Changes in the Strategic Internal Control of Companies under Crisis Pressure

2021 ◽  
Vol 15 (37) ◽  
Author(s):  
Lyudmila Mihaylova ◽  
Emil Papazov
Keyword(s):  
Internal Control ◽  
Environmental Sustainability ◽  
Business Processes ◽  
Manufacturing Sector ◽  
Research Question ◽  
Control Environment ◽  
Competitive Advantages ◽  
Online Sales ◽  
Strategic Model ◽  
The Impact

Purpose of the article: The article aims at presenting and analysing key changes in the strategic internal control of companies under the pressure of crisis phenomena. The research question is how to adapt the strategic internal control to an evolving crisis through inclusion of control environmental sustainability measures, and strategic model adaptation.Methodology: A qualitative approach has been applied along with the research of larger companies from the brewery sector and small-and medium sized enterprises from the knitted fabrics manufacturing sector in Bulgaria. The study has also taken into consideration some companies’ strategic documents, as well as interviews with companies’ managers. The gathered information has been systematized, compared and evaluated with the help of the “Relative (Competitive) Advantage Matrix” model.Scientific aim: Understanding the impact of changes in strategic internal control on management under the pressure of crisis phenomena.Findings: The analysing of the quasi-control environment and competitive advantages is an important strategic management issue during crises. Competitive advantages derive mainly from the characteristics of the product (or service) that make it better than the products (or services) of competitors and they are associated with changes in the strategic internal control of companies under the pressure of hard times.Conclusions: Strategic internal control has to be adapted to the crisis situation through control environmental sustainability measures, strategic model adaptation and selected competitive advantages. Business processes are changing as a result of crisis times, then the control environment, risk assessments and competitive advantages need to be more detailed and analysed in different aspects. At the same time, the strategic internal control in hard times faces unexpected results, such as a drastic reduction in the incomes, a decrease in retail sales or a drastic increase in online sales. Using the collected information, comparisons can be made to better outline similarities and differences that will point out ways for improvement. This information should be brought to the attention of the personnel of the companies. The change in the activities should not be delayed in time, since information quickly becomes out-dated.

Who's in Control of the Ark? A Study of Internal Controls in Operating and Auditing A Small Preschool

2019 ◽  
Vol 34 (2) ◽  
pp. 23-39 ◽  
Author(s):  
Elizabeth V. Grace ◽  
Ashley Davis
Keyword(s):  
Internal Control ◽  
Business Processes ◽  
Practical Experience ◽  
Auditor Independence ◽  
Internal Controls ◽  
Control Environment ◽  
For Profit ◽  
Not For Profit ◽  
Analytical Thinking ◽  
Financial Transactions

ABSTRACT This instructional case encourages analytical thinking about internal controls in both the operations and audit of a small, not-for-profit organization. Students examine a control environment characterized by unauthorized expenditures, lack of documentation, and missing documents. Using the COSO (2013) framework, students demonstrate understanding of business processes as they identify internal control risks and deficiencies, and recommend control improvements. Auditing students additionally apply management assertions about financial transactions and assess auditor independence. Students gain practical experience in developing flowcharts of accounting processes and writing a management letter for a familiar organization: a preschool.

scholarly journals Wellness Tourism—New Challenges and Opportunities for Tourism in Salou

2021 ◽  
Vol 13 (15) ◽  
pp. 8246
Author(s):  
Marta Gemma Nel-lo Andreu ◽  
Alba Font-Barnet ◽  
Marc Espasa Roca
Keyword(s):  
Environmental Sustainability ◽  
Seasonal Adjustment ◽  
Competitive Advantages ◽  
Strategic Renewal ◽  
Challenges And Opportunities ◽  
The Face ◽  
History Of ◽  
Wellness Tourism ◽  
Fundamental Value ◽  
The Impact

Following a long history of using various strategies and policies for diversification and seasonal adjustment in the face of the challenges of achieving economic, social, and environmental sustainability, sun and beach destinations should also consider targeting the wellness tourism market as a post pandemic opportunity and long-term solution. Salou is a mature sun and beach destination in the Mediterranean, but one which, for some time, has had an increasing commitment to family and sports tourism as a result of a strategic renewal process. Now, with the impact of the coronavirus pandemic, the destination management organization is considering the evolution of the model, the internalization of sustainability as a fundamental value, and the impact of different markets. In this study, we examined the challenges the Salou Tourist Board has faced during the development of a post pandemic model for sustainable tourism and what strategies it has adopted in response. We also considered the opportunities and competitive advantages that Salou has in the field of wellness tourism. The results obtained should encourage the continuation of work that promotes the environmental axis of sustainability and adds value to the natural resources on which it depends, including the sea and the landscape, while maintaining the environmental quality of the resources.

scholarly journals The mechanism for increasing the efficiency of business processing of industrial enterprises on the basis of antocrossing

2018 ◽  
Vol 11 (1) ◽  
pp. 37-43
Author(s):  
H. G.W. Alkarawy
Keyword(s):  
Economic Activity ◽  
Business Processes ◽  
High Efficiency ◽  
Industrial Process ◽  
Industrial Enterprise ◽  
Competitive Advantages ◽  
Management Tools ◽  
Industrial Enterprises ◽  
Business Entities ◽  
The Impact

Studying the problems associated with dynamism and the volatility of the economic environment require the constant development of the enterprise is a complex and multifaceted phenomenon, marked by many unresolved problems. The choice of other business processes for outsourcing is an important problem, from the decision of which depends the efficiency of the development of industrial enterprises. They require constant development and improvement of the organization of the enterprise, development of new, progressive forms and management methods that can minimize and neutralize the impact of negative factors on the indicators of their development. Especially it concerns the industrial enterprises. The problems of low competitiveness of industrial enterprises, the limited resources necessary for their effective functioning, and the low level of human resources require changes in economic activity through effective management methods, high efficiency of business processes and increase the competitiveness of business entities, which should become the basis for the formation of a new model of economic activity of industrial enterprises on the basis of the constructed model for choosing the optimal outsourcing, providing to increase the efficiency of the industrial process of an industrial enterprise. The development of modern economy is based on the effectiveness of business processes, therefore research of business processes of industrial enterprises, are based on it, deserves special attention. Accelerating the pace of modernization, the speed of creating new knowledge and competition need not just the use of more advanced technical and technological solutions, but the introduction of management methods based on the model of choice of optimal outsourcing. Therefore, business processes in industrial enterprises are closely related to the introduction of new methods, technologies and management tools aimed at adapting business entities to the changing conditions of the external environment and the full realization of their production and potentials, and those that allow an industrial enterprise to obtain other competitive advantages.

scholarly journals Cost-Volume-Profit Modeling: A Strategic and Financial Approach

2011 ◽  
Vol 5 (6) ◽  
pp. 35
Author(s):  
Joseph M. Larkin
Keyword(s):  
Internal Control ◽  
Business Processes ◽  
Internal Controls ◽  
Control Environment ◽  
Business Decisions ◽  
Youth Soccer ◽  
Profit Analysis

Set in the context of a youth soccer tournament, this case study addresses critical accounting and business topics such as cost-volume-profit analysis, identification of business processes and internal controls and the internal control environment. Students are expected to make business decisions based upon financial and strategic analyses. In addition, the case requires students to identify weaknesses with internal controls and most importantly, make suggestions to strengthen the control environment.

scholarly journals Integrating Process Mapping Into The AIS Students Toolset

2001 ◽  
Vol 5 (4) ◽  
pp. 61-68 ◽  
Author(s):  
Marianne Bradford ◽  
Doug Roberts ◽  
Gordon Stroupe
Keyword(s):  
Internal Control ◽  
Process Management ◽  
Business Processes ◽  
Data Flow ◽  
Accounting Students ◽  
Process Mapping ◽  
Process Maps ◽  
Career Opportunities ◽  
Impact Of Technology ◽  
The Impact

Over the past decade, the impact of technology on accounting practice has been profound. The professional landscape is rapidly changing, and todays accounting students have more career opportunities than ever before. While many accounting majors are still choosing the traditional routes of public or corporate accounting, others are tailoring their education toward management or systems consulting. As AIS educators it is imperative that we maintain currency in our curriculum for both the traditional majors and those students seeking a consulting career path.Although the AIS curriculum is applicable to both types of accounting majors, certain content is especially pertinent to those students interested in consulting. One subject that consultants draw upon extensively is systems documentation. Current AIS curriculum focuses on analysis, design, and documentation of systems from an internal control and data flow perspective, and students learn to use traditional accounting documentation tools. These techniques include document and systems flowcharts and data flow diagrams. While these tools may be sufficient for their intended purposes, they are not the primary documentation techniques used in the consulting profession. The objective of this paper is to advocate the inclusion of a popular management consulting documentation technique, process mapping, into the accounting curriculum. Process maps are used to better understand a business entity's current business processes and communicate these in a non-technical way. Additionally, process mapping can provide an initial foundation to successful process management.

scholarly journals Internal Controls and Operational Performance of Nonprofit Organizations

2021 ◽  
Author(s):  
Nathan R Berglund ◽  
Mikhail Sterin
Keyword(s):  
Nonprofit Organizations ◽  
Financial Reporting ◽  
Internal Control ◽  
Internal Controls ◽  
Operational Performance ◽  
Control Environment ◽  
For Profit ◽  
External Stakeholders ◽  
The Impact ◽  
Robust Evidence

This study examines the impact of auditor-reported internal control deficiencies (ICDs) on operational performance within nonprofit organizations. Contemporary studies in the for-profit environment document evidence that poor internal controls over financial reporting (ICFR) cause suboptimal operational performance. While these analyses are restricted to ICFR, the nonprofit environment allows external stakeholders to observe the effectiveness of both ICFR and internal controls over compliance. We find robust evidence of negative associations between both ICD types and two key measures of nonprofit operational performance: surplus and the charitable expense ratio. Our findings are relevant to multiple nonprofit stakeholders, demonstrating that the control environment has a pervasive impact on a nonprofit's ability to effectively execute its charitable mission.

The impact of an IT governance framework on the internal control environment

2017 ◽  
Vol 27 (1) ◽  
pp. 19-41 ◽  
Author(s):  
Michele Rubino ◽  
Filippo Vitolla ◽  
Antonello Garzoni
Keyword(s):  
Control System ◽  
Internal Control ◽  
It Governance ◽  
Control Environment ◽  
Content Type ◽  
Accounting Information Systems ◽  
Governance Framework ◽  
Environment Assessment ◽  
Internal Control System ◽  
The Impact

Purpose The purpose of this paper is to analyze how an IT governance framework [Control Objectives for Information and related Technology (COBIT)] influences the control environment and the internal control system. In particular, it aims to illustrate how the COBIT’s structure and processes impact on the seven categories of factors that compose the control environment. Design/methodology/approach This paper aims to highlight how an IT governance framework with its processes enables to improve the control environment assessment and implementation. Findings The analysis indicates that the implementation of the COBIT framework provides some indications for managers and auditors, which must implement or assess internal control system. Practical implications The adoption of the framework allows managers to focus effectively on integrating, aligning and linking processes. This improves the understanding of the key aspects connected to the control environment. In addition, the adoption of the framework allows overcoming some limitations regarding the Committee of Sponsoring Organizations framework. Originality/value This paper addresses an area of relevance to both practitioners and academics. This analysis focuses on Accounting Information Systems themes and, through the examination of an IT governance framework, suggests solutions and tools than can help managers and auditors to address the control environment assessment.

scholarly journals The Impact of Family Ownership on Quality and Disclosure of Internal Control in Pakistan

2021 ◽  
Vol 13 (16) ◽  
pp. 8755
Author(s):  
Imran Abbas Jadoon ◽  
Umara Noreen ◽  
Usman Ayub ◽  
Muhammad Tahir ◽  
Naima Shahzadi
Keyword(s):  
Internal Control ◽  
Multivariate Regression ◽  
Negative Impact ◽  
Secondary Data ◽  
Internal Controls ◽  
Control Environment ◽  
Minority Shareholders ◽  
Control Quality ◽  
The Impact

The role of family owners in the internal control environment is characterized by contradictory theoretical arguments i.e., entrenchment and alignment behavior. Therefore, the objective of this study is to investigate the behavior exhibited by family owners concerning the internal control environment in an underdeveloped regulatory setting. The study collected both primary and secondary data to use a multivariate regression research design to investigate the impact of family owners and CEOs on the internal control quality and disclosure of enterprises. The results of the current study demonstrated that family owners and family CEO have a negative impact on the internal control quality and disclosure, which validates the entrenchment behavior exhibited by family owners in the Pakistani setting. The results of the current study imply that policymakers should promote strict policy initiatives regarding the effectiveness of internal controls and their reporting so that companies are compelled to have better engagement in internal control practices for the protection of minority shareholders.

scholarly journals The Impact of Internal Control on Performance of Small and Medium-Sized Enterprises in an Emerging Economy

2021 ◽  
Vol 16 (2) ◽  
pp. 367-389
Author(s):  
Nguyen To Tam ◽  
◽  
Le Anh Tuan ◽  
Keyword(s):  
Risk Assessment ◽  
Organizational Performance ◽  
Internal Control ◽  
Communication Systems ◽  
Emerging Economy ◽  
Positive Influence ◽  
Control Environment ◽  
Information And Communication ◽  
Monitoring Activities ◽  
The Impact

This research studied the impact of internal control on financial performance of small and medium-sized enterprises (SMEs) in an emerging economy. The studying framework was derived from the Agency Theory to examine the relationship between internal control and organizational performance in SMEs. The paper used a survey and non-probability sampling and applied regression analysis to assess this effect on SMEs in Hanoi, Vietnam. Internal control consisted of five elements (including control environment, risk assessment, control activities, information and communication systems, and monitoring activities) by COSO. SME’s performance was measured by ROA primarily. This research analyzed data using SPSS and SmartPLS softwares. Using a sample of 94 respondents, the results show that the control environment which is a dimension of internal control has a positive influence on the performance of SMEs in this case. Other dimensions of internal control that are control activities, information and communication system, risk assessment, and monitoring activities showed insignificant impacts on performance of SMEs but the results still give some meaningful insights for SMEs in Vietnam. The results of this paper provide practical insights on the role of internal control for researchers and business managers. Keywords: internal control, performance, small and medium-sized enterprises

scholarly journals THE ESSENCE OF A PROJECT-ORIENTED ENTERPRISE IN THE CONDITIONS OF INDUSTRY 4.0

2021 ◽  
Author(s):  
Inna Chaikovska ◽  
◽  
Keyword(s):  
Competitive Advantage ◽  
Industry 4.0 ◽  
Business Processes ◽  
Competitive Advantages ◽  
Important Place ◽  
Continuous Generation ◽  
Operational Activities ◽  
Use Of Knowledge ◽  
The Impact ◽  
Single Approach

Industry 4.0 radically changes the approaches to the functioning of modern enterprises, business processes, components of competitive advantages of enterprises. There is an urgent need for continuous generation and use of knowledge and application of information technology in the innovative activities of the enterprise, which is implemented in the form of projects. Therefore, it is advisable to study the essential content of the category "project-oriented enterprise" and its transformation into "project-oriented enterprise 4.0" in Industry 4.0. Today, more and more Ukrainian enterprises are engaged in projects that allow them to implement innovative developments. Project activities occupy an important place along with their operational activities. Enterprises are aware of the need to implement project management and are in the process of their transformation into project-oriented enterprises. However, there is no single approach to defining the concept of "project-oriented enterprise", especially taking into account the peculiarities of their operation in Ukraine. The article is devoted to the study of the essential content of the category "project-oriented enterprise" and its transformation into the category "project-oriented enterprise 4.0" in Industry 4.0. The main features of the operation of project-oriented enterprises and the impact on them Industry 4.0 are identified. One of the main features of a project-oriented enterprise is the more intensive use of knowledge as a source of competitive advantage. It is determined that the approaches to the essence of the project-oriented enterprise have undergone significant changes with the advent of the concept of Industry 4.0. It is established that "project-oriented enterprise 4.0" is an enterprise which, in addition to its operational activities, is actively engaged in project activities, which undergoes various stages of transformation into project-oriented, its organizational structure has matrix elements and one of the main features is knowledge management system, which includes technological and social aspects, the purpose of which is the formation of "artificial" intellectual capital as a source of competitive advantage.

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