scholarly journals THE INFLUENCE OF ACCOUNTING RISKS ON THE QUALITY OF INFORMATION

2020 ◽  
pp. 179-190
Author(s):  
L.V. Gutsalenko ◽  
U.O. Marchuk
Keyword(s):  
Internal Control ◽  
Management System ◽  
Control Function ◽  
Accounting Information ◽  
Internal Audit ◽  
Management Control ◽  
Specific Information ◽  
Subjective Uncertainty ◽  
The Impact

The evolution of risk theory and its interpretation by economists of the neoclassical school are considered. The reasons that give rise to business risks are identified. It is emphasized that risk is objective, but correlated with subjective uncertainty or objective correlation of subjective uncertainty. The focus is on the impact of risk on the formation of performance of economic entities. It is proved that risk minimization is impossible without the availability of timely and reliable information about changes in the market environment, which is provided by accounting for the facts of economic situations. Accounting risks have been identified as an integral part of business risks. It is proved that in order to achieve efficient management, control is one of the important functions in the management system, because it combines accounting, analysis, forecasting, regulation of enterprises. It was found that control can be considered as a management function, and internal control (audit), which ensures the effectiveness of the control function of accounting - as a subsystem of accounting. It is determined that in order to minimize risks and ensure the usefulness of accounting information to users, it should have the following main characteristics: be objectively prepared (registration and reporting of accounting transactions should be presented from a neutral point of view, without any prejudices that could create the reader has a misconception about the financial condition, results or cash flows of the business); have a sequence of recording (fixation of information with consistent application of accounting standards, and presentation of consolidated results equally for all presented periods); the accountant prepares financial statements that contain specific information necessary for management to make a decision; be reliable and complete. It is noted that strengthening the effectiveness of the control function of accounting is possible under the condition of functioning in the management system of the internal audit service. The basic imperatives for reducing accounting risks are modeled. The strategic components that improve the quality of accounting information are identified.

scholarly journals Influence of the Quality of Accrual Financial Report Information with the Roles of Accounting Information System as an Intervening Factor

2017 ◽  
Vol 8 (2) ◽  
pp. 84
Author(s):  
Dyah Purwanti ◽  
Ghulbudin Isham Natser
Keyword(s):  
Information System ◽  
Human Resources ◽  
Financial Reporting ◽  
Internal Control ◽  
Accounting Information ◽  
Primary Data ◽  
Accounting Information System ◽  
The Government ◽  
The Impact

<p>This study aims to find empirical evidence about the role of accounting information system (AIS) as intervening factors that affect the quality of financial reporting information of the government. This study uses a questionnaire that primary data collected from respondents, namely employees of the accounting department of the government units, especially a partner institution in the State Treasury Office (KPPN) 2 Jakarta. Data processing is performed by the method of partial least squares (PLS). The results of this study are the accounting information system has significantly the impact on the quality of government financial reporting information. While the capacity factor of human resources, control data input and application of Government Accounting Standards (SAP) have a significant direct effect on the AIS, is larger when compared to a direct influence on the quality of financial reporting information. Other factors, organizational commitment and internal control system has a significant influence either directly or indirectly on the quality of financial reporting information. The findings of the study are expected to provide input to the government the importance of improving the accounting information system, such as strengthening the capacity of human resources and accounting applications in realizing quality financial information.</p>

scholarly journals Current Planning for Internal Audit of Risk Assessment of the Company Activities

2020 ◽  
pp. 48-57
Author(s):  
М. SHYGUN
Keyword(s):  
Effective Interaction ◽  
Internal Audit ◽  
Economic Security ◽  
Management Control ◽  
Operating Conditions ◽  
Financial Indicators ◽  
Internal Auditors ◽  
Working Plan ◽  
The Impact

Lack of management control of the activity risks creates critical operating conditions for the enterprise, in which the financial indicators may change unexpectedly and unfavorably. Avoidance of the risks of an entity's activity is possible if effective interaction is made primarily between economic security and internal audit departments. Productive work of internal auditors to identify, evaluate and reduce the impact of risks on the performance of the enterprise is possible with its proper organization. The article describes the key principles for planning the activities of internal auditors to ensure the quality of audit procedures. Approaches to the organization and planning of the Internal Audit Department's work on identifying risks of the entity's activities, minimizing them and preventing them in the future are disclosed. A working plan for the application of audit procedures in the department of accounting, cashier and warehouse is presented, which demonstrates procedures for identifying and assessing such types of risks as market, payment, currency, financial, tax, credit, loss of assets. The working plan of the audit procedures developed contains the most effective procedures, depending on the objects of the audit, determines the scope of the audit, the procedure of its carrying out, responsible executors, the terms of the procedures. The use of the following suggestions for the planning of internal audit allows to apply qualitatively different forms and methods of audit, types of audit procedures, specialize the audit activities, correctly establish the order of audits, take into account the results of audit in the preparation and approval of various types of enterprise reports.

scholarly journals The Effect of Corporate Governance in Palestine on the Efficiency of Internal Audit: Empirical Evidence

2016 ◽  
Vol 8 (5) ◽  
pp. 124 ◽  
Author(s):  
Suhaib Tawfiq Jarrar
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Audit Committee ◽  
Audit Quality ◽  
Internal Audit ◽  
Public Companies ◽  
Internal Auditor ◽  
The Right ◽  
The Impact

This paper comes to examine the impact of corporate governance in Palestine on the efficiency of internal audit from the reality of the listed corporations in the Palestine Exchange; [PEX]. The population of this paper consists of all the 25 listed Palestinian companies in the Palestine Exchange that have internal auditor. It also includes another 5 companies that rely on the internal audit by external companies. Hence, the number of the reviewed companies by this study is 30 companies (Palestine Exchange Market). Thereupon, 30 questionaires were distributed and retrived. However, this manuscript states a summary of the most important results. These results are explained as is shown in the following: (1) the findings of the study state that there is an effect of applying the variables of corporate governance altogether on the quality of the internal audit of the listed public companies in the Palestine Exchange. These rules are (disclosure and transparency, accountability, responsibility, justice, and independency). (2) The results of the study indicate that there is a significant effect of applying the corporate governance variables individually on the quality of the internal audit of the listed public companies in the Palestine Exchange. Thus, the effect of these variables appears contrasted respectively as the following: disclosure and transparency, justice and accountability, independency and responsibility. (3) The corporate governance represents combining the right practices and procedures which operate within the standards and rules that governed by the obligatory standards. These standards aim at ensuring that there aren’t any contradictions between the strategic goals of the company and the fuctional procedures of the administration in achieving these goals. (4) The internal audit adds value to the company through the functions that enhance its performance within corporate governance. This includes providing information to all levels of the management, evaluating the system of the internal control and the risk management, in addition to sticking the company with the principles of corporate governance. The findings of the study come up with the following recommendations: (1) the study assures the importance of applying the corporate governance principles because of their clear effect on the internal audit quality. It also recommends working efficiently on the professional development of the auditors and improving their performance through training programs, as well, encouraging them to keep up with the latest developments in the field of the auditing and other related fields. (2) It strongly recommends working on enhancing and activating the role of the board of directors and the audit committee; as well as granting them the independency. Hence, they will be able to carry out the tasks assigned to them. Consequently, they will avoid the effects that the company may be exposed to as a result of the internal weakness of the practical aspects of the principles of corporate governance; in addition to the negative impacts of this issue on the quality of the internal audit.

scholarly journals Research on the influence of accounting computerization and networking on E-commerce

2021 ◽  
Vol 2021 (1) ◽  
Author(s):  
Wenquan Shi
Keyword(s):  
Internal Control ◽  
Rapid Development ◽  
Accounting Information ◽  
Internal Audit ◽  
Internal Auditing ◽  
Accounting Information System ◽  
Face To Face ◽  
Environmental Setting ◽  
And Control ◽  
The Impact

AbstractE-commerce has broken through the pattern and boundary of traditional commodity exchange, so that there is no need for face-to-face transactions between merchants and consumers. This has impacted the traditional accounting industry, which broke the environmental setting of traditional accounting industry. This requires the extension and expansion of the economic environment of the new accounting industry, which has led to the computerization of accounting and the network of further upgrades. Accounting computerization and networking have greatly improved the speed and accuracy of accounting information processing, and at the same time made the classification of accounting duties more clear. However, accounting computerization and higher-level networking have in turn affected the development of e-commerce. Due to the rapid development of e-commerce, the corresponding internal auditing schemes of traditional enterprises have been unable to meet accounting and computerization. The impact of this will constrain the further development of e-commerce. Accounting computerization and networking the internal audit of e-commerce is mainly reflected in clues, internal control, and content and environment issues. This paper analyses the impact of accounting computerization and networking on the internal auditing of e-commerce, and finally analyse the auditing setup and experience based on a company H in the accounting information system, and explore the accounting calculation. In the context of globalization and networking, the strategy of how to deal with the trial and control part of e-commerce.

scholarly journals Budgetary discipline & factors that influence it: Study case in Ministries of Indonesia

2018 ◽  
Vol 8 (1) ◽  
pp. 49-58
Author(s):  
Ramdany Ramdany ◽  
Winwin Yadiati
Keyword(s):  
Internal Control ◽  
Good Governance ◽  
Accounting Information ◽  
The State ◽  
Partial Least Square ◽  
Series Data ◽  
State Budget ◽  
Quality Of Accounting Information ◽  
The Impact

The government has three legal instruments to improve the budgetary discipline. There are internal control, good governance and accounting information. The purpose of this study is to investigate the impact of the three instruments on the budget discipline contained on research questions. First, how much impact internal control on budgetary discipline. Second, how much impact the good governance on budgetary discipline. Third, how much impact the quality of accounting information on budgetary discipline. This study was conducted at the State Ministry with a population of 34 units of analysis in 2015. The ministry was taken as a study unit because it is related to some phenomenon of violations on budgetary discipline that has occurred. Study approach using quantitative method and data analysis with partial least square. Primary data is taken with media questionnaires and secondary data taken from the respective publications of the Ministries. The results show that the impact of internal control and good governance on budget discipline is positive but weak. Then the impact of the quality of accounting information on budget discipline is negative but weak. This study was conducted when the state budget was deficit. Probable different results when study is undertaken at a time when the state budget is surplus. It is expected that the further study with the state budget on surplus and time series data to compare the results of study for making decision.

scholarly journals The Impact of the Internal Audit on the Quality of Accounting Information in the Jordanian Commercial Banks

2018 ◽  
Vol 10 (9) ◽  
pp. 157
Author(s):  
Abdul Razzak Al-Chahadah ◽  
Mohammed Zakaria Soda ◽  
Rania Al Omari
Keyword(s):  
Financial Institutions ◽  
Information Quality ◽  
Accounting Information ◽  
Internal Audit ◽  
Professional Services ◽  
Performance Criteria ◽  
Unit Management ◽  
Entry Points ◽  
The Impact

Internal Audit is deemed an important issue of controversy and development in terms of concept, objectives, domain, scope of work or performance criteria due to the fundamental developments that occur in the environment surrounding the financial institutions, as well as in the concepts and entry points of other sciences associated with internal audit, in particular, the concepts of accounting information quality and its methods and advanced administrative trends which require internal audit to perform professional services to help the accounting unit management to produce high quality of financial statements that can be credible for those who are interested in the economics of the financial institutions.

scholarly journals Higher Sustainability and Lower Opportunistic Behaviour in Healthcare: A New Framework for Performing Hospital-Based Health Technology Assessment

2018 ◽  
Vol 10 (10) ◽  
pp. 3550 ◽  
Author(s):  
Gabriele Palozzi ◽  
Sandro Brunelli ◽  
Camilla Falivena
Keyword(s):  
Public Health ◽  
Health Technology Assessment ◽  
Internal Control ◽  
Technology Assessment ◽  
New Technologies ◽  
National Health System ◽  
Health Technology ◽  
Management Control ◽  
The Impact

Innovative health technology deployment represents the primary challenge within the sustainability of public health systems. On one hand, new technologies may potentially improve access to care and the quality of services. On the other hand, their rapid evolution and broad implications on existing procedures increase the risk to adopt technologies that are not value for money. As a consequence, Health Technology Assessment (HTA) is a critical process at each level of the National Health System. Focusing on the organisational level, this paper explores the current practices of Hospital-Based HTA (HB-HTA) in terms of management, control and behaviours of various actors involved. Among several tasks, decision-makers are appointed at managing the conflict of interest around health technology development, that could pave the way for corruption or other misleading behaviours. Accordingly, the purpose of the study is proposing a new strategic framework, named Health Technology Balanced Assessment (HTBA), to foster hospital-based health technology management aimed to align strategy and actions. The conceptual model is developed on three perspectives (clinical, economic and organisational) to make the actors involved in the assessment (clinicians, health professionals, hospital managers and patients) aware of the impact of new technology on the value chain. Besides supporting the decision-making process, such a tool represents support for the internal control system as a whole. By promoting structured evaluation, it increases transparency and accountability of public health organisations. Moreover, in the long run, the framework proposed will be useful to reach selected United Nations Sustainable Development Goals (UN SDGs) to enhance the quality of healthcare in the future.

scholarly journals The concept of audit of payments and settlements with employees at the enterprise

2021 ◽  
pp. 31-34
Author(s):  
Nataliia MOSKAL
Keyword(s):  
Internal Control ◽  
Business Processes ◽  
Accounting Information ◽  
Sources Of Information ◽  
Audit Process ◽  
Regulatory Requirements ◽  
Primary Documents ◽  
Quality Of Accounting Information ◽  
The Impact

Introduction. Audit of payments and settlements with employees is a relevant and widespread type of audit services. The purpose of the paper is to present in all essential aspects the concept of Audit of payments and settlements with employees, which can be applied in a practical environment to organize the audit process, as well as to improve the quality of accounting information, to correct violations and deficiencies and avoid possible financial sanctions. Results. The concept of Audit of payments and settlements with employees in the company, in our opinion, should describe the following main aspects: the purpose of the audit, subject and objects, audit tasks and sources of information, sequence of inspections, list of audit procedures and typical violations that may be identified during the audit. The purpose of the Audit of payments and settlements with employees is to confirm information on the completeness, accuracy, legality, accuracy of accounting and reporting, to confirm timeliness of payments to employees, taxes and fees, as well as to establish compliance with regulatory requirements. The subject of the Audit of payments and settlements with employees is the business processes and operations connected to the company's payments and settlements with employees, as well as the relationships that arise in the enterprise and beyond. Objects of Audit of payments and settlements with employees, in our opinion, should be divided into the following groups: elements of accounting policy; accounting operations; primary documents, accounting registers and reporting; information on violations of accounting, which are reflected in the documents of internal control, acts of inspections of state regulatory authorities, auditors' reports. An important aspect of the payroll audit concept is a list of structured common errors and irregularities that may be identified during the audit. Conclusion. The effectiveness of the audit and the impact of the audit on improving the quality of accounting information, eliminating violations and deficiencies, depends on the content of the concept used to conduct it.

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