The practical specifics of compliance procedures as part of internal control of organizations' exports

2021 ◽  
Vol 22 (4) ◽  
pp. 459-486
Author(s):  
Vilena A. YAKIMOVA
Keyword(s):  
Control System ◽  
Internal Control ◽  
Business Processes ◽  
Methodological Approach ◽  
Control Program ◽  
Compliance Control ◽  
Business Operations ◽  
Control Procedures ◽  
Bona Fide ◽  
Contractual Obligations

Subject. The article discusses compliance procedures for improving the internal control system and accommodating to the specifics of exporting enterprises' financial and business operations. Objectives. The study is intended to formulate a methodological framework of compliance control to check whether exporting enterprises are compliant with financial laws. Methods. The study is based on the methods of comparison, checkerboard analysis, planning, classification, grouping, summary and systematization. Results. I formulated a compliance control program, which would account for the specifics of the exporting enterprise's financial and business operations, business processes of the exporting activity and compliance risk (associated with taxes, customs, currency, contractual obligations). The article enlists working papers needed to summarize results of tax, currency and accounting compliance procedures. I set forth a methodological approach based on the checkerboard analysis of reconciliation and comparison of export documents. Conclusions and Relevance. Exporting enterprises need the compliance control procedures to mitigate the probability of compliance risks and eliminate financial implications, such as fines, penalties for legislative and contractual breaches. Based on the proposed compliance procedure, the compliance control system will allow the exporting enterprise to gain a positive business reputation in the Russian and foreign distribution markets, and create an image of a bona fide and law-abiding taxpayer. The findings can be used to perform internal controls at exporting enterprises.

scholarly journals BLOCK-MODULE MODEL OF AUDITING THE EFFICIENCY OF THE INTERNAL CONTROL SYSTEM

2021 ◽  
Vol 16 (1) ◽  
pp. 130-135
Author(s):  
Aksana Albekovna Turgaeva
Keyword(s):  
Control System ◽  
Internal Control ◽  
Business Processes ◽  
Insurance Companies ◽  
Insurance Company ◽  
New Approaches ◽  
Model Sets ◽  
Internal Control System ◽  
Control Procedures

The internal control system (ICS) organized in insurance companies in the context of the development of innovative processes and the digitalization of the economy does not always meet the requirements of the modern industry, which leads to the need to assess the effectiveness of the ICS and its compliance with new standards. This position involves the modernization of essential theoretical and methodological approaches to the formation and implementation of the audit model of the effectiveness of internal control of companies. The article is devoted to the issue of introducing new approaches to the performance audit of ICS in insurance companies, based on the construction of a block-modular scheme, which should be translated into certain modules. The block-modular scheme proposed by the author can be used to assess the ICS and identify the risks of insurance companies. The studies were based on the existing options for the methodological construction of assessing the effectiveness of the internal control and audit system. The presented model sets a benchmark in the field of risk assessment and verification of the internal control system. The effectiveness of the new approach in assessing the effectiveness of the ICS is evidenced by the fact that the description of the specifics of the activities of insurance companies, as well as the compilation of a register of possible risks for planning the audit of the effectiveness of the internal control system lead to remarkable results that allow truly assessing the effectiveness of the ICS. Areas and methods of audit, control procedures, relationships between business processes and relationships between employees, which were not noticed or were ranked as unimportant events, turn out to be key for the effective operation of the company and the conduct of internal control at a high professional level. The advantage of the block-modular model of the audit of the effectiveness of the ICS of the insurance company is that the correct and accurate route of the work of the controlling body is built, the control flags are correctly placed at all the stages of the audit, which implies that there are no delays at one stage or another and the identification of shortcomings in the work of the internal control. Today we are talking not at all about the quality of insurance services, but rather about the quality of the insurance business, its organization and timely adaptability to changes in the environment of the insured. In this regard, the development of the methodology for assessing the ICS of insurance companies requires new approaches and models

ORGANIZATION OF INTERNAL CONTROL IN A REMOTE WORK ENVIRONMENT

2020 ◽  
Vol 1 (9) ◽  
pp. 125-131
Author(s):  
NGUYEN THI HA MY ◽  
Keyword(s):  
Control System ◽  
Internal Control ◽  
Business Processes ◽  
Rapid Development ◽  
Remote Work ◽  
Use Of Technology ◽  
Internal Control System ◽  
Information And Communication ◽  
Control Procedures ◽  
The Russian Federation

With the rapid development and widespread use of technology, business processes are being transformed. One of the consequences of the implementation of technologies into the business is the partial transition to remote work, which made it necessary to reflect the corresponding changes in the internal control system (IC). The article is devoted to the analysis of the main shortcomings identified during the transition to the remote mode, in response to which measures are proposed to adapt the IC to the conditions of remote work. The following areas for improvement of the internal control system are identified: communication and comtrol during remote work, fraud and leakage of confidential information, failure of information systems. In response to the identified areas successful practical examples are analyzed and potential measures are proposed in the context of the elements identified in the COSO conceptual framework and methodological documents of the Ministry of Finance of the Russian Federation: control environment, risk assessment, internal control procedures, information and communication, internal control assessment.

scholarly journals ORGANIZATIONAL AND METHODOLOGICAL ASPECTS OF THE INTERNAL CONTROL OF PRODUCTS PROCESSING

2019 ◽  
pp. 121-131
Author(s):  
Vіktoriia ROZHELIUK ◽  
Sviatoslav PYTEL
Keyword(s):  
Control System ◽  
Internal Control ◽  
Business Processes ◽  
Managerial Decisions ◽  
Wide Range ◽  
Internal Control System ◽  
Functional Control ◽  
Control Procedures ◽  
Special Information ◽  
Methodological Aspects

Introduction. Control is one of the principle functions in the management system. Every decision-making, including planning and budgeting, should be controlled. The control consequences emerge as some information about disclosure of violations and some difficulties in managerial decisions fulfillment. In the general management process control appears as an element of correction retraction and it is carried out by the functional control system. Purpose. The internal control system has to maintain special information receiving which characterizes quantitative and qualitative indicators of processing enterprise activities; the effectiveness of resources using involved in the production processes of certain business and business processes. It concerns not only problems monitoring at work and personnel punishment for their divagations, it is also closely connected with management targets regarding staff work efficiency control. Internal control involves a wide range of activity depending on the aim: from ordinary amendments at the subdivision level to radical changing demands, the whole mechanism restructuring of activities in order to solve economic problems. The essence of internal control, as well as its subjects and objects in terms of measures, relating to the process of acquisition, production and products sale, can be discovered only by taking into account the industry specifics, techniques and arrangements for processing enterprises economy. Results. Such foreign and native economists as I. Bielobzhetskyi, M. Bilukha, F. Butynets, V. Derii, M. Kuzhelnyi, M. Chumachenko and Ye. Kaliuha in their scientific works research the problems of the control system mostly at the level of the whole country. However, it would be reasonable to form the organization and methodology for the internal control system at agricultural processing enterprises considering the sector specific nature. The common problem in the organization of the internal control system, specific for processing enterprises, is the lack of special units control, whereas these functions are performed mostly by accountants. Another problem to be solved is the discrepancy between control procedures technology and control purposes. Conclusions. Thus, we consider the internal control organization as its direct arrangement and improvement of the methodology and techniques in order to save property.

ORGANIZATION OF INTERNAL CONTROL IN A REMOTE WORK ENVIRONMENT

2020 ◽  
Vol 3 (8) ◽  
pp. 73-79
Author(s):  
NGUYEN THI HA MY ◽  
Keyword(s):  
Control System ◽  
Work Environment ◽  
Internal Control ◽  
Business Processes ◽  
Rapid Development ◽  
Remote Work ◽  
Use Of Technology ◽  
Internal Control System ◽  
The Russian Federation ◽  
Ministry Of Finance

With the rapid development and widespread use of technology, business processes are being transformed. One of the consequences of the implementation of technologies into the business is the partial transition to remote work, which made it necessary to reflect the corresponding changes in the internal control system (IC). The article is devoted to the analysis of the main shortcomings identified during the transition to the remote mode, in response to which measures are proposed to adapt the IC to the conditions of remote work. Identifies the following areas for improvement of the internal control system. In response to the identified areas successful practical examples are analyzed and potential measures are proposed in the context of the elements identified in the COSO conceptual framework and methodological documents of the Ministry of Finance of the Russian Federation.

Compliance control as a mechanism for ensuring the economic security of businesses in e-commerce

2021 ◽  
Vol 17 (8) ◽  
pp. 1491-1518
Author(s):  
Vilena A. YAKIMOVA ◽  
Viktor S. RADOMSKII
Keyword(s):  
Information System ◽  
Business Process ◽  
Business Processes ◽  
Economic Security ◽  
Methodological Issues ◽  
Compliance Control ◽  
Control Procedures ◽  
Risk Protection ◽  
Set Up ◽  
It Risk

Subject. The article focuses on organizational and methodological issues of internal compliance control in e-commerce businesses. Objectives. We refine the design and technique of internal compliance control for e-commerce businesses. Methods. The study relies upon methods of analysis and generalization, grouping, systematization, risk-based, systems and business process approaches. Results. We devised the five-component compliance control sysem, determined its principles and functions ensuring the economic security of e-commerce businesses. We suggest conducting compliance procedures intended to mitigate IT risks and accounting for the specifics of e-commerce business processes. Conclusions and Relevance. In e-commerce, compliance control serves for identifying and monitoring compliance risks, ensuring safe operations of businesses, which is vital for people. The information system for IT risk protection was found to underlie compliance control, while control procedures can be classified into general and applied. The findings can be used to set up a reliable and effective compliance system for e-commerce businesses in order to prevent economic abuses and crime.

THE ESSENCE, GOALS AND OBJECTIVES OF THE ANALYSIS OF THE FINANCIAL CONDITION OF AN ECONOMIC ENTITY AND ITS USE IN THE COMPLIANCE CONTROL SYSTEM

2021 ◽  
Vol 3 (11) ◽  
pp. 161-165
Author(s):  
Tatiana M. Rogulenko ◽  
◽  
Valeria V. Mironenko ◽  
Keyword(s):  
Control System ◽  
Internal Control ◽  
Financial Analysis ◽  
Corporate Management ◽  
External Influence ◽  
Compliance Control ◽  
Financial Condition ◽  
Economic Entity ◽  
Goals And Objectives

This article raises the problem of improving the analysis of the financial condition of an eco-nomic entity and its use in the compliance control system. The main tasks of using the analysis in the compliance control system in order to increase the efficiency of corporate management of the economic activity of an economic entity have been determined. It is emphasized that the analysis of the financial condition is one of the mandatory components of both internal control and compliance control, the differences in the use of the analysis results are analyzed. It is concluded that the role of financial analysis and its use in the compliance control system in order to improve the efficiency of corporate governance is constantly increasing in order to prevent compliance risks and regulatory risks due to external influence of supervisors.

scholarly journals FINANCIAL CONTROL FOR THE FUNCTIONING OF THE SYSTEM AND MECHANISM OF THE STATE FINANCIAL POLICY

2020 ◽  
pp. 38-41
Author(s):  
Natalia Botvina
Keyword(s):  
Control System ◽  
Internal Control ◽  
Agricultural Sector ◽  
Systems Approach ◽  
Financial Control ◽  
Financial Policy ◽  
Financial Flows ◽  
Financial Decisions ◽  
Control Procedures

The functioning of the financial control system should be aimed at achieving the goals set by the financial policy. The role of the financial control system is to monitor the efficiency of financial resources, the optimality of financial flows, the creation of an information base for financial decisions to address deficiencies or regulate the objectives of financial policy. Based on the application of the systems approach in the study, it should also be noted that the system of financial control does not operate in isolation, but is a subsystem of a more complex system. It is also possible that it should be distinguished between smaller subsystems. The purpose of the article is to reveal the main problems of financial control over the functioning of the system and the mechanism of financial policy. The article substantiates the functions of financial control, which should contribute to the formation and strengthening of entrepreneurship, further developed the principles of the financial control system, by substantiating the principle of limitation of the application of control procedures. Determining the place of the system of financial control in the implementation of financial policy to ensure sustainable development of the agricultural sector, we concluded that the system of internal control is a subsystem of financial policy.

scholarly journals EVALUASI PENERAPAN SISTEM PENGENDALIAN INTERN PERSEDIAAN BARANG DAGANGAN PADA TOKO MAHKOTA DIESEL MANADO

2017 ◽  
Vol 12 (01) ◽  
Author(s):  
Juwita Natalia Samuna ◽  
Harijanto Sabijono ◽  
Stanley Kho Walandouw
Keyword(s):  
Control System ◽  
Qualitative Analysis ◽  
Internal Control ◽  
Spare Parts ◽  
Accounting System ◽  
Control Environment ◽  
Analysis Method ◽  
Serial Number ◽  
Internal Control System ◽  
Control Procedures

Internal control system is a way or system that can prevent the occurrence of irregularities in the company. Internal control system of the inventory aims to protect the company's assets from theft. The research object is taken at the Manado Diesel Crown Store is one of the stores in Manado that runs the business by selling machines and spare parts. This study aims to evaluate the effectiveness of the application of internal control system merchandise inventory at Diesel Manado.The method of analysis used in this research is descriptive qualitative analysis method. Based on the results of internal control inventory of merchandise inventory at Manado Diesel Crown Store, then in the control environment that occurs in the company, there is a double position between the sales and the warehouse. In the accounting system, the documents used are not serial number printed. In control procedures, authorization system is only on certain transactions.Keywords: internal control system, merchandise inventory

Applying the process approach in setting up the system of internal control in economic entities

2021 ◽  
Vol 20 (12) ◽  
pp. 2313-2323
Author(s):  
Zhanna A. KEVORKOVA ◽  
Natal'ya G. SAPOZHNIKOVA
Keyword(s):  
Control System ◽  
Internal Control ◽  
Business Processes ◽  
Risk Identification ◽  
Process Approach ◽  
Control Practice ◽  
Economic Entity ◽  
Internal Control System ◽  
Theoretical Generalization ◽  
And Control

Subject. The article addresses the organization and implementation of process approach when setting up a system of internal control of an economic entity, which ensures the management of effectiveness of divisions’ activities. Objectives. We aim at investigating the organization of the internal control system of an economic entity, based on its activities, accounting policies, classification of business processes, and risk identification. Methods. The study rests on methods of theoretical generalization, structural grouping, logical analysis, as well as the analysis of scientific and practical literature and accounting and control practice. Results. The analysis of practices revealed a number of problems in the implementation of the process approach in the accounting and control activities of economic entities, in particular, insufficient understanding and unpreparedness of management to implement the process approach, the lack of a system for regulating business processes, the lack of interconnection between the system of control indicators and the created business processes. It is advisable to divide the process of organizing the internal control system into a number of stages, i.e. the definition of activities, typology of business processes, risk identification, testing the internal control system’s quality. Conclusions. The introduction of the process approach in organizing an internal control system involves the systematization of information, depending on the nature of the business process, requiring permanent updating. The emergence of non-standard situations makes it necessary to adjust the boundaries of business processes. The resources of accounting business processes are personnel, software, equipment, and other infrastructure elements.

scholarly journals MODELLING THE SECURITY OF BUSINESS PROCESSES WHEN CREATING AND TRANSFERRING VALUES FOR STAKEHOLDERS

2021 ◽  
Vol 4 (39) ◽  
pp. 251-263
Author(s):  
N. Krasnokutska ◽  
H. Koptieva
Keyword(s):  
Internal Control ◽  
Business Processes ◽  
Methodological Approach ◽  
Jel Classification ◽  
Business Development ◽  
Business Process Modelling ◽  
Key Stakeholders ◽  
Wide Range ◽  
Development Processes ◽  
Environmental Interests

Abstract.The purposeof the recent study is to substantiate the directions and develop a methodological approach to modelling the security of business processes by their main types, considering the interests of stakeholders who receive value from interaction with the business.Business as an economic system is based on the significant number of transactions that can lead to different financial, material, informational losses, as well as reputational risks due to the lack of stakeholders’ trust. To prevent these losses when creating and transferring values for stakeholders we suggested the approach to modelling the security of business processes which takes into account their main types (main, auxiliary, managerial business processes and business development processes), the results (value created) that key stakeholders get at the output of these processes, and the indicators that reflect the criteria for modelling the security of business processes — efficiency, effectiveness, and quality (customer satisfaction with the result of the process — the recipient of value). Using the fuzzy set method, a map of identification of the security status of basic, auxiliary, managerial business processes and business development processes was developed, which allows to use a wide range of characteristics of business processes and linguistic variables to describe them (from «catastrophic» state to «very good») and allows you to model options for changing the strategy of the enterprise in order to avoid the risk of imbalance of economic, social and environmental interests of its stakeholders. The proposed approach was applied to retail chains in Ukraine and provided decision-makers with useful information for a better contribution of internal control systems to creating stakeholders’ value. Keywords: business process, modelling, security of business processes, security criteria, stakeholders, interests, values. JEL Classification D46, G32, L81 Formulas: 3; fig.: 2; tabl.: 5; bibl.: 20.

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