The Cost of Internal Control and Corporate Governance in Latin America

2009 ◽  
Vol 20 (1-2) ◽  
pp. 133-147
Author(s):  
Jeffrey Michelman
Keyword(s):  
Corporate Governance ◽  
Latin America ◽  
Internal Control ◽  
The Cost

scholarly journals TRANSPARENCY OF INFORMATION – IMPORTANT MANAGEMENT INSTRUMENT IN ENSURING PERFORMANCE AND DEVELOPMENT OF CORPORATE GOVERNANCE

Akademos ◽  
2021 ◽  
Vol 60 (1) ◽  
pp. 68-76
Author(s):  
Aliona Birca ◽  
◽  
Liliana Lazari ◽  
Keyword(s):  
Corporate Governance ◽  
Performance Appraisal ◽  
Internal Control ◽  
Internal Audit ◽  
Decision Making Process ◽  
Appraisal System ◽  
Remuneration Policy ◽  
The Cost ◽  
Governance Risk

The degree of transparency of an entity is assessed according to the entity’s policies, control environment and access conditions of the various categories of stakeholders. Modern corporate governance determines the entity to adapt to the new market conditions, promoting a sustainable evolution in conditions of maximum transparency. In ensuring sustainable development, management must model its resources in such a way that the cost does not exceed the price and, at the same time, give credibility to stakeholders that the entity will reap long-term benefits. Performance means the most appropriate tools for translating financial and non-financial information into the entity’s successful language in a sustainable way. Promoting transparency in the decision-making process involves placing on the entity’s website information on the structure of corporate governance, risk management, internal audit and internal control, the company’s remuneration policy, the performance appraisal system and the budgetary system.

Board structure changes after accounting fraud: the case of Schneider Electric

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benedicte Millet-Reyes ◽  
Nancy Uddin
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Multinational Corporation ◽  
Business Case ◽  
Annual Reports ◽  
Board Structure ◽  
Control Mechanisms ◽  
Accounting Fraud ◽  
Content Type ◽  
The Impact

Theoretical basis The impact of corporate governance on internal controls and quality of financial disclosures. Research methodology Analysis of a real financial fraud event for a non-US multinational corporation. The case relies on accessing and analyzing annual reports for the firm, both before and after the fraud. Additional information on industry governance characteristics are provided in the case itself so that students can compare the firm to the industry. Case overview/synopsis This business case is centered on the analysis of Schneider Electric, a French multinational corporation, which had to restate their financial statements in 2011 because of accounting fraud. Following this event, Schneider undertook major changes in their board structure to improve internal control mechanisms. This pedagogical business case familiarizes students with international differences in ownership and board structure and emphasizes potential corporate governance changes after financial statement fraud. Complexity academic level Managerial finance, corporate finance, international finance, auditing. This case is more appropriate for upper-level undergraduate and graduate courses.

The Role of Accounting Mechanisms for Corporate Governance in Reducing Creative Accounting Practices in Telecommunications Sector Companies in Riyadh City: An Empirical Study: دور الآليات المحاسبية لحوكمة الشركات في الحد من ممارسات المحاسبة الإبداعية في شركات قطاع الاتصالات بمدينة الرياض: دراسة ميدانية

2020 ◽  
Vol 4 (15) ◽  
Author(s):  
Lamis Jameel Banasser, Maha Faisal Alsayegh
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Audit Committee ◽  
Internal Audit ◽  
Internal Auditors ◽  
External Auditors ◽  
Riyadh City ◽  
Creative Accounting ◽  
Telecommunications Sector

The study aimed to identify the role of accounting mechanisms for corporate governance in reducing creative accounting practices in telecommunications sector companies in Riyadh city. A descriptive analytical approach was followed to conduct the field study. Sample of the study consisted of members of the audit committee, internal auditors, accountants from the surveyed telecommunications’ sector companies, and the external auditors in the audit offices that specialized on auditing the examined sample of companies. Questionnaire was used as a data collection method. Results showed that activating the role of accounting mechanisms for corporate governance can greatly contribute in limiting creative accounting practices. As they are controlling mechanisms that capable of protecting companies, shareholders and stakeholders from any manipulation or misleading information in the financial statements. Further, internal audit plays a major role in limiting creative accounting practices by examining and evaluating the effectiveness of the internal control system. Furthermore, the independence and competence of the external auditor and his commitment to the rules of conduct and ethics of the profession contribute greatly in limiting creative accounting practices in the examined companies. The study recommended the necessity of holding specialized training courses for members of audit committees, internal auditors and external auditors on methods of detecting creative accounting practices to combat and reduce them.

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