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

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.

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

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.

scholarly journals Effect of Internal Control System on Risk Assessment in the Nigeria Public Sector (A Study Answer Prepared)

2019 ◽  
Vol 05 (12) ◽  
pp. 714-724
Author(s):  
Muhammad Barkindo Umar ◽  
Jeremiah Yusuf Karfe ◽  
Gambo Sule ◽  
Ado Ahmed
Keyword(s):  
Risk Assessment ◽  
Control System ◽  
Public Sector ◽  
Internal Control ◽  
Internal Control System

Is it suitable for your local governments?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nanang Shonhadji ◽  
Ach Maulidi
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Control System ◽  
Public Sector ◽  
Local Government ◽  
Control Systems ◽  
Internal Control ◽  
Internal Controls ◽  
Content Type ◽  
Fraud Mitigation

Purpose The purpose of this study is to extend existing theory by developing a contingency theory for the public sector and to provide a landscape for local government to deal with white-collar crime. In recent years, the theme of risk management and internal controls, which is popular in the industry and private sector, has been mirrored by public sector organisations. Of course, it is to improve fraud risk control systems. We have to accept that public sector organisations have a growing need to control the (fraud) risks in a rapidly changing economic environment. Within this situation an effective internal control is becoming strategically important in many organisations, as it is proving to be a cost-efficient way to manage these risks in everyday operations. Here, the authors conducted a case study on the risk management control system at an Indonesian local government. Design/methodology/approach This study uses mixed methods, integrating quantitative and qualitative data – in-depth interviews and questionnaires were required to address the social phenomenon being investigated. Findings This study found that the structure of the control system fits a generic model, in which control systems are fundamental factors to all departments. It shows that control systems can support managers to align employee capabilities, activities and performance with the organisation’s goals and missions. In addition, the authors could identify, risk assessment and monitoring activities are effective measures of controlling organisation’s activities, and potentially could diagnose potential (fraud) risks, deterring to the achievement of organisational aims. Ideally, those aspects should be performed on a continuous basis if organisations want to prevent the spread of numerous potential menaces. In other words, if an organisation fails to carry out risk assessment correctly, it will result in unidentified possibility of fraud risks. The more explicit the risk assessment, the more effective the detection of fraud. Practical implications It can be alternative to consider Committee of Sponsoring Organizations of the Treadway Commission’s internal control as fraud mitigation in local government. Originality/value This study offers new directive discussion about internal controls as notion of fraud mitigation.

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

2009 ◽  
Vol 28 (1) ◽  
pp. 79-94 ◽  
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.

scholarly journals Moderating effect of internal control system to determinants influencing the financial statement disclosure

2021 ◽  
Vol 18 (3) ◽  
pp. 104-112
Author(s):  
Khoirul Aswar ◽  
Jumansyah Jumansyah ◽  
Sri Mulyani ◽  
Mahendro Sumardjo
Keyword(s):  
Control System ◽  
Internal Control ◽  
Local Governments ◽  
Structural Equation ◽  
Sampling Technique ◽  
Financial Statement ◽  
Government Size ◽  
Internal Control System ◽  
The Relationship ◽  
Budget Expenditure

This study examines whether the internal control system moderates the relationship among budget expenditure, government size, legislative size, and audit findings on financial statement disclosure in Indonesia. This is a quantitative study that uses the purposive sampling technique to collect data from 240 local governments in Indonesia. Data were analyzed using Structural Equation Modelling (SEM) with Smart PLS. The results show that government size, legislative size, and audit findings had a positive and significant effect on financial statement disclosure, whereas budget expenditure does not. In addition, the findings revealed that the internal control system moderates the relationship between government size and legislative size and financial statement disclosure, but not by audit findings. The study contributed to extending the institutional and agency theory that explains these factors toward disclosure in the local government in Indonesia. The findings suggest that Indonesia’s local governments consider potential factors regarding increasing pressure to carry out disclosure of financial statements, as well as increasing the proper disclosure required by applicable Indonesian regulations.

scholarly journals INTERAKSI KOMITMEN ORGANISASI TERHADAP FAKTOR-FAKTOR YANG MEMPENGARUHI KUALITAS LAPORAN KEUANGAN PEMERINTAH DAERAH

2016 ◽  
Vol 7 (2) ◽  
pp. 100-116
Author(s):  
Dina Fitri Septarini ◽  
Frans Papilaya
Keyword(s):  
Control System ◽  
Organizational Commitment ◽  
Local Government ◽  
Human Resources ◽  
Internal Control ◽  
Financial Statements ◽  
Financial Reports ◽  
Internal Control System ◽  
The Relationship

Audit BPK for the financial statements 2013 of Merauke district received a qualified opinion. This means that there are other things that should be repaired in the preparation of financial statements. Therefore, this study aimed to determine the effect of the competence of the Human Resources and internal control system to the quality of financial reports of local government, and the moderating influence of organizational commitment on the relationship between HR competencies and internal control system to the quality of financial statements of local government Merauke. This study uses a quantitative approach and the collection of primary data in this study using a survey by questionnaire to respondents selected as the sample. The population in this study is the employees of the finance department at regional work units (SKPD) of Local Government Merauke, totaling 29 SKPD. The sampling technique used is purposive sampling, ie sampling specific criteria. The data analysis technique used to test the effect of independent variables on the dependent variable regression analysis of interaction or Moderated Regression Analysis (MRA) with SPSS 20. The results showed that the Human Resource Competency positive effect on the quality of local government financial statements, Systems the internal control does not affect the quality of local government financial statements, organizational commitment moderates the relationship between human resources competencies to the quality of local government financial statements, and organizational commitment does not moderate the relationship between the internal control system to the quality of local government financial reports.

scholarly journals The Role of Government Internal Control System Quality in Moderating the Relationship of Financial Reports Quality and Local Government Performance

2021 ◽  
Vol 06 (06) ◽  
Author(s):  
Sunardi . ◽  
Keyword(s):  
Control System ◽  
Local Government ◽  
Internal Control ◽  
Local Governments ◽  
City Governments ◽  
Financial Reports ◽  
Internal Control System ◽  
The Relationship

Empirical test of the role of the quality of the internal control system in strengthening the relationship between the financial reports quality and the local governments performance in Indonesia used secondary data in the form of the BPK RI audit report and the Appendixs in the 2016 and 2018 of Regional Government Implementation Performance Evaluation Report (EKPPD). The population of 514 regency and city governments in Indonesia. The sampling technique was purposive sampling with a total of 268 regency and city governments using data for 3 years, the total sample was 804. Variable measurement used index, time dimension used panel data. The results showed that the quality of financial reports had a positive and significant effect on the local government performance, then the quality of the government internal control system (SPIP) cannot strengthen the relationship between the quality of financial reports and the performance of local governments. The research results were expected to contribute to the policy that the implementation of the local government internal control system should be the focus of the relevant agencies. The limitation of this research is the large gap score on the key performance indicator in each region EKPPD.

scholarly journals The Impact of a Procurement Implementation and Government Internal Control System on Goods/Services Procurement Fraud Prevention by Using Organization Ethical Culture as a Moderating Variable

2019 ◽  
Vol 15 (1) ◽  
pp. 69-81
Author(s):  
Arasy Ghazali Akbar
Keyword(s):  
Regression Analysis ◽  
Control System ◽  
Internal Control ◽  
Ethical Culture ◽  
Fraud Prevention ◽  
Purposive Sampling ◽  
Goods And Services ◽  
Internal Control System ◽  
The Impact ◽  
The Relationship

Abstract                                                                                     This study aims to empirically examine and prove the organization's ethical culture moderating impact on the relationship between e-procurement implementation and the government's internal control system with fraud prevention in procuring goods and services. Based on the purposive sampling method, 55 obtained samples were analyzed by using moderated regression analysis. The results show several findings, first, implementation of e-procurement has a significant effect on fraud prevention. Second, the government's internal control system has a significant effect on fraud prevention. The third and fourth findings indicate that the organization ethical culture is supported as a moderating variable. Keywords: e-procurement, government’s internal control system, organization ethical culture, fraud preventionPengaruh Implementasi E-Procurement dan Sistem Pengendalian Internal Pemerintah terhadap Pencegahan Fraud Pengadaan Barang/Jasa dengan Budaya Etis Organisasi sebagai PemoderasiAbstrakPenelitian ini bertujuan untuk menguji dan membuktikan secara empiris efek moderasi budaya etis organisasi terhadap hubungan implementasi e-procurement dan sistem pengendalian internal pemerintah dengan pencegahan fraud pengadaan barang dan jasa. Berdasarkan metode purposive sampling diperoleh 10 sampel OPD yang dianalisis dengan menggunakan moderated regression analysis. Hasil menunjukkan beberapa temuan, pertama implementasi e-procurement berpengaruh terhadap pencegahan fraud. Kedua, sistem pengendalian internal pemerintah berpengaruh terhadap pencegahan fraud. Temuan ketiga dan keempat menunjukkan bahwa budaya etis organisasi terdukung sebagai variabel moderasi. Kata Kunci: e-procurement, sistem pengendalian internal pemerintah, budaya etis organisasi, pencegahan fraud.

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