scholarly journals Peran Auditor Internal dalam Meningkatkan Value Perusahaan dan Tantangannya Di Masa Depan: Suatu Tinjauan Teoritis

2016 ◽  
Vol 3 (2) ◽  
pp. 77-88
Author(s):  
Sugiyarti Fatma Laela
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Internal Control ◽  
Internal Audit ◽  
Technical Knowledge ◽  
General Technical

Lingkungan bisnis yang semakin dinamis yang berdampak pada perubahan operasional bisnis juga direspon oleh audit internal. Audit internal yang pada awalnya difokuskan sebagai penilai independen, kemudian semakin luas fungsi dan perannya untuk memastikan efektifitas internal control dan selanjutnya aktif terlibat dalam proses risk management yang merupakan bagian dari corporate governance. Dengan metode kajian literatur, tulisan ini akan membahas peran penting auditor internal dalam meningkatkan nilai perusahaan. Selain keterlibatannya dalam pengembangan sistem pengendalian internal, hasil pekerjaan auditor internal sangat menentukan reliance ekternal audit dan komite audit dalam mengevaluasi dan memeriksa kinerja manajemen. Pekerjaan audit internal menjadi semakin komplek dan rumit yang dapat mempengaruhi kualitas pekerjaannya. Seiring dengan semakin diversified-nya organisasi dan kemajuan teknologi auditor internal dituntut untuk menguasai pengetahuan yang beragam dan mendalam baik dari sisi general technical knowledge maupun specific technical knoweldge sesuai dengan industrinya. Oleh karena itu, tulisan ini juga akan membahas indikator kualitas auditor, tantangan yang dihadapi serta solusinya. Salah satu upaya peningkatan kualitas kerja auditor internal adalah melalui outsourcing fungsi audit  internal.

scholarly journals Internal auditor’s contribution to good corporate governance: An empirical analysis for the one-tier governance system with a focus on the relationship between internal audit function and audit committee

2015 ◽  
Vol 13 (1) ◽  
pp. 141-151 ◽  
Author(s):  
Marc Eulerich ◽  
Patrick Velte ◽  
Jochen Theis
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Internal Control ◽  
Audit Committee ◽  
Control Function ◽  
Central Element ◽  
Internal Audit ◽  
Governance Structure ◽  
Governance System ◽  
Good Corporate Governance

The effectiveness and efficiency of the corporate governance structure depends on different governance bodies within the organization. As crucial parts of good corporate governance they provide constituting, monitoring and controlling tasks concerning the risk management and internal control system. These corporate governance mechanisms include the internal control function (IAF) and the audit committee (AC). Based on a dataset of 550 responses from U.S. internal auditors, our study explores empirically the IAF’s contribution to good corporate governance. Our results suggest that the IAF constitutes a central element of the governance structure. Furthermore, an intensive interaction between the IAF and the AC is positively linked with the efficiency and effectiveness of the governance processes, internal controls and risk management.

scholarly journals THE WAYS TO IMPROVE THE CORPORATE GOVERNANCE OF BANKS

2021 ◽  
pp. 29-33
Author(s):  
N. A. Glinkov
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Internal Control ◽  
Internal Audit ◽  
Staff Management ◽  
Communication Plan ◽  
Management Processes ◽  
Information And Communication

The ways of improving the systems of corporate governance of banks are outlined. In the context of corporate governance, directions of development in the field of finance and staff management are designated. Mechanisms for improving management processes are suggested. Aspects of the necessary work in the information and communication plan are indicated. The steps are described to improve the efficiency of internal audit in banks, the efficiency of risk management and internal control.

Effect of Financial Control Mechanisms on Performance of Income Generating Units in Selected Public Universities in Kenya

2019 ◽  
Vol 3 (V) ◽  
pp. 286-304
Author(s):  
Shadrack Musunkui Towett ◽  
Isaac Naibei ◽  
Williter Rop
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Public Universities ◽  
Management Strategies ◽  
Internal Audit ◽  
Simple Random Sampling ◽  
Target Population ◽  
Control Measures ◽  
Financial Control ◽  
Control Mechanisms

In an attempt to bridge the gap between the budgetary allocations and actual expenditures most universities have started income generating units with the aim of boosting their operational expenses. Whereas there is the potential of the use of Income Generating Units (IGUs) to generate additional funds, most universities still experience challenges in full implementation and realization of the revenue goal. This study therefore sought to determine the financial control mechanisms affecting performance of income generating units among selected public universities. The study sought to determine the effect of internal controls, credit policies, financial risk management and internal audit on performance of income generating units in selected universities. Targeted population was all the 290 employees in the IGU departments of selected public universities. The respondents were sampled using simple random sampling so as to enable equal representation of the target population without any biasness. Data collection was done using the questionnaire to ensure sufficient data was collected from the respondents. Descriptive statistics assisted in the determination of respondent’s views and opinions on every variable. Qualitative data was analysed using content analysis into meaningful, precise and comprehensive statements and presented in quotations. Data analysis was done using SPSS version 21 and data presented in form of figures and tables. The study ensured that all ethical considerations were considered by the study. The findings were that most employed Income Generating Units in Public Universities were Collection of rental fees, Evening and executive programs and Trainings of both short and long courses while the least was established to be Sales of memorabilia and books. All the financial control mechanism investigated namely internal audit, internal control measures, risk management strategies and credit policies had large extents of adoption in the selected universities. The results of the regression analysis showed that the financial control mechanisms investigated had a significant positive relationship on performance of the IGUs. Specifically, 47% of the variation of the performance of IGUs was established to be explained by the studied factors. The study concluded that the performance of the IGUs among the selected public universities was largely accounted for by the implemented financial control measures. Therefore effective financial control mechanisms is concluded to lead to better IGU performance whereas shortcomings in the financial control mechanisms is concluded to lead to diminished returns in the IGUs. The study recommended that the management in charge of the IGU department in the public universities to prioritize the formulation, implementation and monitoring of financial control mechanisms in the IGUs. To facilitate effective financial controls, the study recommended that the management especially those in the audit section to conduct regular checks and inspections on the IGUs. Additionally, frequent reforms were recommended to address the shortcomings experienced in integrating financial control measures in IGUs.

The Role of Accounting Mechanisms for Corporate Governance in Reducing Creative Accounting Practices in Telecommunications Sector Companies in Riyadh City: An Empirical Study: دور الآليات المحاسبية لحوكمة الشركات في الحد من ممارسات المحاسبة الإبداعية في شركات قطاع الاتصالات بمدينة الرياض: دراسة ميدانية

2020 ◽  
Vol 4 (15) ◽  
Author(s):  
Lamis Jameel Banasser, Maha Faisal Alsayegh
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Audit Committee ◽  
Internal Audit ◽  
Internal Auditors ◽  
External Auditors ◽  
Riyadh City ◽  
Creative Accounting ◽  
Telecommunications Sector

The study aimed to identify the role of accounting mechanisms for corporate governance in reducing creative accounting practices in telecommunications sector companies in Riyadh city. A descriptive analytical approach was followed to conduct the field study. Sample of the study consisted of members of the audit committee, internal auditors, accountants from the surveyed telecommunications’ sector companies, and the external auditors in the audit offices that specialized on auditing the examined sample of companies. Questionnaire was used as a data collection method. Results showed that activating the role of accounting mechanisms for corporate governance can greatly contribute in limiting creative accounting practices. As they are controlling mechanisms that capable of protecting companies, shareholders and stakeholders from any manipulation or misleading information in the financial statements. Further, internal audit plays a major role in limiting creative accounting practices by examining and evaluating the effectiveness of the internal control system. Furthermore, the independence and competence of the external auditor and his commitment to the rules of conduct and ethics of the profession contribute greatly in limiting creative accounting practices in the examined companies. The study recommended the necessity of holding specialized training courses for members of audit committees, internal auditors and external auditors on methods of detecting creative accounting practices to combat and reduce them.

scholarly journals Factors affecting the voluntary use of internal audit: evidence from the UK

2018 ◽  
Vol 33 (3) ◽  
pp. 288-317 ◽  
Author(s):  
Hazem Ramadan Ismael ◽  
Clare Roberts
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Internal Control ◽  
Audit Committee ◽  
Internal Audit ◽  
Theoretical Framework ◽  
Policy Implications ◽  
Content Type ◽  
Factors Affecting ◽  
The Uk

Purpose This study aims to identify the factors that lead non-financial companies listed in the UK to use an internal audit function (IAF) as a monitoring mechanism. Although the use of an IAF in the UK is voluntary, no prior research has examined the drivers for using one. Design/methodology/approach Financial and non-financial data were collected from the annual reports of 332 UK non-financial companies listed on the London Stock Exchange (LSE) Main Market. Univariate tests and multivariate logistic regression tests were used to test the research hypotheses. A theoretical framework based on both agency theory and transaction cost economics (TCE) theory was used to explain the economic factors affecting the use of an IAF. Findings The study provides evidence that firm size, level of internal risks, agency problem between owners and managers and existence of an effective audit committee are associated with the existence of an IAF. Thus, the need to have strong internal control and risk management systems and to reduce both internal and external agency costs drives companies to have an IAF. These results suggest the importance of IAF as an internal corporate governance tool and the effectiveness of UK governance regulations in monitoring the effectiveness of internal control systems. Practical implications Given the importance of the IAF’s corporate governance role, the study provides some policy implications. Regulators should pay more attention to the issue of maintaining an IAF, especially by large companies, the relationship between the IAF and other governance parties, especially the audit committee, and the disclosure of more relevant information about the IAF’s characteristics and practices. Originality/value This is the first study to examine the factors affecting the existence of the IAF within the UK’s distinctive regulatory approach of “comply or disclose reasons”. Furthermore, it provides a theoretical framework that explains how both the agency theory and TCE theory can interpret the adoption of internal audit.

Can internal audit functions improve firm operational efficiency? Evidence from China

2020 ◽  
Vol 35 (8) ◽  
pp. 1167-1188
Author(s):  
Ying Chen ◽  
Bin Lin ◽  
Lizhen Lu ◽  
Gaoguang Zhou
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Internal Audit ◽  
Operational Efficiency ◽  
Alternative Measure ◽  
Maturity Model ◽  
Firm Level ◽  
Content Type ◽  
Internal Auditors ◽  
The Relationship

Purpose The purpose of this study is to examine the effects of internal audit function (IAF) quality on the operational efficiency of Chinese firms. Design/methodology/approach The authors use regression models with a sample of Chinese listed companies to test their research hypotheses. Findings The authors find that IAF quality is positively associated with firm operational efficiency. The result is unchanged after correcting for endogeneity via the instrumental variable method and using an alternative measure of firm operational efficiency. The authors show that IAF competence improves firm operational efficiency, but the relationship between IAF independence and firm operational efficiency is insignificant. Additionally, they find that IAF quality can only significantly improve firm operational efficiency in the presence of effective corporate governance at the firm level and strong institutions at the province level. Using path analysis, the authors find that an IAF can improve firm operational efficiency directly or indirectly by promoting firm internal control quality. Practical implications The findings of this study suggest the need for a balance between IAF competence and independence to achieve the goals of IAF. Additionally, the authors study suggests that the effectiveness of IAF is contingent on corporate governance and market-based institutions. Originality/value The study’s findings contribute to the burgeoning literature on the relationship between IAF and firm operational performance and deepen the authors’ understanding of the role of IAF in an emerging economy whose government plays a major role in promoting and enforcing internal audits. The study also empirically support the Internal Audit Governance Maturity Model proposed by the Institute of Internal Auditors.

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