scholarly journals INTERNAL CONTROL AND ECONOMIC SECURITY: FUNCTIONING AND INTERACTION

2020 ◽  
pp. 19-25
Author(s):  
S. A. Makarenko ◽  
Keyword(s):  
Control System ◽  
Internal Control ◽  
Negative Impact ◽  
Internal Audit ◽  
Economic Security ◽  
Audit Risk ◽  
Methodological Foundation ◽  
Economic Entity ◽  
Internal Control System ◽  
System Maturity

For the efficient implementation of functions in the sphere of internal control depending on the activity scale and nature, organizations create services of internal control, internal audit, risk management, and economic security; however, the functionality of these structures are not clearly defined. The main goal of this study is the allocation of responsibilities for making and implementing the decisions in the sphere of internal control, which ensures the concurrence and effectiveness of implemented measures at simultaneous nonduplication of functions. The paper deals with the study of the internal control system of an economic entity. The study determined the functional interrelation between the level of the internal control system maturity and the organizational structure of an economic entity. The author considered the structure of control authorities and their functionality based on the maturity level of the economic entity’s internal control system. The paper presents the diagrams of the feed-forward and feed-back mechanism peculiar to the full-functional internal control. Based on the generalization of theoretical provisions, the author determined the role of the internal control services as an instrument for ensuring the state of economic security of an organization. The proposed mechanism of functioning of structural divisions involved in the internal control system promotes the improvement of business management efficiency and reduces the negative impact of the external and internal factors. While developing an economic entity, the internal control system should be reconsidered, taking into account the formation of a single methodological foundation for all divisions. As a result of the study, the author recommends regularly examining (at least once a year) the divisions’ functions within the internal control system using the procedure described in the study.

scholarly journals INTERNAL CONTROL AS A TOOL OF SUPPORT ECONOMIC SECURITY OF THE ORGANIZATION AT THE MICRO LEVEL

2021 ◽  
pp. 86-94
Author(s):  
O. A. Ageeva ◽  
Yu. D. Matytsyna
Keyword(s):  
Control System ◽  
Internal Control ◽  
Research Methodology ◽  
Economic Security ◽  
General Idea ◽  
Economic Entity ◽  
Internal Control System ◽  
The Subject ◽  
Micro Level

Internal control is an integral part of an organization’s economic security. The purpose of the study is to determine the internal control tools that allow you to ensure and maintain a sufficient level of economic security of the enterprise. The subject is the internal control system, which is used to identify external and internal threats to the economic security of an economic entity at the micro level. The research methodology is based on the collection and generalization of facts related to the subject under study, the formation of a hypothesis about the subject of research – the Internal Control System (ICS) – and the development of a general idea of ways to overcome existing threats. As a result, the authors made a conclusion about the effectiveness of the internal control system in the enterprise in order to ensure its economic security. 

INTERNAL CONTROL AT A MODERN ENTERPRISE

2020 ◽  
Author(s):  
Фатима Дикалитовна Дахаева
Keyword(s):  
Control System ◽  
Significant Role ◽  
Internal Control ◽  
Management System ◽  
Economic Entity ◽  
Modern Enterprise ◽  
Internal Control System

В статье рассматриваются сущность и особенности организации внутреннего контроля на современном предприятии, выделяются ключевые составляющие системы внутреннего контроля предприятия, подчеркивается его значительная роль в системе управления экономического субъекта. The article discusses the essence and peculiarities of the organization of internal control in a modern enterprise, highlights the key components of the company's internal control system, emphasizes its significant role in the management system of an economic entity.

scholarly journals KEEFEKTIFAN AUDIT INTERNAL PEMERINTAH DAERAH

2017 ◽  
Vol 20 (1) ◽  
pp. 33
Author(s):  
Hadi Mahmudah ◽  
Bambang Riyanto LS
Keyword(s):  
Control System ◽  
Local Government ◽  
Control Systems ◽  
Internal Control ◽  
Positive Impact ◽  
Internal Audit ◽  
System Management ◽  
Management Support ◽  
Internal Control System ◽  
Audit Effectiveness

Penelitian ini menguji efektifitas sistem pengendalian intern, dukungan manajemen dan audit professionalism terhadap keefektifan audit internal. Sampel dalam penelitian ini adalah 39 Inspektorat Daerah dari enam Provinsi. Penelitian ini menggunakan regresi berganda untuk menganalisis data. Hasil penelitian menunjukkan bahwa sistem pengendalian intern dan dukungan manajemen berpengaruh secara positif terhadap keefektifan audit internal. Penelitian ini gagal memberikan bukti empiris audit professionalism berpengaruh terhadap keefektifan1 audit internal. Penelitian ini memperkaya penelitian yang sudah ada terkait keefektifan audit internal dan penekanan pentingnya sistem pengendalian intern di pemerintah daerah.This study examined the effectiveness of internal control system, management support, and audit professionalism on internal audit effectiveness of local government. The sample consists of 39 regional inspectorates of six provinces in Indonesia. By using multiple regressions, this study found that internal control system and management support has positive impact on the effectiveness of the internal audit. However, there is no support for the audit professionalism on internal audit effectiveness. This study enriches existing research related to the effectiveness of the internal audit and emphasis the importance of internal control systems in local government.

Applying the process approach in setting up the system of internal control in economic entities

2021 ◽  
Vol 20 (12) ◽  
pp. 2313-2323
Author(s):  
Zhanna A. KEVORKOVA ◽  
Natal'ya G. SAPOZHNIKOVA
Keyword(s):  
Control System ◽  
Internal Control ◽  
Business Processes ◽  
Risk Identification ◽  
Process Approach ◽  
Control Practice ◽  
Economic Entity ◽  
Internal Control System ◽  
Theoretical Generalization ◽  
And Control

Subject. The article addresses the organization and implementation of process approach when setting up a system of internal control of an economic entity, which ensures the management of effectiveness of divisions’ activities. Objectives. We aim at investigating the organization of the internal control system of an economic entity, based on its activities, accounting policies, classification of business processes, and risk identification. Methods. The study rests on methods of theoretical generalization, structural grouping, logical analysis, as well as the analysis of scientific and practical literature and accounting and control practice. Results. The analysis of practices revealed a number of problems in the implementation of the process approach in the accounting and control activities of economic entities, in particular, insufficient understanding and unpreparedness of management to implement the process approach, the lack of a system for regulating business processes, the lack of interconnection between the system of control indicators and the created business processes. It is advisable to divide the process of organizing the internal control system into a number of stages, i.e. the definition of activities, typology of business processes, risk identification, testing the internal control system’s quality. Conclusions. The introduction of the process approach in organizing an internal control system involves the systematization of information, depending on the nature of the business process, requiring permanent updating. The emergence of non-standard situations makes it necessary to adjust the boundaries of business processes. The resources of accounting business processes are personnel, software, equipment, and other infrastructure elements.

scholarly journals Evaluation of the effectiveness of the internal control system of the institution using key performance indicators

VUZF Review ◽  
2020 ◽  
Vol 5 (2) ◽  
pp. 55-63
Author(s):  
Anatolii Syrotenko ◽  
Ivan Tkach ◽  
Anatolii Loishyn ◽  
Mykola Tkach
Keyword(s):  
Control System ◽  
Internal Control ◽  
Performance Indicators ◽  
Internal Audit ◽  
Key Performance Indicators ◽  
Subject Area ◽  
Alternative Methods ◽  
Practical Implementation ◽  
Internal Control System ◽  
The Matrix

The conducted research may be of interest to specialists of internal audit, internal control, and managers of all levels, who organize the functioning of internal control in subordinate structural units. The article practically substantiates the use of the matrix of key performance indicators (KPI) in assessing the effectiveness of the internal control system of the Ministry of Defense of Ukraine. The research conducted in the article is the result of the practical implementation of the developed comprehensive methodology for assessing the effectiveness of the internal control system of the Ministry of Defense of Ukraine. To achieve this goal, the study conducted its decomposition and separately: evaluated the selected indicators of the effectiveness of the internal control system through appropriate testing and analysis of financial (accounting) statements; a matrix of key performance indicators is formed; the generalized indicator of efficiency of functioning of system of internal control is defined; the corresponding assessment of efficiency of system of internal control according to the chosen criterion is carried out. The results of the study made it possible to determine a numerical value that can objectively indicate the effectiveness of the internal control system of the institution. The results of the evaluation of indicators can be further systematized in the appropriate database for the formation of statistical information and taken into account in the risk-oriented planning of internal audit activities. The results of the study in the article can be used in part and applied thematically when checking other indicators in the internal control system. The article formulates the prospect of further research in the subject area to improve the accuracy of assessing the effectiveness of the ICS, as well as in finding alternative methods for its evaluation.

scholarly journals Selection of indicators of the scientific and methodological apparatus for assessing the effectiveness of the internal control system of the ministry of defense of Ukraine

2019 ◽  
Vol 9 (3) ◽  
Author(s):  
Anatolii Loishyn
Keyword(s):  
Control System ◽  
Internal Control ◽  
Internal Audit ◽  
Armed Forces ◽  
Research Problem ◽  
Scientific Discussion ◽  
Logical Sequence ◽  
Literary Sources ◽  
Internal Control System ◽  
Definition Of

The article summarizes the arguments and counterarguments in the framework of scientific discussion on the choice of indicators of the scientific and methodological apparatus for assessing the effectiveness of the system of internal control of the Ministry of Defense of Ukraine. The main purpose of the study is to study the possibility of choosing the indicators of the scientific and methodological apparatus for assessing the effectiveness of the internal control system. The systematization of literary sources and approaches to solving the problems considered in the article showed that the research problem is partly described and needs to be generalized and revised. The urgency of solving this scientific problem lies in the fact that the system of the Ministry of Defense of Ukraine and the Armed Forces of Ukraine actively implements a risk-oriented system of internal control in accordance with the general reform of the defense department to NATO standards. The research of the choice of indicators of the effectiveness of the internal control system in the article is carried out in the following logical sequence: the definition of the corresponding conceptual apparatus is formulated, namely, the interpretation of the terms: "indicator", the available approaches to the assessment of the effectiveness of the internal control system for the presence of indicators; a choice of indicators was made based on the results of their analysis and comparison, which can be offered to the scientific and methodical apparatus for assessing the effectiveness of the internal control system of the Ministry of Defense of Ukraine. The methodical tools of the research were the methods of analysis, synthesis, comparison, induction; the study period is the years from 1976 to the present. The object of the study is the process of assessing the effectiveness of the system of internal control in the system of the Ministry of Defense of Ukraine, since it is not sufficiently investigated. The study presents the results of empirical analysis of the choice of indicators, which showed the possibility of their inclusion in further research. The study empirically confirms and theoretically proves that these indicators must be taken into account when assessing the effectiveness of the internal control system of the Ministry of Defense of Ukraine. The results of the research can be useful for internal control and internal audit specialists.

scholarly journals Internal audit in the period of economic changes and its role in evaluation of the entity’s internal control. Theoretical characteristics and practical approaches

2021 ◽  
pp. 19-28
Author(s):  
Cristina Vasile Dolghi ◽  
Elena Gheorghe Petreanu
Keyword(s):  
Control System ◽  
Internal Control ◽  
Assessment Tool ◽  
Internal Audit ◽  
Evaluation Process ◽  
Primary Role ◽  
Control Environment ◽  
Internal Control System ◽  
Control Evaluation ◽  
Method Of Evaluation

Internal control delivers guarantee and trust for investors, clients, suppliers, but also for the entity’s employees and other interested parties. As a result, an effective internal control system has a significant impact on the credibility of a modern entity and its activities, which is ensured by the entity’s management, through an appropriate process of evaluating the effectiveness of internal control. On the basis of those exposed, we sustain the opinion shared by many experts in the field, that the primary role in evaluating the internal control system is attributed to internal audit, because in line with current development trends, it supports the entity in maintaining effective controls by evaluating efficiency and effectiveness. As well as by promoting biased business actions. In this connection, the authors approach the study of the basic aspects of the internal control evaluation process in the light of the identification of the method, establishing and interpreting the indicators used in the evaluation, as well as determining the criteria and practical tools for evaluation. As a method of evaluation of internal control the systematic method of authors is proposed, which involves the evaluation of each component of it. This approach permits internal auditors to make an integrated consideration of the effectiveness of internal control in the entity of the internal control system in the good functioning of the entity, which contributes to the fulfillment of its strategic objectives. In addition, the research carried out highlights the performance of the assessment tool – the corresponding questionnaire, which was developed to evaluate the control environment of the entity and applied in the activity of public interest entities in the Republic of Moldova. This study offers the possibility to recognize the deficiencies within the control environment established at the entity and offers the possibility to the management of the entity to improve its functioning mechanism.

scholarly journals PELAKSANAAN FUNGSI APARAT PENGAWAS INTERN PEMERINTAH (APIP) UNTUK MENUNJANG TINGKAT KEWAJARAN LAPORAN KEUANGAN PEMERINTAH KOTA MANADO

2016 ◽  
Vol 7 (2) ◽  
Author(s):  
Merry Inggrid Siwy ◽  
David P.E. Saerang ◽  
Herman Karamoy
Keyword(s):  
Control System ◽  
Local Government ◽  
Financial Reporting ◽  
Internal Control ◽  
Financial Management ◽  
Internal Audit ◽  
Financial Statements ◽  
Internal Auditor ◽  
Internal Control System ◽  
The Government

Internal Audit is the whole process of audit activities, the Review, evaluation, monitoring and supervisory activities other against the implementation of tasks and functions of the organization in order to provide reasonable assurance that the activities have been carried out in accordance with the benchmarks that have been set effectively and efficiently for the benefit of the leadership to Realize good governance.Accountability and transparency in the new government could be achieved if all levels of leadership controlling activities on the overall activities in their respective agencies . Internal control system ( SPI ) is a process that is integral to the actions and activities carried out continuously by the management and all employees to provide reasonable assurance on the achievement of organizational goals through effective and efficient , the reliability of financial reporting , the safeguarding of state assets, and compliance with legislation. To strengthen and support the effectiveness of internal control over the SPI made ​​implementation of tasks and functions of government agencies including state audits carried out by the internal control official Government ( APIP ) .The auditor's responsibility to detect fraud or irregularity embodied in the planning and execution to obtain reasonable assurance about whether the financial statements have been prepared in accordance with established standards.The purpose of this study was to analyze the functions of Government Internal Supervisory Apparatus (APIP) / Internal Auditor in supporting reasonable levels of Local Government Finance Report Manado City. Respondents were selected are few skilled examiner at the office of the Inspectorate of Manado. Approach Using Qualitative methods Ethnography.APIP functions that work well to prevent fraud , to produce valuable output to be input to the external auditor , the executive and the legislature to improve financial management and accountability in the area of ​​the future . Eksternal Auditor may use the results from the monitoring APIP mainly reviews the financial statements of the government , supporting the management of local government in implementing the recommendations and improvements  Internal control system . APIP professional and independent encourage increased transparency and accountability in financial management to improve the fairness of the financial statements . Keywords: Government Internal Supervisory Apparatus, fraud detection, the fairness of the financial statements

scholarly journals Assessment of “maturity” of the taxpayer's internal control system for tax monitoring purposes

2021 ◽  
pp. 28-59
Author(s):  
Elena Vladimirovna Berezina ◽  
Anna Sergeevna Balandina ◽  
Ol'ga Svyatoslavovna Belomyttseva
Keyword(s):  
Control System ◽  
Internal Control ◽  
Control Procedure ◽  
Economic Entity ◽  
It Systems ◽  
Internal Control System ◽  
The Subject ◽  
The One ◽  
Definition Of

The internal control system is examined as a variety of internal control of an economic entity on the one hand, and as the foundation for transitioning towards tax monitoring on the other. Such approach allows assessing this structure from the perspective of taxpayers, as well as from the standpoint of implementation of public function of tax control. The object of this article is the process of improving internal control system of tax obligations by the taxpayer in the conditions of digitalization of tax administration. The subject of this article is the theoretical aspects of internal control as an administrative function, as well as comparative analysis of the Russian “internal control” system with the classical COSO model. The scientific novelty consists in comprehensive research of the internal control of tax obligations, determination of its essential characteristics,  and assessment of the consequences of formalization of requirements thereof, which led to the conclusion on transformation of the internal control of the taxpayer from the area of reputational merits of the economic entity and internal administration instruments to the subject of public control by tax authorities in tax monitoring processes. It remains to be seen whether state interference in such delicate sphere of activity of an economic entity as internal control is justified. The goal of this research consists in the analysis of the effective requirements of the Federal Tax Service of Russia from the perspective of possibility of their implementation by the particular taxpayers. The article provides the examples of assessment of certain components of the internal control system based on the criteria set by the Federal Tax Service of Russia. The author formulates the definition of control procedure, carries out classification of the aforementioned criteria; develops the examples of effective design of some controls; as well as presents the examples of assessment of IT systems from in the context of extended requirements of the Federal Tax Service of Russia.

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