scholarly journals The Effectiveness of Enterprise Risk Management and Internal Audit Function on Quality of Financial Reporting in Universities

2017 ◽  
Vol 9 (4) ◽  
pp. 230
Author(s):  
Wadesango N ◽  
Mhaka C.
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Reporting ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
State Universities ◽  
Internal Audit Function ◽  
Enterprise Risk ◽  
The Impact

This study examined the impact of enterprise risk management (ERM) and internal audit function (IAF) on the financial reporting quality (FRQ) of state universities in Zimbabwe. Utilizing a dataset of 250 respondents from across nine (9) state universities, the researchers examined the effectiveness of ERM and the IAF on the quality of financial reporting in state universities. The researchers employed the contingency theory and studied each university separately to report on items that are specific to each and then also establish a commonality in the definition of parameters to be used in setting up the benchmark against which future performance may be measured. The findings were that there is a strong and significant relationship between ERM and the FRQ and also that there is a positive relationship between the internal audit function and FRQ. Quality internal audit results improved corporate governance systems. The results also underscore the significance and need for central government to establish and monitor a system of good ERM processes that minimize corporate governance breaches and enhance integrity and independence in financial reporting in state universities.

scholarly journals The Effectiveness of Enterprise Risk Management and Internal Audit Function on Quality of Financial Reporting in Universities

2017 ◽  
Vol 9 (4(J)) ◽  
pp. 230-241
Author(s):  
Wadesango N ◽  
Mhaka C.
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Reporting ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
State Universities ◽  
Internal Audit Function ◽  
Enterprise Risk ◽  
The Impact

This study examined the impact of enterprise risk management (ERM) and internal audit function (IAF) on the financial reporting quality (FRQ) of state universities in Zimbabwe. Utilizing a dataset of 250 respondents from across nine (9) state universities, the researchers examined the effectiveness of ERM and the IAF on the quality of financial reporting in state universities. The researchers employed the contingency theory and studied each university separately to report on items that are specific to each and then also establish a commonality in the definition of parameters to be used in setting up the benchmark against which future performance may be measured. The findings were that there is a strong and significant relationship between ERM and the FRQ and also that there is a positive relationship between the internal audit function and FRQ. Quality internal audit results improved corporate governance systems. The results also underscore the significance and need for central government to establish and monitor a system of good ERM processes that minimize corporate governance breaches and enhance integrity and independence in financial reporting in state universities.

scholarly journals Contribution of enterprise risk management and internal audit function towards quality of financial reporting in universities in a developing country

2017 ◽  
Vol 7 (2) ◽  
pp. 170-176 ◽  
Author(s):  
Newman Wadesango ◽  
Charity Mhaka ◽  
Ongayi Vongayi Wadesango
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Reporting ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
Internal Audit Function ◽  
Enterprise Risk ◽  
Governance Processes ◽  
State Enterprises

Quality of financial reporting is limited to issues of compliance to statutory provisions under which state enterprises in Zimbabwe operate, usefulness of the reports produced and their impact on the national fiscus. It is thus measured by way of compliance to these expectations and is indicated by way of a disclosure index signifying the presence of each of the expected aspects. This study therefore sought to establish the contribution of enterprise risk management and internal audit function towards the quality of financial reporting in universities in Zimbabwe. The study adopted a desktop analysis where relevant literature was reviewed. Quality of internal audit function was found to influence quality of financial reporting in that the strength, or quality, of the IAF will contribute to a distinctly different control environment depending on the strength of the good corporate governance in the university. Findings of this desktop research have undoubtedly revealed the gaps in the governance processes in state universities and it is envisaged that a careful analysis of these lacunas will provide a guide in the development of strategies and policy that strengthen state enterprise governance processes. It is hoped that this will help the parent ministry in charge of state enterprises, and, the relevant management of specific state enterprises to determine the magnitude of resources and efforts for implementation of efficient and effective enterprise risk management, internal audit function and corporate governance systems.

scholarly journals IMPACT OF GOOD CORPORATE GOVERNANCE TOWARDS CORPORATE VALUE WITH ENTERPRISE RISK MANAGEMENT AS MODERATING VARIABLE (EMPIRICAL STUDY OF FINANCIAL COMPANIES LISTED IN IDX FOR THE PERIOD 2017-2019)

2021 ◽  
Vol 13 (1) ◽  
pp. 74-98
Author(s):  
Lydia Sibarani ◽  
Herlina Lusmeida
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Audit Committee ◽  
Enterprise Risk Management ◽  
Managerial Ownership ◽  
Corporate Value ◽  
Good Corporate Governance ◽  
Enterprise Risk ◽  
Multiple Regression Method ◽  
The Impact

Abstract- This research aims to observe and analyze the impact of Good Corporate Governance towards Corporate Value as well as analyzing whether Enterprise Risk Management is able to moderate its impact. Good Corporate Governance is proxied by the presence of Independent Commissioners, Audit Committee, as well as Managerial Ownership. The population of this research includes all financial companies that publish their annual report in Bursa Efek Indonesia (BEI) over the period of 2017-2019. Data were analyzed using the multiple regression method and the moderated regression analysis. The result of this research found that Independent Commissioners and Audit Committee gives positive and significant impact towards Corporate Value while Managerial Ownership gives negative and insignificant impact towards Corporate Value. Enterprise Risk Management is not able to moderate the impact of Independent Commissioner and Managerial Ownership towards Corporate Value but is able to moderate the impact of the Audit Committee towards Corporate Value. Keywords: Audit Committee; Corporate Value; Corporate Governance; Independent Commissioner; Managerial Ownership

scholarly journals Aligning Corporate Governance with Enterprise Risk Management Adoption in the Nigerian Deposit Money Banks

2017 ◽  
Vol 1 (2) ◽  
pp. 4-14
Author(s):  
Ishaya John Dabari ◽  
Sini Fave Kwaji ◽  
Mohamad Zulkurnai Ghazali
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Structural Equation ◽  
Internal Audit ◽  
Policy Formulation ◽  
Enterprise Risk Management ◽  
Equation Modeling ◽  
Survey Method ◽  
Cross Sectional ◽  
Enterprise Risk

The alarming rate of corporate failures as seen universally has necessitated this study apparently; the failures have known no boundary as it cuts across both the very big organizations and the very small corporate entities especially financial industries. The objective of this study is to align corporate governance (CG) with Enterprise Risk Management (ERM) adoption in the Nigeria Deposit Money banks (DMBs). The study adopted cross-sectional research design, survey method and questionnaire technique to collect data in 21 Nigerian DMBs. A total of 722 questionnaires were distributed, out of which 435 were found usable for further analysis. The research adopted Structural Equation Modeling in Stata for the data analysis. Empirical evidence suggests that internal audit effectiveness, human resource competency and top management commitment were positively significant. This implies that there is a significant positive relationship between CG and ERM adoption. Conclusively, the study has provided insightful results for the banking industry, regulators, practitioners and academia that will potentially assist in policy formulation, implementation and evaluation. Thus, a clarion calls for all the stakeholders in the industry to guarantee broad implementation of ERM in all the banks in compliance with the CBN Code of corporate governance.

scholarly journals Empirical Analysis of Joint Impact of Enterprise Risk Management and Corporate Governance on Firm Value

2018 ◽  
Vol 1 (1) ◽  
pp. 34-50 ◽  
Author(s):  
Ananth Rao
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Firm Value ◽  
Positive Impact ◽  
Gulf Cooperation Council ◽  
Shareholder Wealth ◽  
Enterprise Risk Management ◽  
System Modelling ◽  
Enterprise Risk ◽  
The Impact

This paper analyzes simultaneity and endogeneity of ERM and Corporate Governance. It assesses quantitative relationship between Corporate Governance, ERM and value of the firm. The research results provide quantitative justifications for the boards to make investments in ERM and Corporate Governance initiatives for improved shareholder wealth.  3SLS-IV system modelling was applied on 2004-11 data of Gulf Cooperation Council financial institutions. Our research confirms the simultaneity and endogeneity of Corporate Governance, ERM and Firm Value determinants. Firm value is jointly and positively impacted by ERM & Corporate Governance initiatives although the impact was less significant. Unexpectedly, ERM initiative was significantly and negatively impacted by determinants such as intangibility, and profitability. Firm size was the only determinant that showed significant and positive impact on firm value. Relative to UAE the corporate governance mechanism was active in Bahrain, Saudi Arabia, Kuwait and Oman firms. Further, the existence of audit committees in the GCC firm’s boards and ERM adoption significantly positively impacted the corporate governance by 3.42% and 1.7239% respectively. Keywords: Corporate Governance, Enterprise Risk Management, Firm Value, Simultaneity, Endogeneity, Gulf Cooperation Council (GCC) economies. JEL codes: C15, C21, C51, D57, F30, G21, G32, G34, K22, L21, M31, M41, N25, O16

scholarly journals The effect of applying COSO-ERM model on reducing fraudulent financial reporting of commercial banks in Jordan

2018 ◽  
Vol 13 (2) ◽  
pp. 107-115
Author(s):  
Abdul Aziz A. Abdul Rahman ◽  
Othman Hel Ajmi Al-Dhaimesh
Keyword(s):  
Risk Management ◽  
Financial Reporting ◽  
Internal Control ◽  
Commercial Banks ◽  
Audit Committee ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
Fraudulent Financial Reporting ◽  
Corporate Governance Mechanisms ◽  
Enterprise Risk

This study aims to test the effect of applying the model of the Committee Sponsoring Organizations for enterprise risk management (COSO-ERM) on reducing fraudulent financial reporting in commercial banks operating in Jordan. Furthermore, the study identifies the role of each board of directors, audit committee, executive management, human resource management, and internal audit as one of the corporate governance mechanisms in enhancing the effectiveness of internal control systems. The study revealed an impact of applying the Committee of Sponsoring Organizations model for enterprise risk management (COSO-ERM) on preventing fraudulent financial reporting, where it reached influence around 77.8% on the dependent variable (fraudulent financial reporting). The study also found that each of internal control, event identification, risk assessment and response, and control activities variables affects dependent variable (fraudulent financial reporting) in commercial banks operating in Jordan.

Core and Legitimate Roles of Internal Audit Function and Enterprise Risk Management: Propositions for Future Research

2019 ◽  
Vol 10 (9) ◽  
pp. 891-901
Author(s):  
Suaad Jassem ◽  
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Corporate Scandals ◽  
The Core ◽  
Enterprise Risk ◽  
Core Components ◽  
The Impact

In the aftermath of global corporate scandals at the start of the new millennium government policy makers and international regulatory organizations launched several initiatives to anticipate and mitigate the impact of enterprise risk that can seriously damage economies of nations and bankrupt globally recognized companies. The typical roles of internal auditors have failed to prevent frauds and financial crimes from taking root in organizations. As a result, paradigms such as Enterprise Risk Management took centre-stage and became vital considerations and organizations such as the Institute of Internal Auditors along with other global platforms such as the Committee of Sponsoring Organizations of the Treadway Commission to address the issue of enterprise risk. However, despite all these measures new corporate scandals have emerged, inviting scope for further investigation on matters such as how defined internal audit functions relate to Enterprise Risk Management. This paper proposes a conceptual link between the core and legitimate roles of internal auditor function and enterprise risk management. The roles of internal auditor function are based on the Institute of Internal Auditors Position Paper (2009) and the core components of Enterprise Risk Management are identified based on the Committee of Sponsoring Organizations (2017) Enterprise Risk Management Integrated Framework. This study further proposes a set of propositions suggesting the possible association of the core and legitimate roles of internal auditors on the five core components of Enterprise Risk Management. The output of this study is expected to lay the foundation for further empirical studies to develop a finer-grained understanding of how internal auditor function roles relate to Enterprise Risk Management implementation.

The Association between Enterprise Risk Management and Corporate Governance Quality: The Mediating Role of Internal Audit Performance

2018 ◽  
Vol 9 (4) ◽  
pp. 1387 ◽  
Author(s):  
Fairouz Mohammed MUSTAFA ◽  
Munther Barakat AL-NIMER
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Structural Equation ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
Mediating Effect ◽  
Enterprise Risk ◽  
Governance Quality ◽  
Corporate Governance Quality ◽  
Audit Performance

The purpose of this study is to evaluate the association of enterprise risk management and quality of corporate governance. In this aspect, the internal audit performance has been analyzed as the mediating force in organizations. The problem of this study identified from the fact that corporate governance in Jordan is diagnosed with symptoms of health hazards in areas of laws. Yet, enterprise systems proved its benefits. Therefore, the aim of this research is to examine this association. The population covers all firm listed on Amman stock exchange, the sample consists of 168 firms, they have been chosen based on the existence of risk management system. The respondents are risk management specialists and internal auditors. Structural equation model is used for the statistical analysis. The results reveal a direct positive relationship between enterprise risk management and corporate governance quality. It also reveals a partial mediating effect of the internal audit performance, since the relationships become more justified. The findings highlight that organizations require implementing different practice for effectively allocating resources in adopting enterprise risk management. It also emphasized on that the firms should take into consideration human factors of usability before the adoption. Beside, it is considered as a first international study examine the relations in this frame.

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