Internal Controls For The Revenue Cycle: A Checklist For The Consumer Products Industry

In today’s difficult economic climate, business managers must carefully consider all aspects of business operations to minimize waste and increase efficiency. The revenue cycle continues to be the primary area of fraud and abuse requiring strong, comprehensive internal controls (AICPA 2002). Internal controls in the revenue arena are now more important than ever. The current paper provides a control review checklist for the revenue cycle that will aid managers and independent auditors in the consumer products industry. The checklist is applicable for firms at various levels of the distribution channel and can be used as a general benchmark to perform preliminary evaluations of a company’s internal control system. Auditors can compare their company’s control objectives with the objectives that are presented. During preliminary investigations of the company’s internal control system, auditors should review whether important control objectives have been omitted and whether the omission incurs or heightens risk. The control review checklist can also be used by CFOs or Controllers in the Consumer Products industry in reviewing whether their company’s internal control systems are adequate. The checklist provides CFOs or Controllers internal controls that external, independent auditors consider to be important.

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Internal Controls For Hospitality Revenue In The Gaming Industry

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v9i8.5291 ◽

2011 ◽

Vol 9 (8) ◽

pp. 15 ◽

Cited By ~ 1

Author(s):

Tim Kizirian ◽

Tim Heinze ◽

John (Skip) Lees

Keyword(s):

Control System ◽

Control Systems ◽

Internal Control ◽

Internal Controls ◽

Business Managers ◽

Gaming Industry ◽

Business Operations ◽

Economic Climate ◽

Internal Control System ◽

Revenue Cycle

In todays difficult economic climate, business managers must carefully consider all aspects of business operations to minimize waste and increase efficiency. The revenue cycle continues to be the primary area of fraud and abuse requiring strong, comprehensive internal controls (AICPA 2002). Internal controls in the revenue arena are now more important than ever. The current paper provides a control review checklist for hospitality revenue in the gaming industry. Extant studies have often focused on internal controls for the gambling operations of the gaming industry to the neglect of the hospitality portion of the industry. For many firms in the industry, the hospitality revenue can account for half of total firm revenue. The checklist we provide can be used as a general benchmark to perform preliminary evaluations of a companys internal control system in the hospitality arena. Auditors can compare their clients control objectives with the objectives that are presented. During preliminary investigations of the companys internal control system, auditors should review whether important control objectives have been omitted and whether the omission incurs or heightens risk. The control review checklist can also be used by CFOs or controllers in the gaming industry in reviewing whether their companys internal control systems are adequate. The checklist provides CFOs or controllers internal controls that external, independent auditors consider to be important.

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ANALISIS SISTEM PENGENDALIAN INTERNAL ATAS PEMBIAYAAN MURABAHAH PADA BRI SYARIAH KC MANADO

GOING CONCERN : JURNAL RISET AKUNTANSI ◽

10.32400/gc.13.03.20468.2018 ◽

2018 ◽

Vol 13 (04) ◽

Author(s):

Ummu Almaas Khoirunnisaa ◽

Hendrik Manossoh ◽

Dhullo Afandi

Keyword(s):

Control System ◽

Internal Control ◽

Descriptive Analysis ◽

Internal Controls ◽

Selling Price ◽

Internal Control System ◽

The Cost ◽

Document Review ◽

Rules Set ◽

Collection Methods

Murabaha is a sale and purchase agreement with the selling price of goods at cost plus an agreed profit which the seller must disclose the cost of the goods to the buyer. The purpose of this research is to analyze the internal control system applied to BRI Syariah KC Manado whether it has been effective and in accordance with the principles of COSO (Committee Of Sponsoring Organizations). Data analysis method of this research is using descriptive analysis that compares the results of observations, interviews, document analysis established by the company with existing theory. Data collection methods in this study are interviews, observation, and document review. The results shows that internal controls applied for murabahah financing at BRI Syariah KC Manado include rules set by management, organizational structure, forms and documents used in murabahah financing, recording of legitimate financing transactions, and monitoring of financing. Internal control of murabahah financing at BRI Suyariah KC Manado has been running quite well. But in application still found weaknesses that can hinder the implementation of internal controls in the company. Still found employees who do double job. This is not in accordance with the principle of COSO, where Commitment in the Competence of employees should be improved and more qualified in various areas of specialization. BRI Syariah KC Manado in applying internal controls can be affirmed and in accordance with the principles of COSO.Keywords: COSO, murabahah financing, internal control system.

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Do Client-Prepared Internal Control Documentation and Business Process Flowcharts Help or Hinder an Auditor's Ability to Identify Missing Controls?

Auditing A Journal of Practice & Theory ◽

10.2308/aud.2009.28.1.79 ◽

2009 ◽

Vol 28 (1) ◽

pp. 79-94 ◽

Cited By ~ 22

Author(s):

James Lloyd Bierstaker ◽

James E. Hunton ◽

Jay C. Thibodeau

Keyword(s):

Control System ◽

Business Process ◽

Internal Control ◽

Control Design ◽

Internal Controls ◽

Design Evaluation ◽

Treatment Conditions ◽

Internal Control System ◽

Research Findings ◽

Control Matrix

SUMMARY: The purpose of this study is to examine the extent to which client-prepared internal control documentation and business process flowcharts affect auditors' ability to detect missing internal controls. A total of 395 experienced auditors participated in a two (internal control matrix: blank or client-prepared) by two (business process flowchart: absent or present) between-participants experiment. The research findings indicate that auditors who were supplied with a blank internal control matrix and a business process flowchart identified significantly more missing controls relative to the three other treatment conditions, among which there were no differences in the number of identified missing controls. The results indicate that when auditors are evaluating the effectiveness of a client's internal control system for a significant business process, they should be provided with a flowchart of the business process under examination and complete their internal control design evaluation before reading client-prepared internal control documentation.

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Implementing the Internal Control System in the Islamic Microfinance Institutions AN EXPLORATORY STUDY OF 13 BMT’S IN DEPOK CITY

AHKAM Jurnal Ilmu Syariah ◽

10.15408/ajis.v15i2.2863 ◽

2015 ◽

Vol 15 (2) ◽

Author(s):

Sepky Mardian ◽

Rabitha Nabila Haifa

Keyword(s):

Control System ◽

Internal Control ◽

Exploratory Study ◽

Internal Controls ◽

Microfinance Institutions ◽

Internal Control System ◽

Islamic Microfinance

BMT (Bayt al-Mal wa al-Tamwil) should further improve the prudential principles in giving credit to avoid things that are unintended. Therefore, it needs to improve the internal control system (ICS), so the risk of financing problems can be prevented. This study refers to the internal control system based on the COSO framework. The object of this study is 13 BMTs in Depok. The study found that the internal control system at 13 BMTs in Depok were effective. This is supported by the results of the answers to the questionnaire related to 86% effectiveness of internal controls. However, it is still found weaknesses in the lack of spontaneous checks on the use of funds by customers, incompleteness flowchart and pre-numbered documentsDOI: 10.15408/ajis.v15i2.2863

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Evaluasi Sistem Pengendalian Internal Penerimaan Kas pada Apotek Kimia Farma 307 Banyuwangi

e-Journal Ekonomi Bisnis dan Akuntansi ◽

10.19184/ejeba.v5i1.7741 ◽

2018 ◽

Vol 5 (1) ◽

pp. 76

Author(s):

Vicky Roh Idhofi ◽

S. Sudarno ◽

Agung Budi S.

Keyword(s):

Control System ◽

Control Systems ◽

Internal Control ◽

Qualitative Method ◽

Internal Controls ◽

Cash Income ◽

Accounting System ◽

Internal Control System ◽

A Company ◽

Collection Methods

Internal control system in a company is one form of action used to safeguard property owned by the company. The existence of an internal control system is expected to prevent the risk of errors occurring either intentional or without the element of intent. The risk of such errors can be derived from the various parties concerned. This is one reason that good procurement control system in an accounting system in this case is in the system of cash receipts. From the observation while at Kimia Farma 307 Banyuwangi seen that in a system of cash receipts from cash income services namely health checks and cash sales are still very modest. The accounting system of the cash receipts of the business activity is only using the document pickup. When viewed from the frequency of sales and service checks every day, the system that has been used is deemed to be less effective in terms of internal controls. This study aims to determine in real terms how the internal control system of cash receipts and evaluation of internal control systems at these pharmacies. This research uses qualitative method to analyze the data. The data obtained from three data collection methods are interview, observation and documentation. Keywords: system of internal control, cash receipts in cash, accounting system, system evaluation

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ETHICAL VALUES, INTEGRITY AND INTERNAL CONTROLS IN PUBLIC SECTOR ORGANISATIONS: A DEVELOPING COUNTRY PERSPECTIVE

Management and Accounting Review (MAR) ◽

10.24191/mar.v16i2.633 ◽

2017 ◽

Vol 16 (2) ◽

pp. 41

Author(s):

Philip Ayagre ◽

Julius Aidoo-Buameh

Keyword(s):

Control System ◽

Public Sector ◽

Internal Control ◽

Internal Controls ◽

Ethical Values ◽

Policy Makers ◽

Ethical Environment ◽

Internal Control System ◽

Public Sector Managers ◽

The Relationship

The study established the relationship between the perceived commitment to ethical values, integrity of public sector managers and its impact on the internal control system of public sector organisations in Ghana. The study employed pearson’s correlation to explain the association between the ethical environment and the internal control system. Results revealed statistically significant negative association between the ethical environment and three components of the internal control system investigated in the study. The findings of the study should be of concern to policy makers, development partners, auditors, boards of public sector organisations as they play their fiduciary roles in the country.

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Analisis Pengendalian Internal Atas Sistem Informasi Akuntansi Penerimaan Dan Pengeluaran Kas Pada PT. Bank Rakyat Indonesia (Persero) Tbk Kantor Cabang Depo

Neraca Keuangan : Jurnal Ilmiah Akuntansi dan Keuangan ◽

10.32832/neraca.v13i2.2310 ◽

2018 ◽

Vol 13 (2) ◽

Author(s):

Muhamad Arifialdi ◽

Muhamad Zakie Hanifan ◽

Yudiana .

Keyword(s):

Information System ◽

Control System ◽

Direct Observation ◽

Internal Control ◽

Accounting Information ◽

Internal Controls ◽

Accounting Information System ◽

Internal Control System ◽

Real Picture ◽

Descriptive Method

Bank Rakyat Indonesia (BRI) is one of the largest government-owned bank in Indonesia. To be competitive in the banking world, the company should be able to improve services so that customers can feel satisfied and do not switch to another bank. All companies need cash for operations, but cash is the most sensitive assets against fraud so it needs a good internal control. By doing a good internal control companies can reduce their risk of loss from fraud which may be committed by employees. Internal control system applicable to the accounting information system is very useful to prevent and keep the things that are not desirable. Internal control system can also be used to check for errors that occurred so that it can be used to correct. The purpose of this study is to provide feedback to the company in order to improve security, especially through internal control of cash. This research was conducted with qualitative descriptive method in which the author direct observation to get a real picture of the internal control over the accounting information system cash receipts and disbursements. Results of research on the author to prove that internal controls had been inadequate because it has met the elements in internal control in accordance with the prevailing theories

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An Internal Control Evaluation Tool For The Construction Industry

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v7i12.2370 ◽

2011 ◽

Vol 7 (12) ◽

Author(s):

Lou X. Orchard ◽

Scott L. Butterfield

Keyword(s):

Control System ◽

Construction Industry ◽

Internal Control ◽

Preliminary Evaluation ◽

Evaluation Tool ◽

Construction Company ◽

Significant Control ◽

Internal Control System ◽

Independent Auditors ◽

Control Evaluation

This paper presents a Control Objectives Reconciliation, a tool that independent auditors of clients in the construction industry should find useful in performing a preliminary evaluation of the client’s internal control system.  Auditors are advised to compare their client’s control objectives with those presented in Exhibits 1 through 7.  Where the client’s system appears to omit significant control objectives, the auditor should consider the risks brought on or magnified by the omission during the preliminary evaluation of the client’s internal control system.  The Control Objectives Reconciliation is also potentially useful to Construction Company CFOs or Controllers who may be concerned about the adequacy of their company’s internal control system.  The Reconciliation also highlights for Construction Company CFOs or Controllers those internal controls deemed to be important to their external, independent auditors.

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THE EFFECT OF INTERNAL CONTROL ON ORGANIZATION PERFORMANCE IN REFERENCE TO MOHA SOFT DRINKS COMPANY: A CASE STUDY IN HWASSA PEPSI COLA FACTORY

International Journal of Advanced Research ◽

10.21474/ijar01/12575 ◽

2021 ◽

Vol 9 (03) ◽

pp. 204-215

Author(s):

Ayneshet Agegnew Alemu ◽

◽

Tripiti Gujral ◽

Keyword(s):

Control System ◽

Organizational Performance ◽

Internal Control ◽

Performance Standards ◽

Internal Controls ◽

Organization Performance ◽

Effective Strategies ◽

Support Organization ◽

Internal Control System

Internal controls promote efficiency, reduce risks of assets loss and help to ensure the reliability of financial statements and compliance with laws and regulations (Coco, 2005).Thus successful organizations set performance measures that focus attention that identifies and communicates the success, support organization learning and provide a basis for assessment and reward (Brown, 2001).In order to be able to perform, organizations should critically look at customers and all stakeholders in business and know how best they are satisfying their needs. Kloot (1999), adds that organizations should continuously improve their services through assets accumulation, create value, improve quality services and flexibility, internal control system is intervened with organizations operating activities and it is most effective when controls are built into the organizations infrastructure becoming part of the very essence the organizations success in terms of continued improvement on performance standards as part of the competitive advantage of the organization.However according to how work is carried out some companies, there have poor documentations, no segregation of duties which affect organizational performance. This study will investigate the purpose of ascertaining the effect of internal control system on organizational performance.This study used descriptive design in soliciting information on the effect of internal control system on organizational performance. Data was collected from the respondents using questionnaires, and analyzed using descriptive statistics. The study findings indicated that the organization carried out proper authorization and approval of transactions. Sometimes transactions were carried out without proper authorization and sometimes there were no approval, this created room for conducting fraudulent activities like misappropriations.The result of the study also shows that that almost 2/3 of the respondents did agree with the fact that the organization reconciled physical cash with cash book balances, while 21% disagreed on the facts. This was because most business purchases (receipts) were not recorded so identifying the actual value of the assets was difficult leaving accountants with no knowledge on the assets.Based on this results, the study recommends that management should develop more effective strategies that will ensure that internal control is effective and efficient, so that fraud perpetration in the organization will be significantly reduced. The study also recommends that the company should work to correct its internal control system by periodic reconciliation of accounts.

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DEVELOPMENT OF INTERNAL CONTROL SYSTEM OF STATE SUBSIDIES FOR AGRICULTURE ORGANIZATIONS

Vestnik of Kazan state agrarin university ◽

10.12737/14747 ◽

2015 ◽

Vol 10 (3) ◽

pp. 18-24 ◽

Cited By ~ 1

Author(s):

Нуриева ◽

Regina Nurieva

Keyword(s):

Control System ◽

Internal Control ◽

Internal Controls ◽

Government Subsidies ◽

Internal Control System ◽

Control Procedures ◽

The Subject ◽

Agricultural Organizations ◽

State Subsidies

The article discusses the technique of internal control of government subsidies and peculiarities of its organization in the agricultural organizations. The subject and directions of prior internal controls were determined and recommendations were given according to the list, content and sequence of control procedures in this area.

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