  
The Cost ◽  
Code Of Professional Conduct ◽  
Privately Held

<p class="MsoNormal" style="text-align: justify; margin: 0in 31.2pt 0pt 0.5in;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">Our research was designed to for two purposes: (1) if the provisions of SOX have merit on their own or whether it is just a mandate by legislators, and (2) to determine if privately-held companies currently not required to implement SOX have done so.<span style="mso-spacerun: yes;">&nbsp; </span>In summary, the respondents, who were experienced financial executives with knowledge of SOX and other regulatory governance policies see SOX as an influential piece of legislation.<span style="mso-spacerun: yes;">&nbsp; </span>They see some positive benefits to their organizations with implementation of some of the provisions of the act, such as better financing options, better credit opportunities, and opportunities to take the company public.<span style="mso-spacerun: yes;">&nbsp; </span>Many of financial executives indicated their organizations are implementing provisions in areas where it cost effective as well making &ldquo;good&rdquo; business sense.<span style="mso-spacerun: yes;">&nbsp; </span>For example, it is cost effective to implement a formal code of professional conduct for the executives and it does make good business sense.<span style="mso-spacerun: yes;">&nbsp; </span>However they are not asking their CEOs or CFOs to certify the accuracy of financial statements nor to the internal control structure.<span style="mso-spacerun: yes;">&nbsp; </span>Many of the financial managers indicated they are not implementing SOX on a full scale basis because of the cost, time, and that the lack of benefits derived from implementation.</span></span></p>

scholarly journals Internal Control And Accounting Systems Documentation: A Case Study

2012 ◽  
Vol 8 (3) ◽  
pp. 279
Author(s):  
Jeffrey E. Michelman ◽  
Bobby E. Waldrup ◽  
Melanie R. Gillman
Keyword(s):  
Organizational Behavior ◽  
Internal Control ◽  
Control Structure ◽  
Internal Audit ◽  
Accounting Profession ◽  
Accounting Systems ◽  
Sarbanes Oxley ◽  
Regulated Firms ◽  
Student Intern

This case chronicles the experiences of a student intern as she assists in the transformation of a transportation companys internal audit department in a process to go public and come into compliance with the provisions of the Sarbanes-Oxley Act. It is designed to give students an in-the-trenches viewpoint of the sweeping effects that SOX has on the internal control structure of regulated firms. The topics of co-sourcing, documentation, re-performance, and mentoring are weaved into the story as examples of how the accounting profession affects organizational behavior and culture. The case is appropriate for undergraduate and graduate auditing, systems or internal audit classes. Moreover, the case would serve as an excellent aid for faculty and students involved in accounting internships.

scholarly journals PENGEMBANGAN MODEL STRUKTUR PENGENDALIAN INTERN BERBASIS MODAL SOSIAL UNTUK MENCEGAH KEBANGKRUTAN LEMBAGA PERKREDITAN DESA (LPD) DI BALI

2016 ◽  
Vol 5 (1) ◽  
Author(s):  
Anantawikrama Tungga Atmadja ◽  
Nyoman Ari Surya Darmawan ◽  
Nyoman Trisna Herawati
Keyword(s):  
Social Capital ◽  
Internal Control ◽  
Control Structure ◽  
Social Institutions ◽  
Formal Organization ◽  
The Social ◽  
Business Function ◽  
Three Stages ◽  
Operational Activities ◽  
The Relationship

Abstrak Sebagai lembaga bentukan desa pakraman, selain memiliki fungsi bisnis LPD juga memiliki fungsi sosial untuk memajukan perekonomian desa pakraman beserta seluruh krama-nya. Fungsinya yang penting ini mengakibatkan LPD harus dihindarkan dari permasalahan keuangan yang dapat berujung pada kebangkrutan. Berbeda dengan lembaga keuangan lainnya selain mempergunakan tata aturan organisasi formal, LPD mempergunakan modal sosial yang dimiliki oleh desa pakraman sebagai basis aktivitas operasionalnya. Untuk itu, penelitian ini bertujuan untuk membangun model srtuktur pengendalian intern berbasis modal sosial yang dapat diterapkan pada seluruh LPD di Bali yang dibagi menjadi tiga tahapan penelitian. Pada tahapan pertama ini akan diinventarisir modal sosial apa yang dapat dimanfaatkan untuk memperkuat struktur pengendalian LPD dengan mengetahui, 1) alasan desa pakraman membentuk LPD, 2) hubungan antar para pemangku kepentingan di LPD, dan 3) bentuk penyertaan modal sosial dalam struktur pengendalian intern LPD. Penelitian ini dilakukan dengan metode penelitian kualitatif pada 18 LPD di seluruh kabupaten dan kota madya di Bali. Data dikumpulkan dengan wawancara, observasi partisipasi, dan studi dokumentasi yang selanjutnya dianalisis berdasarkan kerangka teoritik yang telah disusun sebelumnya. Hasil penelitian menujukkan bahwa 1) LPD didirikan berdasarkan instruksi penguasa supra desa sekaligus merupakan kebutuhan krama desa pakraman, 2) pola hubungan antar stakeholder berbasis modal sosial yang dilandasi ideologi Tri Hita Karana, serta 3) modal sosial yang berperan dalam aktivitas operasional sekaligus pelaksanaan struktur pengendalian intern LPD adalah trust, jaringan sosial, dan pranata sosial. . Kata kunci: Lembaga Perkreditan Desa, Model Struktur Pengendalian Intern, Modal Sosial, Tri Hita Karana, Kebangkrutan Abstract As an institution formed by Desa Pakraman, besides having a business function LPD also has a social function to promote the economy of Desa Pakraman and its members. This important functions derive LPD should be avoided from the financial problems that can lead to bankruptcy. Compared to other financial institutions, LPD is ruled by using the formal organization and importantly social capital belonged to Desa Pakraman as the basis of operational activities. Therefore, this study aims to develop a model of internal control structure based on social capital that can be applied to the entire LPD in Bali. This study is divided into three stages of research. In the first stage it will be inventoried what social capital can be used to strengthen the structures of LPD’s control by knowing: 1) the reason of Desa Pakraman in building an LPD, 2) the relationship among the stakeholders in LPD, and 3) form of social capital share in the LPD’s internal control structure. This research was conducted using qualitative method at 18 LPDs in all regencies in Bali. Data were collected through interviews, participatory observation and documentation study. It was then analyzed based on the theoretical framework that has been developed previously. The results showed that 1) LPD was established based on instruction of the ruler of the supra-villages as well as the need of Desa Pakraman, 2) the pattern of relationships among stakeholders was based on social capital with the ideology of Tri Hita Karana, and 3) the social capital involved in operational activities and the implementation of internal control structure of LPD is trust, social networks, and social institutions. Keywords: Lembaga Perkreditan Desa (LPD), model of internal control structure, social capital, Tri Hita Karana, bankruptcy.

scholarly journals Role of Effective Internal Control Structure in Achievement of Targeted Success in Businesses

2018 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Hasan Turedi ◽  
Duygu Celayir
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Control Structure ◽  
Corporate Management ◽  
Control Structures ◽  
Economic Relations ◽  
Business Environments ◽  
Management Functions ◽  
The Impact ◽  
The Way

Due to economic relations evolving over time, technology and changing business environments, the way in which one of the management functions, “control”, is executed has undergone a number of changes. Accordingly, the management of a business has become unable to control operations directly, making it a necessity for businesses to obtain timely and reliable data for a number of purposes, including protecting assets, and eliminating or minimizing errors and frauds. Internal control structures, formed within the business to serve this purpose, have become more relevant in terms of protecting business assets, identifying the way operations are executed and ensuring execution of operations at the desired level of efficiency. Internal control is defined as a structure in businesses which is directed by board of directors, managers and employees, aims to ensure effectiveness and efficiency of operations, reliability of the financial reporting system, and compliance with laws, and is designed to provide reasonable assurance in these aims. Depending on the position they assume, officials at every level have responsibilities in the context of ensuring effective and efficient execution of the internal control structure in businesses, and accordingly, of corporate management, and attaining expected goals. This study will examine development of an effective internal control structure in terms of attaining expected success by businesses and the impact thereof on the business.

Inversion-Based Control of a Proton Exchange Membrane Fuel Cell System Using Energetic Macroscopic Representation

2009 ◽  
Vol 6 (2) ◽  
Author(s):  
Daniela Chrenko ◽  
Marie-Cécile Péra ◽  
Daniel Hissel ◽  
Alain Bouscayrol
Keyword(s):  
Fuel Cell ◽  
Internal Control ◽  
Proton Exchange Membrane ◽  
Control Structure ◽  
Cell System ◽  
Proton Exchange ◽  
Fuel Cell System ◽  
Structure Development ◽  
Air Supply ◽  
Graphic Modeling

This paper introduces a fuel cell system model based on energetic macroscopic representation (EMR). EMR is a causal graphic modeling approach to describe complex multidomain systems, which facilitates inversion-based control structure development called maximum control structure (MCS). The EMR model is derived for a commercially available fuel cell system and corresponds well with experimental results. An inversion-based control is proposed for the air supply subsystem. The control corresponds well with the unknown internal control. The application of EMR and MCS marks a promising approach: Control structure development based on experience is replaced by a systematic approach. This is especially meaningful for complex multidomain systems such as fuel cell systems.

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