scholarly journals Risk-Oriented Approach as the Basis for the Corporate Accounting Policy Formation

2018 ◽  
Vol 5 (4) ◽  
pp. 120-130
Author(s):  
V. M. Rumyantseva
Keyword(s):  
Corporate Governance ◽  
Control Systems ◽  
Internal Control ◽  
Policy Formation ◽  
Control Processes ◽  
Economic Entity ◽  
Group Relationships ◽  
And Control ◽  
Oriented Approach ◽  
Accounting Policy

The evolution of accounting and reporting, the relevance of risk orientation as the basis for the organization of accounting and control processes involves the expansion of ideological fundamentals of the formation of corporate level accounting policy. The risk-oriented approach should be the basis of accounting and control processes of any economic entity. That is why, it is the risk-oriented approach that should be the basis for formation of the accounting policies and internal control systems of the economic entity. In the corporate structure the risks related to corporate governance are particularly important. Therefore, corporate accounting policy, while expanding its borders, must take into account corporate risks related to inter-group relationships. Through the formation of and disclosure of corporate accounting policy the planning and control of joint activities is implemented, which involves analysis and monitoring of strategic risks. Risk-oriented corporate accounting policies, being the regulator of corporate relationships through the implementation of the managerial function can influence the effectiveness of corporate integration. Corporate accounting policy may be the means of achieving the synergy effect in the enterprise integration by defining and regulating the most efficient forms of interaction of the reproduction process members. The evolution of accounting policies closely associated with the evolution of accounting and reporting, leads to the need to identify the relationship of accounting policies and internal control systems at all levels of corporation government, because it is the accounting policy that determines the intra firm accounting principles and is the regulator of corporate relations at all levels of corporate governance. Monitoring of accounting policy, based on the principle of materiality is key to both the separate legal entity that is the part of the group, and to the entire perimeter of consolidation. Key risks relate to the concept of materiality and correspond to the key issues of the auditing that is relevant in the context of the new requirements of the international auditing standards.

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.

METHODOLOGICAL AND INFORMATIONAL SUPPORT OF CONTROL PROCEDURES IN COMPANIES WITH STATE PARTICIPATION

2021 ◽  
Vol 3 (11) ◽  
pp. 166-174
Author(s):  
Anna V. Bodyako ◽  
Keyword(s):  
Optimal Choice ◽  
Informational Support ◽  
Control Processes ◽  
Economic Entity ◽  
State Participation ◽  
Control Procedures ◽  
And Control ◽  
Methods Of Control

The article presents the results of a study of methodological and informational support of con-trol procedures in companies with state participation. Based on the study of issues related to the optimal choice of objects and methods of control procedures, the author substantiates proposals for the formation of the concept of accounting and control processes, substantiates its qualitative elements and structural compo-nents. It is concluded that it is necessary to create in each economic entity a special document “Regulations on intracorporate control”, in which it is advisable to prescribe all the general and specific elements of the organization of intracorporate control in companies with state participation.

(The relationship between the level of actual application of corporate governance principles and the efficiency of internal control systems)

2021 ◽  
Vol 26 ◽  
pp. 667-708
Keyword(s):  
Corporate Governance ◽  
Private Sector ◽  
Control Systems ◽  
Internal Control ◽  
Internal Audit ◽  
Actual Application ◽  
Efficiency And Effectiveness ◽  
Rules And Principles ◽  
The Impact ◽  
The Relationship

Today, corporate governance is one of the concepts that have increased in importance and need in various sectors of the business because of its role and a significant impact in the process of corporate governance and the resulting protection of shareholders' rights and other parties that have interests with the company, so the importance of internal audit in all its administrative and technical aspects as one of the tools Which contribute to the application of the principles and rules of governance, and to be able to accomplish oversight functions and auditing in a manner that achieves the objectives envisaged by the commitment to the rules and principles of disclosure and proper disclosure of decisions and policies and the extent of adherence to the rules and standards of governance and presentation of information This research aims to measure and demonstrate the impact of the relationship between the actual application of the principles of corporate governance and the efficiency and effectiveness of internal audit systems in the private sector companies. The private sector operating in Iraq were selected three banks from this sector in the province of Maysan to be a sample of research and prepared a questionnaire to collect data and analyzed statistically The most important results that resulted from this study is that there is an actual application of the principles of governance in a relatively The Corporate Governance Code increases the efficiency and effectiveness of the internal audit systems in the companies. Key words:- corporate governance , internal control systems

Empirical evidence on internal control systems and corporate governance in Italy

2008 ◽  
Vol 13 (1-2) ◽  
pp. 75-100 ◽  
Author(s):  
Alessandro Cortesi ◽  
Patrizia Tettamanzi ◽  
Fabio Corno
Keyword(s):  
Corporate Governance ◽  
Control Systems ◽  
Empirical Evidence ◽  
Internal Control

An Examination of Management's Regulatory Filing Choices Surrounding Restatements

2014 ◽  
Vol 27 (2) ◽  
pp. 121-144 ◽  
Author(s):  
Marlene A. Plumlee ◽  
Teri Lombardi Yohn
Keyword(s):  
Control Systems ◽  
Internal Control ◽  
Market Reactions ◽  
Negatively Associated ◽  
Economic Forces ◽  
Internal Control Weaknesses ◽  
External Forces ◽  
And Control ◽  
Insight Into ◽  
Regulatory Filing

ABSTRACT A restatement suggests the existence of managerial errors and internal control weaknesses within the company. Disclosures of restatements highlight ineffective management and control systems such that management might act strategically in disclosing restatement and choose less transparent options. There are, however, external forces that likely encourage management to provide more transparent restatement disclosures, despite the fact that managerial ineffectiveness will be publicized. We examine the association between company and restatement characteristics and management's restatement filing choices to provide insight into external economic forces driving the choice. We document that more transparent filing is positively associated with the materiality of the restatement, an SEC investigation, the reporting of material internal control weaknesses, and leverage, and negatively associated with a CEO change. We also find that restatements filed via 8-Ks and via 10-K/As, after the SEC rule clarification in August 2004, are associated with significantly more negative market reactions than other restatements.

Managing manmade system disasters with advanced cybernetics

1998 ◽  
Vol 17 (4) ◽  
pp. 231-244
Author(s):  
Jyh-Horng Tarn ◽  
Michael S. David ◽  
H. Joseph Wen
Keyword(s):  
Decision Support ◽  
Control Systems ◽  
Critical Systems ◽  
Control Structures ◽  
Model Base ◽  
Common Path ◽  
Control Processes ◽  
And Control

Many well-known manmade system disasters exhibit a common path to catastrophe. These functional failures resulted from the gaps that eventually contribute to the development of a tragedy and essentially exist between human and machine capabilities, responses and interfaces and between control processes and control systems. Conducting an analysis of the typical contingency control structures, the authors suggest that management adopt a pessimistic and quasi-intelligent orientation to control and monitor critical systems. This research proposes a threat-driven model base with decision support technologies to enhance conventional control systems and supplement management and operational responses so that the sphere of damage can be minimized.

scholarly journals Corporate governance systems and sustainability: CSR as a factor of convergence between outsider and insider systems

2016 ◽  
Vol 14 (1) ◽  
pp. 139-150 ◽  
Author(s):  
Daniela M. Salvioni ◽  
Simona Franzoni ◽  
Francesca Gennari
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Internal Control ◽  
Capital Mobility ◽  
Social Risk ◽  
Governance Systems ◽  
Sustainable Value ◽  
Corporate Social ◽  
And Control

In an era of increasing capital mobility and globalisation, the growing integration of financial markets seems to be a key factor of corporate governance convergence. One of the most striking differences between corporate governance systems of different countries is the dissimilarity in the firms’ ownership and control that exists across countries. According to the degree of ownership and control, corporate governance systems can be distinguished in outsider systems (characterised by wide dispersed ownership) and insider systems (characterised by concentrated ownership). The transition from a governance approach founded on the shareholder view and oriented to the optimization of economic performance to a policy founded on the stakeholder view and oriented to the appreciation of the interdependence among economic, social and environmental responsibility, seems to be a factor of de facto convergence between outsider and insider systems of corporate governance. The main finding of this chapter is that the effective integration of CSR, sustainability and leadership makes easier the convergence between insider and outsider corporate governance systems. Leadership starts at board level. Corporate social responsibility (CSR) and sustainability require good corporate governance, grounded on stakeholder engagement, fairness, transparency and accountability. All these principles are related with more externally focused boards and determine a governance approach directed to the growth of sustainable value. In light of the above, this chapter will consider how the social responsibility and the role of the leaders (CEOs, Board of Directors, managers, etc.) can determine a governance approach directed to the growth of sustainable value over time. This is possible through the exploitation of opportunities and the economic and social risk management with which the companies should compete. The achievement of sustainability leadership requires significant changes in the operational guidelines and critical factors for company’s success and it imposes the improvement of the internal control systems intended to provide essential support for responsible governance. Therefore, leadership aiming at sustainability (regardless of the corporate governance system) requires CSR to be transferred from top management to the entire organisation, increasing the ability to manage complexity with respect to articulated goals. So, the corporate social responsibility, if properly realized, tends to be a factor of substantial convergence between the different existing systems of corporate governance.

scholarly journals Editorial: Corporate governance and ownership: Changing towards an accountable, sustainable, responsible but profitable corporation

2020 ◽  
Vol 18 (1) ◽  
pp. 4-6 ◽  
Author(s):  
Maria João Guedes
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Governance Mechanism ◽  
Corporate Ownership ◽  
Socially Responsible ◽  
Corporate Scandals ◽  
Corporate Governance Mechanism ◽  
And Control ◽  
Poor Management

In recent years, corporate governance has been a popular topic of research, especially in the aftermath of corporate scandals and financial crisis. These events highlighted the effects that weak corporate governance may have in corporations, resulting in poor management decisions and financial performance, and even ending in the collapse of some corporations. This new issue (volume 18, issue 1) of the journal Corporate Ownership and Control contains an interesting selection of articles, with contributions on the role of different types of ownership (e.g., family and state-owned enterprises) and corporate governance mechanism, from internal control to new forms of socially responsible accountability in order to enable the corporations to ensure a commitment to all stakeholders and a safe global environment for the future.

scholarly journals Effects of Risk Assessment, Control Environment and Control Activities on Performance of Listed Banks in Ghana

2020 ◽  
pp. 18-33
Author(s):  
Redruth Nyaaba Ayimpoya ◽  
David Amoah Akolgo ◽  
Simon Akumbo Eugene Mbilla ◽  
Michael Kwame Gbegble
Keyword(s):  
Risk Assessment ◽  
Financial Performance ◽  
Control Systems ◽  
Internal Control ◽  
Practical Implication ◽  
Internal Controls ◽  
Control Environment ◽  
Private And Public ◽  
Risk Areas ◽  
And Control

Globally, internal controls serve many important purposes for public private and public help organizations. There is however an increasing call for better and improved internal control systems especially in firms that are listed on public market. However, internal control systems, irrespective of how well conceived and implemented cannot provide absolute assurance of management and boards regarding the achievement of objectives. This research focused on the three components of internal control systems namely control environment, risk assessment, and control activities. This study therefore formulated four objectives and investigated how risk assessment, control activities, and control environment affects the performance of Ghanaian banks. In this quantitative study, representatives from twelve listed banks were engaged. Descriptive and regression analysis was performed on the field data. The study result shows while Risk assessment has a strong significant effect on financial performance, Control environment and Control activities, have a weak significant effect on financial performance. The practical implication of the study is that, when assessing the performance of banks, risk areas must be examined critically to reduce or eliminate their impacts on bank performance.

scholarly journals Improvement of Customers Identification Based on Logistic Remote Analysis Methodology

2018 ◽  
Vol 3 (2) ◽  
pp. 229
Author(s):  
Barykin A. E. ◽  
Smyslov P. A.
Keyword(s):  
Control Systems ◽  
Internal Control ◽  
Insurance Companies ◽  
Analysis Methodology ◽  
Methodical Approach ◽  
Financing Risk ◽  
Terrorism Financing ◽  
Remote Identification ◽  
Oriented Approach ◽  
Remote Analysis

The article provides a methodical approach to diagnostic operations with funds to identify quality risks and minimize the subjectivity of the decision of internal control activities. Methodology of remote identification of individuals for example insurance companies. Keywords: cash operations, internal control systems, countering the legalization (laundering) of proceeds received by criminal way and terrorism financing, risk-oriented approach, identifying

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