scholarly journals Role of Effective Internal Control Structure in Achievement of Targeted Success in Businesses

2018 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Hasan Turedi ◽  
Duygu Celayir
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Control Structure ◽  
Corporate Management ◽  
Control Structures ◽  
Economic Relations ◽  
Business Environments ◽  
Management Functions ◽  
The Impact ◽  
The Way

Due to economic relations evolving over time, technology and changing business environments, the way in which one of the management functions, “control”, is executed has undergone a number of changes. Accordingly, the management of a business has become unable to control operations directly, making it a necessity for businesses to obtain timely and reliable data for a number of purposes, including protecting assets, and eliminating or minimizing errors and frauds. Internal control structures, formed within the business to serve this purpose, have become more relevant in terms of protecting business assets, identifying the way operations are executed and ensuring execution of operations at the desired level of efficiency. Internal control is defined as a structure in businesses which is directed by board of directors, managers and employees, aims to ensure effectiveness and efficiency of operations, reliability of the financial reporting system, and compliance with laws, and is designed to provide reasonable assurance in these aims. Depending on the position they assume, officials at every level have responsibilities in the context of ensuring effective and efficient execution of the internal control structure in businesses, and accordingly, of corporate management, and attaining expected goals. This study will examine development of an effective internal control structure in terms of attaining expected success by businesses and the impact thereof on the business.

scholarly journals PENGARUH STRUKTUR PENGENDALIAN INTERNAL, KUALITAS SUMBER DAYA MANUSIA, KELENGKAPAN DOKUMEN ARSIP USAHA DAN FUNGSI MANAJEMEN TERHADAP PERKEMBANGAN USAHA MIKRO KECIL DAN MENENGAH (UMKM) DI KABUPATEN BANYUMAS

2019 ◽  
Vol 17 (1) ◽  
pp. 9-23
Author(s):  
Rini Widianingsih ◽  
Icuk Rangga Bawono ◽  
Rasyid Mei Mustafa ◽  
Isman Setyo Nugroho
Keyword(s):  
Regression Analysis ◽  
Empirical Study ◽  
Human Resources ◽  
Internal Control ◽  
Control Structure ◽  
Business Development ◽  
Control Structures ◽  
Influential Variable ◽  
Management Functions

This research is an empirical study with a survey of MSMEs in Banyumas Regency. The purpose of this study was to determine the condition of the structure of internal control of MSMEs, to know the development of MSMEs in Banyumas Regency, to know the significance of the influence of internal control structures, the quality of human resources, the completeness of MSME business records and management functions on the development of MSME businesses both simultaneously and partially. to find out the variables that most influence the business development of MSMEs. This study uses multiple regression analysis. Based on the results of the study, it was concluded that the structure of internal control in MSMEs in Banyumas District was adequate. There are developments in the business of MSMEs in Banyumas Regency from 2012 to 2016. Simultaneously the structure of internal control, quality of human resources, completeness of business records and management functions have a significant effect on the development of MSME businesses in Banyumas Regency. Partially the quality of human resources and completeness of business records documents have a significant effect on the development of MSME businesses in Banyumas Regency, while the internal control structure and management functions have no effect on the development of MSME businesses in Banyumas Regency. Quality of Human Resources is the most influential variable on the development of MSME business in Banyumas Regency.

scholarly journals Assessing The Internal Control Structure For Income Tax Account Balances And Their Related Disclosures

2019 ◽  
Vol 23 (1) ◽  
pp. 1-6
Author(s):  
Jeff Decker ◽  
Richard Ray ◽  
Tim Kizirian
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Income Tax ◽  
Control Structure ◽  
Preliminary Assessment

We provide practical considerations to guide auditors in performing a preliminary assessment of the design of the auditee’s control structure related to income tax account balances and their related disclosures which should contribute to more reliable financial reporting. While our process is specifically designed for use in performing an integrated audit under PCAOB Auditing Standard No. 5 (PCAOB, 2007), the internal control objectives and related control activities we present are also useful in performing other types of audits or limited engagements.

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 Assessment of Government Internal Control Systems on Financial Reporting Quality in Ghana: A Case Study of Ghana Revenue Authority

2018 ◽  
Vol 10 (11) ◽  
pp. 40
Author(s):  
Wonder Agbenyo ◽  
Yuansheng Jiang ◽  
Prince Komla Cobblah
Keyword(s):  
Control Systems ◽  
Financial Reporting ◽  
Internal Control ◽  
Negative Impact ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Quality Reporting ◽  
The Impact

Internal control systems cannot be underestimated as it serves as the lifeblood of most institutions in terms of its imperative roles that it plays in both tangible and intangible assets of an organization. Internal control actions on quality financial report state positive goals more especially when all parties involved adhere to their duties; thus, making the quality of financial reporting comparable, understandable, relevant, and reliable. In this regard, this study investigated the impact of government internal control systems on financial reporting quality in Ghana using Ghana Revenue Authority as the case study. Specifically, the study examined the nature and quality of financial reporting and the impact of government internal control systems on financial reporting quality. Both quota and simple random sampling techniques were used to select fifty (50) persons as the sample size of the study. Questionnaires were used to obtain data. The correlation matrix was used to examine the relationship between government internal control systems and financial reporting quality. The study finds out that contrary to apriori expectation sign monitoring as an element of internal control system has a negative impact on the financial quality reporting but was however statistically significant. The study also revealed that with a unit increase in the collection performance, the financial reporting quality of GRA will improve. The study recommended that the government should ensure that the internal control systems are well monitored and regulated.&nbsp;

scholarly journals PENGARUH STRUKTUR PENGENDALIAN INTERNAL, TATA KELOLA DAN ANALISIS RISIKO KEUANGAN TERHADAP EFEKTIVITAS PENYALURAN KREDIT PADA KOPERASI SIMPAN PINJAM DI KABUPATEN ACEH BESAR

2020 ◽  
Vol 5 (4) ◽  
pp. 551-559
Author(s):  
Suci Hariyati ◽  
Fazli Syam BZ
Keyword(s):  
Risk Analysis ◽  
Internal Control ◽  
Financial Risk ◽  
Sampling Method ◽  
Control Structure ◽  
Quantitative Approach ◽  
Primary Data ◽  
Control Structures ◽  
Purposive Sampling ◽  
Savings And Loan

The purpose of this study was to determine the effect of internal control structures, governance, and financial risk analysis on the effectiveness of credit distribution to savings and loan cooperatives in Aceh Besar District. The data used in this study are primary data using a quantitative approach. This study uses purposive sampling method in determining the sample, and there are 10 cooperatives that become samples that meet the criteria.Based on the research results, it shows that the structure of internal control, governance, and financial risk analysis together has a significant effect on the effectiveness of lending. The magnitude of the influence of internal control, governance and financial risk analysis on the effectiveness of lending was 63.8%. The internal control structure has a significant effect on the effectiveness of lending. Governance does not have a significant effect on the effectiveness of lending. Financial risk analysis has no significant effect on the effectiveness of lending

scholarly journals LEGAL FORMS OF CONTROL AND SUPERVISION OF STORAGE AND OF EFFECTIVE USE OF STATE PROPERTY BY PARTICIPANTS OF ECONOMIC RELATIONS

2021 ◽  
pp. 3-9
Author(s):  
V.S. Shcherbyna ◽  
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Internal Audit ◽  
The State ◽  
State Enterprise ◽  
Budget Process ◽  
Economic Relations ◽  
Business Entities ◽  
Legal Forms ◽  
Effective Use

The main legal forms of control and supervision over the preservation and effective use of state property by participants in economic relations, which are considered as one of the elements of the legal regime of state property, are studied. According to the results of the study, the following main legal forms of control and supervision over the preservation and effective use of state property by participants in economic relations are identified: a) control by authorized bodies over compliance with the contract concluded with the head of the state enterprise; head of the preservation and effective use of state property; b) control by the State Property Fund of Ukraine over the use of leased integral property complexes of state enterprises and leased state property; c) accounting and financial reporting of business entities, as well as control and supervision over their condition and reliability; d) audit of financial statements; e) state financial audit; f) internal control and internal audit in the budget process. It is noted that the current legislation does not make a clear distinction between the functions of control and supervision, especially in cases where it concerns the powers of authorized public authorities, which in accordance with Part 2 of Art. 19 of the Constitution of Ukraine are obliged to act only on the basis, within the powers and in the manner prescribed by the Constitution and laws of Ukraine.

The Unintended Consequences of Internal Controls Reporting on Tax Decision Making

2019 ◽  
Vol 42 (1) ◽  
pp. 83-102
Author(s):  
Victoria J. Hansen
Keyword(s):  
Decision Making ◽  
Financial Reporting ◽  
Internal Control ◽  
Unintended Consequences ◽  
Internal Controls ◽  
Corporate Tax ◽  
Material Weakness ◽  
Reporting Requirements ◽  
Internal Control Deficiencies ◽  
The Impact

ABSTRACT This study investigates the impact of the internal controls over financial reporting requirements (ICFR) on the decision making of corporate tax executives. I examine tax executives' decisions to disclose an internal control deficiency by amending a prior year return when the internal control deficiency will be classified as either a significant deficiency or a material weakness. I also examine if tax executives' decisions are impacted by whether amending results in a refund or additional tax due. I find tax executives are less likely to disclose (amend) when the internal control deficiency is classified as a material weakness. When facing a material weakness, 16.7 percent choose not to disclose. Tax executives are also less likely to disclose (amend) when amending results in additional tax due. These results indicate the ICFR requirements may have unintended consequences. If executives do not disclose internal control deficiencies, the reliability of financial reporting is limited.

The Impact of SOX Section 404 Internal Control Quality Assessment on Audit Delay in the SOX Era

2006 ◽  
Vol 25 (2) ◽  
pp. 1-23 ◽  
Author(s):  
Michael L. Ettredge ◽  
Chan Li ◽  
Lili Sun
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Small Sample ◽  
Impact Factors ◽  
Section 404 ◽  
Material Weakness ◽  
Control Quality ◽  
Sarbanes Oxley ◽  
Specific Material ◽  
The Impact

This study analyzes the impact of internal control quality on audit delay following the implementation of the Sarbanes-Oxley Act (2002) (SOX). Unlike prior studies of audit delay that obtain information about internal control strength via surveys, or use fairly crude proxies for internal control quality, our study employs external auditor assessments of internal control over financial reporting (ICOFR) that are publicly disclosed in SEC 10-K filings under SOX Section 404. Thus, the empirical evidence provided in this study is both timely and reliable (i.e., not subject to small sample bias or weak proxies). Consistent with our expectation, we find that the presence of material weakness in ICOFR is associated with longer delays. The types of material weakness also matter. Compared to specific material weakness, general material weakness is associated with longer delays. Additional analyses indicate that companies with control problems in personnel, process and procedure, segregation of duties, and closing process experience longer delays. After controlling for other impact factors, this study also documents a significant increase in audit delay associated with the fulfillment of the SOX Section 404 ICOFR assessment requirement. This suggests that Section 404 assessments have made it more difficult for firms to comply with the SEC's desire to shorten 10-K filing deadlines. Our finding thus supports and helps explain the SEC's decisions in 2004 and 2005 to defer scheduled reductions in 10-K filing deadlines (from 75 days to 60 days) for large, accelerated filers.

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