scholarly journals Assessing bank’s internal control effectiveness

2020 ◽  
Vol 9 (4) ◽  
pp. 196-206
Author(s):  
Tamer Aksoy ◽  
Abdullai Mohammed
Keyword(s):  
Social Sciences ◽  
Risk Assessment ◽  
Internal Control ◽  
Response Rate ◽  
Financial Institution ◽  
Control Environment ◽  
Control Effectiveness ◽  
Assessment And Monitoring ◽  
Monitoring Activities ◽  
Analyze Data

This paper aims to evaluate the effectiveness of Ghanaian listed banks using COSO’s IC framework. Only Control environment, Risk assessment, and Monitoring activities components of the framework considered for this study. Methodologically, out of the 60 questionnaires, surveys distributed to the banks 37 copies received representing a 61.7% response rate. Statistic Package for Social Sciences (SPSS) v25 used to analyze data by running among other reliability tests, tests of normality, and descriptive statistics. The results of means and standard deviations gained ascertained that; strong controls existed in the control environment, risk assessment, and monitoring activities of internal control of the Ghanaian listed banks. A risk assessment had a low average mean compared to the control environment and monitoring activities. Because banks operate under higher risk than any other financial institution, we propose that Ghanaian listed banks should increase investment in risk assessment.

scholarly journals EVALUASI SISTEM PENGENDALIAN INTERN PEMERINTAH ATAS PELAYANAN PERIZINAN PADA DINAS PENANAMAN MODAL DAN PELAYANAN TERPADU SATU PINTU DAERAH PROVINSI SULAWESI UTARA

2020 ◽  
Vol 15 (4) ◽  
pp. 541
Author(s):  
Magfirah Rahman ◽  
Grace B. Nangoi ◽  
Stanley Kho Walandouw
Keyword(s):  
Risk Assessment ◽  
Control System ◽  
Internal Control ◽  
Government Regulation ◽  
Central Government ◽  
Control Environment ◽  
North Sulawesi ◽  
Internal Control System ◽  
Information And Communication ◽  
Monitoring Activities

Government in carry out public services such as licensing service or other services not escape the chances of risks, such as fraud and maladministration, then to minimize this risks, it takes an integral system that can control the implementation of service. Government Internal Control System (GICS) implementation whole in the central government and local government. GICS has an important role in the implementation of services by government agencies. The purpose of research was to evaluate internal control on licensing service in the Investment and One Stop Integrated Service Office of North Sulawesi based of Government Regulation Number 60 of 2008 regarding Government Internal Control System (GICS) consists of five components; control environment, risk assessment, control activities, information and communication and monitoring activities. The type of research used qualitative descriptive method. Data were collected by observation, interviews and documentation. The results showed that component of control activities which is physical asset was not in accordance with Government Regulation Number 60 of 2008, this difference because the security of assets was not running well. For other components, such as control environment, risk assessment, information and communication and monitoring activities, evaluation results indicate it was in accordance with Government Regulation Number 60 of 2008.

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

The Effectiveness of Internal Control Systems of Banks. The Case of Ghanaian Banks

2014 ◽  
Vol 4 (2) ◽  
pp. 377 ◽  
Author(s):  
Philip Ayagre ◽  
Ishmael Appiah-Gyamerah ◽  
Joseph Nartey
Keyword(s):  
Social Sciences ◽  
Control Systems ◽  
Internal Control ◽  
Internal Controls ◽  
Control Environment ◽  
Internal Control System ◽  
Monitoring Activities ◽  
Analyse Data ◽  
Strongly Agree ◽  
System Effectiveness

This study evaluated the control environment and monitoring activities components of Internal Control Systems of Ghanaian Banks using COSO’s principles and attributes of assessing the effectiveness of internal control systems. A five point Likert scale was used to measure respondent’s knowledge and perception of internal controls and the bank’s internal control system effectiveness. Responses ranged from strongly disagree to strongly agree, where 1 represented strongly disagree (SD) and 5 represented strongly agree (SA). Statistical Package for Social Sciences (SPSS) was used to analyse data and presented in the form of means and standard deviations for each question and each section of the questionnaire. The study found out that, strong controls exist in the control environment and monitoring activities components of the internal control systems of banks in Ghana. The two components were highly rated by respondents with average means of 4.72 and 4.66 respectively. The study recommended that boards of banks in Ghana should not be complacent about the findings but should work hard to   ensure continuous ongoing and separate internal control monitoring to ascertain that controls really exist and are functioning properly.

scholarly journals INTERNAL CONTROL PRACTICES OF MOSQUES IN JAVA, INDONESIA

2020 ◽  
Vol 17 (1) ◽  
Author(s):  
Nining Islamiyah ◽  
◽  
Siti Siraj ◽  
Ahmad Osman ◽  
◽  
...  
Keyword(s):  
Risk Assessment ◽  
Data Collection ◽  
Internal Control ◽  
Internal Controls ◽  
Control Environment ◽  
Information And Communication ◽  
Monitoring Activities

Internal controls are necessary tools to help organisations attain organisational goals. Lack of these controls could lead to fraudulent activities, which hamper the achievement of organisational goals. Thus, this study aims to investigate the internal control practices in the selected Indonesian mosques. Two mosques were chosen for the purpose of this study; Mosque A and Mosque B. The study employs Committee of Sponsoring Organization (COSO, 2013) framework of internal controls to frame the investigation of internal control practices in these two mosques. Data collection was undertaken through interviews and reviews of relevant documents. The findings reveal that the two selected mosques; Mosque A and B, have five mechanisms of internal control practices in place. These include control environment, risk assessment, control activities, information and communication, and monitoring activities. This study concludes that internal control practices are a necessary process to support the accountability of the mosque. The results of this study could be used as potential reference for the improvement of internal control practices in the Indonesian mosques.

Internal Control System in Cooperative Society

2019 ◽  
pp. 276-301
Author(s):  
Norfaizah Manjah ◽  
Radiah Othman ◽  
Haslinda Yusoff
Keyword(s):  
Risk Assessment ◽  
Internal Control ◽  
Audit Committee ◽  
Control Environment ◽  
Internal Auditors ◽  
Fraud Risk ◽  
Cooperative Society ◽  
The Board Of Directors ◽  
Assessment And Monitoring ◽  
The Relationship

The increasing number of recent fraud cases involving the board of directors and top management in cooperative societies has raised concerns about the effectiveness of internal control systems (ICS) in these organizations. This chapter aims to examine the relationship between the effectiveness of the ICS and the likelihood of fraud occurrence by focusing on the control environment, risk assessment, and monitoring activities of cooperative societies in Malaysia. The results showed that the effectiveness of the control environment, risk assessment, and monitoring had no significant relationship with the likelihood of fraud occurrence in these organizations. However, this does not necessarily mean that the fraud risk is not an emerging issue. The study proposes that the internal auditors and audit committee oversee a pro-active fraud prevention check-up, as suggested by the Association of Certified Fraud Examiners (ACFE), which is to be implemented in co-operative societies to assess how vulnerable the organizations are to fraud.

IMPLEMENTASI SISTEM PENGENDALIAN INTERNAL PADA PERUSAHAAN JASA

2019 ◽  
Vol 2 (2) ◽  
pp. 110
Author(s):  
Wahyu Wahyu Wahyu ◽  
Marliyati Marliyati Marliyati ◽  
I. Nyoman Romangsi
Keyword(s):  
Risk Assessment ◽  
Operating Procedure ◽  
Internal Control ◽  
Standard Operating Procedure ◽  
Control Environment ◽  
Service Company ◽  
Standard Operating ◽  
Information And Communication

The aim of this article is to analyze internal control in service company. The analyze used the components of internal control according to COSO: control environment, risk assessment, control activities, information and communication, monitoring. Analysis of internal control used the data obtained through observation, questionnaires, interview, and documentary. Based on this analysis results can be concluded, that the dual positions refer with company SOP (Standard Operating Procedure). Separation of task does not work because that the dual positions. Therefore, the component of control activities applied at company is not in accordance with the component of control activities according to COSO. Nonconformity components still results in very effective internal control because the purpose of the internal control still remains to be achieved even though there are components that are not in accordance with the internal control components according to COSO.

scholarly journals PENERAPAN SISTEM PENGENDALIAN INTERN TERHADAP PEMBERIAN KREDIT PADA PT PEGADAIAN (PERSERO) UNIT PELAYANAN CABANG KALIWUNGU

2020 ◽  
Vol 3 (1) ◽  
pp. 39
Author(s):  
Arini Amalia Rahma ◽  
Siti Mutmainah
Keyword(s):  
Risk Assessment ◽  
Control System ◽  
Internal Control ◽  
Qualitative Data ◽  
Secondary Data ◽  
Primary Data ◽  
Control Environment ◽  
Internal Control System ◽  
Information And Communication ◽  
And Control

<em>Internal control is a process carried out by the company to provide adequate guarantees for achieving control objectives. The objective of this Research is to find out the current internal control system that is applied at PT Pegadaian (Persero) Kaliwungu Branch Service in the process of granting credit. The next objective is to identify whether the components of internal control applied are according to COSO. The data used are qualitative data, primary data, and secondary data. The methods of collecting data are interview, observation, and questionnaire. For writing the Research uses descriptive and exposition methods. There are five components of internal control according to the Committee of Sponsoring Organization (COSO), they are Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring. The results of the discussion in the Research shows that the application of the internal control system for granting credit at PT Pegadaian (Persero) Kaliwungu Branch Service is in accordance with COSO internal control component, but the Control Environment and Control Activities has not been fully implemented.</em>

scholarly journals ANALISIS PENGENDALIAN INTERNAL TERHADAP PEMBAYARAN TOP UP FLAZZ PADA PT. TRANS JAKARTA

2020 ◽  
Vol 8 (1) ◽  
pp. 21-33
Author(s):  
Andriyan Andriyan ◽  
Ridwan Saleh
Keyword(s):  
Risk Assessment ◽  
Qualitative Analysis ◽  
Internal Control ◽  
Environmental Control ◽  
Internal Controls ◽  
Billing Data ◽  
Bus Stop ◽  
Assessment And Monitoring ◽  
Transportation Company ◽  
Control Risk

PT. Transjakarta is a transportation company that uses an electronic ticket system. The ticket system at the Transjakarta bus stop since 2013 uses an electronic card (e-ticketing), instead of cash. One of these cards is the Flazz card issued by Bank BCA. However, the cash deposit from the sale of the flazz top up from Transjakarta to Bank Bca still experiences constraints, there is a difference every day. Then the need for internal control in the payment process and reconciliation between Bank Bca billing data and top up cash payments in the Transjakarta. So far the two reports that should have been balanced, in fact never happened. That is why reconciliation is needed and the causes of the differences are sought so that a balanced report can be produced. This study aims to determine the implementation of internal control on the concept of components according to COSO. The author uses descriptive methods with the type of qualitative analysis, by reviewing the application of elements of internal control by describing the facts that exist in the field, and analyzing the application of these elements with reference to COSO. The results show that in general the internal controls applied for top up flazz payments have met and are in accordance with the concepts and principles of internal control according to COSO. However, the implementation of the concept of internal control components needs to be refined to be more effective, namely the environmental control, risk assessment and monitoring components.

scholarly journals Efektivitas Pengendalian Intern Piutang Usaha dengan Menggunakan Pendekatan COSO

2019 ◽  
Vol 6 (02) ◽  
pp. 31-44
Author(s):  
Iswahyudi ◽  
Dwi Prastowo Darminto
Keyword(s):  
Risk Assessment ◽  
Internal Control ◽  
Environmental Control ◽  
Jel Classification ◽  
Control Environment ◽  
Control Activity ◽  
Accounts Receivable ◽  
Activity Component ◽  
Information And Communication ◽  
Spss Software

ABSTRACT The The purpose of this study was to determine the effectiveness of internal control of receivables at PT. Phar Indonesia is based on five components of COSO, namely the control environment, risk assessment, control activities, information and communication, and monitoring. The analytical method uses descriptive qualitative on the accounts receivable internal control questionnaire which refers to the COSO framework on the components of internal control. (Supported by SPSS Software Version. 24). The results showed that the risk assessment component was less effective, while the environmental control component, the control activity component, the information and communication component, and the monitoring component were effective. ABSTRAK Tujuan penelitian ini adalah untuk mengetahui efektivitas pengendalian intern piutang pada PT. Phar Indonesia berdasaarkan lima komponen COSO, yaitu lingkungan pengendalian, penilaian risiko, aktivitas pengendalian, informasi dan komunikasi, dan pemantauan. Metode analisis menggunakan deskriptif kualitatif terhadap kuesioner pengendalian intern piutang usaha yang mengacu pada kerangka kerja COSO pada komponen-komponen pengendalian intern. (Program SPSS Versi. 24). Hasil penelitian menunjukkan bahwa komponen penilaian risiko kurang efektif, sedangkan pengendalian lingkungan intern, pengendalian aktivitas intern, informasi intern dan komunikasi intern, dan pengawasan intern perusahaan semua efektif. JEL Classification : M10, M41  

scholarly journals Impact of Internal Control on Audit Program Effectiveness: The Case of Vietnam

2018 ◽  
Vol 10 (9) ◽  
pp. 1
Author(s):  
Thi Que Nguyen ◽  
Manh Dung Tran ◽  
Thi Viet Ha Hoang
Keyword(s):  
Risk Assessment ◽  
Internal Control ◽  
Program Effectiveness ◽  
Environmental Control ◽  
Control Environment ◽  
Internal Auditors ◽  
Internal Control System ◽  
And Control ◽  
The Relationship ◽  
Audit Program

This research is conducted to examine the relationship between components of risk assessment, environmental control and control activities of internal control system and the effectiveness of the audit program in Vietnamese firms. Data were collected by sending questionnaires to management, internal auditors, and accountants of Vietnam firms and feedback of 87 responses. By testing Cronbach’s Alpha, Exploratory Factor Analysis (EFA), Analysis of Variables (ANOVA), the results show that control environment, risk assessment and control activities contribute significantly to an effective audit program. These results indicate that Vietnamese firms lack required experiences to cope with the current instruments of internal control assessment.

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