scholarly journals Current Planning for Internal Audit of Risk Assessment of the Company Activities

2020 ◽  
pp. 48-57
Author(s):  
М. SHYGUN
Keyword(s):  
Effective Interaction ◽  
Internal Audit ◽  
Economic Security ◽  
Management Control ◽  
Operating Conditions ◽  
Financial Indicators ◽  
Internal Auditors ◽  
Working Plan ◽  
The Impact

Lack of management control of the activity risks creates critical operating conditions for the enterprise, in which the financial indicators may change unexpectedly and unfavorably. Avoidance of the risks of an entity's activity is possible if effective interaction is made primarily between economic security and internal audit departments. Productive work of internal auditors to identify, evaluate and reduce the impact of risks on the performance of the enterprise is possible with its proper organization. The article describes the key principles for planning the activities of internal auditors to ensure the quality of audit procedures. Approaches to the organization and planning of the Internal Audit Department's work on identifying risks of the entity's activities, minimizing them and preventing them in the future are disclosed. A working plan for the application of audit procedures in the department of accounting, cashier and warehouse is presented, which demonstrates procedures for identifying and assessing such types of risks as market, payment, currency, financial, tax, credit, loss of assets. The working plan of the audit procedures developed contains the most effective procedures, depending on the objects of the audit, determines the scope of the audit, the procedure of its carrying out, responsible executors, the terms of the procedures. The use of the following suggestions for the planning of internal audit allows to apply qualitatively different forms and methods of audit, types of audit procedures, specialize the audit activities, correctly establish the order of audits, take into account the results of audit in the preparation and approval of various types of enterprise reports.

scholarly journals THE INFLUENCE OF ACCOUNTING RISKS ON THE QUALITY OF INFORMATION

2020 ◽  
pp. 179-190
Author(s):  
L.V. Gutsalenko ◽  
U.O. Marchuk
Keyword(s):  
Internal Control ◽  
Management System ◽  
Control Function ◽  
Accounting Information ◽  
Internal Audit ◽  
Management Control ◽  
Specific Information ◽  
Subjective Uncertainty ◽  
The Impact

The evolution of risk theory and its interpretation by economists of the neoclassical school are considered. The reasons that give rise to business risks are identified. It is emphasized that risk is objective, but correlated with subjective uncertainty or objective correlation of subjective uncertainty. The focus is on the impact of risk on the formation of performance of economic entities. It is proved that risk minimization is impossible without the availability of timely and reliable information about changes in the market environment, which is provided by accounting for the facts of economic situations. Accounting risks have been identified as an integral part of business risks. It is proved that in order to achieve efficient management, control is one of the important functions in the management system, because it combines accounting, analysis, forecasting, regulation of enterprises. It was found that control can be considered as a management function, and internal control (audit), which ensures the effectiveness of the control function of accounting - as a subsystem of accounting. It is determined that in order to minimize risks and ensure the usefulness of accounting information to users, it should have the following main characteristics: be objectively prepared (registration and reporting of accounting transactions should be presented from a neutral point of view, without any prejudices that could create the reader has a misconception about the financial condition, results or cash flows of the business); have a sequence of recording (fixation of information with consistent application of accounting standards, and presentation of consolidated results equally for all presented periods); the accountant prepares financial statements that contain specific information necessary for management to make a decision; be reliable and complete. It is noted that strengthening the effectiveness of the control function of accounting is possible under the condition of functioning in the management system of the internal audit service. The basic imperatives for reducing accounting risks are modeled. The strategic components that improve the quality of accounting information are identified.

scholarly journals The Effect of Applying the Organization Enterprise Resource Planning System (ERP) in the Quality of Internal Audit: A Case of Jordanian Commercial Banks

2018 ◽  
Vol 10 (5) ◽  
pp. 96
Author(s):  
Ziad Abdul Halim AL Theebeh ◽  
Tareq Hammad AL-Mubaydeen ◽  
Mahmoud Fawzi Ismael
Keyword(s):  
Enterprise Resource Planning ◽  
Commercial Banks ◽  
Internal Audit ◽  
Resource Planning ◽  
Planning System ◽  
Accounting System ◽  
Internal Auditors ◽  
Erp System ◽  
The Impact

This study aimed at examining the impact of the ERP system on the quality of internal auditing in the Jordanian commercial banks. For this purpose, the researchers designed a questionnaire that was distributed to specialists in the same field of this research. The questionnaire consisted of eight perspectives. The study’s sample included 21 Jordanian banks, while the study’s sample consisted of thirteen Jordanian commercial banks. The results discovered a statistical and significant impact on the application of the organization's resource planning system, especially in the field of finance, marketing, sales, management, human resources as well as the services’ system. Based on these results, the researchers raised up a set of recommendations, which are including the necessity of developing the capabilities of the internal auditors in the use of the organization's ERP system in general, and enhancing the accounting system to increase the confidence and the quality of the financial reports particularly. Additionally, it is necessary to explain for the internal auditors the risks, which are embedded in the system of information technology.

The Impact of the Professional Competence of the Internal Auditor in Improving the Quality of Accounting: Analytical Study

2021 ◽  
Vol 2 (5) ◽  
pp. 85-99
Author(s):  
Jasim Rahi Kadim ◽  
Yousif Mousa Sabti ◽  
Ghazanfar Ali ◽  
Wameedh A. Khdair ◽  
Karim Hazen Shaltag
Keyword(s):  
Professional Competence ◽  
Stock Exchange ◽  
Internal Audit ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Quality Of Accounting Information ◽  
Private Banks ◽  
Questionnaire Form ◽  
The Impact

The aim of the research is to test the impact of the professional competence of the internal auditor in improving the quality of accounting information (QAI). The research community consists of a group of Iraqi private banks listed in the Iraqi Stock Exchange, and the research sample includes accountants, internal auditors and internal audit managers, and for the purpose of data collection, the researcher prepared a questionnaire form, as (52) forms were distributed to the individuals of the research sample and (49) forms were recovered from them, and the form valid for analysis reached (44) forms. The data of which were analyzed using the statistical package (SPSS). The research reached conclusions, including the existence of a correlation and moral effect between the variables of the research, and among the recommendations made by the research directing banks’ attention to the need to continue holding conferences and seminars in coordination with the competent bodies and academics to develop the capabilities and capabilities of internal auditors in companies.

Family tourism: Interpersonal interaction, existential authenticity and quality of tourist experience

2021 ◽  
pp. 135676672110224
Author(s):  
Han Chen ◽  
Yan Jiao ◽  
Xiaoyi Li ◽  
Kun Zhang
Keyword(s):  
Nuclear Family ◽  
Emotional Experience ◽  
Effective Interaction ◽  
Tourism Industry ◽  
Interpersonal Interaction ◽  
The Family ◽  
Tourist Experience ◽  
Role Of Parents ◽  
The Impact

The functional value experience of family tourism has often been paid attention both by tourists themselves and the tourism industry, but the individual value experience of parents in family tourism has been neglected. Family tourism shifts the scenario of interpersonal interaction between families from home, the conventional environment, to a non-conventional one. This change in the interactive situation will inevitably bring about changes in interpersonal interaction behavior and individual perception, especially to tourists who take on the role of parents in a nuclear family. This study enriches the examination of the family tourism experience by exploring the interpersonal interaction, existential authenticity travel experiences, and quality of tourist experience perceived by parents in family tourism. The main findings are: 1) In the non-conventional environment of tourism, effective interaction between tourists and their families helps to improve tourists’ emotional experience and satisfaction; 2) Three aspects of existential authenticity are the internal causes of the impact of interpersonal interaction on emotional experience and satisfaction; 3) Differences in parental roles make important discrepancies between men and women’s perception of family tourism experiences. This study provides insights to understanding the family tourism market and brings valuable findings to the area of family tourism marketing and management.

scholarly journals DETERMINAN EFEKTIVITAS AUDITOR INTERNAL PEMERINTAH (Studi Pada Kantor Inspektorat Provinsi Maluku Utara)

2018 ◽  
Vol 14 (1) ◽  
pp. 55
Author(s):  
Irfan Zamzam ◽  
Suriana AR Mahdi
Keyword(s):  
Career Path ◽  
Internal Audit ◽  
Top Management ◽  
Management Support ◽  
Professional Expertise ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Top Management Support ◽  
Quality Of Work

This study examines the determinants of the effectiveness of internal auditors at the Office of the Inspectorate of North Maluku. Specifically, this study tests; influence of professional expertise, quality of work, independence, perceived career path and top management influence of internal auditor on the effectiveness of internal audit. Analysis was conducted by using multiple regression analysis from 43 respondents. The results showed that; Professional expertise, quality of work, independence and career path affect the effectiveness of internal audit while top management support does not influence the effectiveness of internal audit.

Adherence to the Internal Audit Core Principles and Threats to Internal Audit Function Effectiveness

2021 ◽  
Author(s):  
Christopher G Calvin
Keyword(s):  
Corporate Governance ◽  
Future Development ◽  
Internal Audit ◽  
Internal Auditors ◽  
The Core ◽  
Body Of Knowledge ◽  
Internal Audit Function ◽  
Lower Likelihood ◽  
Practitioner Survey ◽  
The Impact

I investigate the impact that adherence to the Institute of Internal Auditors' Core Principles has on the likelihood that an internal auditor's effectiveness is threatened through pressure to modify valid audit findings. I use responses from the Institute of Internal Auditors' 2015 Common Body of Knowledge Practitioner Survey to show that higher adherence to the Core Principles by both internal audit staff and CAEs is associated with a lower likelihood of being pressured to modify audit findings. I also explore which of the ten Core Principles are dominant in explaining these associations to inform the future development of the internal audit profession. Finally, I investigate the sources of pressure to modify audit findings and explore the effect the Core Principles have in mitigating pressure from each source. My findings are relevant to the Institute of Internal Auditors, internal audit practitioners, and academics interested in internal audit or corporate governance.

Organizational identity, professional identity salience and internal auditors’ assessments of the severity of internal control concerns

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ian Burt ◽  
Theresa Libby
Keyword(s):  
Professional Identity ◽  
Internal Control ◽  
Organizational Identity ◽  
Internal Audit ◽  
Identity Salience ◽  
Content Type ◽  
Internal Auditors ◽  
Internal Control Weaknesses ◽  
The Impact ◽  
Benefits And Costs

Purpose This paper aims to examine whether increasing the salience of the internal auditor’s professional identity, defined by the expectations of their professional group, increases internal auditors’ judgments of the severity of internal control concerns when their organizational identity is high. Design/methodology/approach This paper tests the hypothesis using a laboratory experiment with internal auditors as participants. Findings The results support the hypothesis that professional identity salience moderates the relation between organizational identity and the assessed severity of identified internal control weaknesses. Increasing the salience of professional identity results in a more severe assessment of identified internal control weaknesses when organizational identity is high than when it is low. Originality/value Prior research in the lab and in the field provides mixed results about the impact of organizational identity on internal auditors’ judgments of the severity of identified internal control concerns. This paper contributes to the discussion on this issue. In addition, the results have implications for the debate about the benefits and costs of in-house versus out-sourced internal audit functions.

scholarly journals Risks of Adopting Automated AIS Applications on the Quality of Internal Auditing

2021 ◽  
Vol 18 ◽  
pp. 763-779
Author(s):  
Adel M. Qatawneh
Keyword(s):  
Data Security ◽  
Large Population ◽  
Data Entry ◽  
Internal Auditing ◽  
It Infrastructure ◽  
Internal Auditors ◽  
Operations Control ◽  
Internal Operations ◽  
The Impact

The current study aimed at examining the impact of AIS risks (IT Infrastructure ,Data Entry and Outcome, Internal Operations, Control procedures and tools and Data Security) on quality on internal auditing as a comparison study between Jordan and England. Study adopted quantitative approach and d istributed a questionnaire on (133) internal auditors in Jordan and (331) internal auditors in England. Through SPSS results of study indicated that all adopted risks were found within both samples responded to questionnaire. Both sample also indicated that "internal operations" and "data security" are the most influential risks that may jeopardize quality of internal auditing. Results also indicated differences between impacts of such risks on quality of internal auditing; such risks were attributed to the large population of England compared to Jordan and the intensity of internal auditing in England as higher than Jordan due to the intensity of operations within the country. However, "IT infrastructure" and "data security" appeared to be higher in England compared to Jordan which helped in easing the negative impacts of AIS risks on quality of internal auditing. Study recommended applying restrictions on users to limit the possibility of changing and manipulating data whether by parties inside or outside the organization, in addition to presenting extra efforts in choosing internal auditors in terms of qualifications, experiences and abilities.

scholarly journals Impact of Applying Governance Standards in Evaluating the Quality of Internal Audit in Yemeni Private Universities

2021 ◽  
Vol 13 (46) ◽  
pp. 81-103
Author(s):  
Ahmed Ali Qassem Mohssen
Keyword(s):  
Audit Quality ◽  
Private Universities ◽  
Relative Weight ◽  
Internal Audit ◽  
Slight Variation ◽  
Internal Auditing ◽  
Audit Process ◽  
Transparency And Disclosure ◽  
The Impact

The study aimed to measure the impact of applying governance standards in evaluating the quality of internal audit in Yemeni private universities. To achieve this, the researcher followed the descriptive and analytical approach and employed a questionnaire to collect data from a sample that included (68) participants. After conducting relative analysis, governance was at an average level of (64.9%). There was also a slight variation in the level of implementation, as the dimension of transparency and disclosure was the most frequent dimension, followed by accountability and independence. Further, there was a medium level of adherence to internal auditing standards at a relative weight (65%). The level of commitment to the audit dimensions was as follows: managing the internal audit activities (67%), communicating the results (66%), assessing the risk and control management (64%), and planning and implementing the audit process (62%). and The study also found that the combined governance standards (transparency and disclosure, accountability, independence) increase the quality of the internal audit in Yemeni private universities and the highest dimensions of governance standards affecting the quality of internal auditing are the dimension of independence (80.3%), accountability (71.7%), and disclosure and transparency (63.7%). In light of this, the study recommended adopting governance standards as an integrated approach to achieve quality performance in private Yemeni universities; spreading the culture of governance in private universities among their leaders and staff by holding training courses, seminars, and conferences in order to be accepted and absorbed. In addition, governance should be included in some related academic courses in the disciplines of administrative and accounting sciences. Keywords: governance standards, internal audit quality assessment, private Yemeni universities.

scholarly journals A versenyképesség és a társaságok belső ellenőrzése (Competitiveness and corporate internal audit)

2012 ◽  
pp. 19-33
Author(s):  
Mária Bordáné Rabóczki
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Supervisory Board ◽  
Internal Audit ◽  
Senior Management ◽  
Internal Auditors ◽  
Mutual Dependency ◽  
Internal Audit Function ◽  
External Auditor ◽  
The Impact

A cikk a belső ellenőrzésnek a hatékony társaságirányításhoz való hozzájárulását és ennek a versenyképességre gyakorolt hatását vizsgálja. A belső ellenőrzés és a társaságirányítás kölcsönös összefüggésben áll egymással. Nemcsak a belső ellenőrzés hat a társaságirányításra, hanem a releváns társaságirányítási struktúrák, emberi kapcsolatok és magatartásformák jelentős hatást gyakorolnak a belső ellenőrzés színvonalára és hatékonyságára. A cikk ezért különös figyelmet szentel a belső ellenőröknek az igazgatósággal, az auditbizottsággal/felügyelőbizottsággal, a menedzsmenttel és a könyvvizsgálóval való kapcsolatainak vizsgálatára. Rávilágít a belső ellenőrzés legfőbb funkciójára, amely objektív bizonyosságot nyújt az igazgatóság és a felső vezetők számára a kockázatok azonosítására, kezelésére és elfogadható szintre történő csökkentésére szolgáló kontrollfolyamatok megfelelőségéről és hatékonyságáról. A bemutatott belső ellenőrzési modell azt a szemléletet közvetíti, hogy a belső ellenőrzés által nyújtott objektív bizonyosság megszerzése nemcsak a jogszabályoknak vagy az ajánlásoknak való megfelelés, hanem a társaságok versenyképessége szempontjából is kiemelkedő jelentőségű. _________ The purpose of this paper is to consider the contribution of internal audit to the sound corporate governance and the impact of that on the competitiveness of the companies. There is a mutual dependency between internal audit and corporate governance. Not only the internal audit has impact on the corporate governance but the relevant governance structures, relationships and behaviour influence the level and effectiveness of the internal audit. Therefore the present paper is highly concerned with the internal auditors` relationships with the board, audit committee/supervisory board, senior management and the external auditor. It highlights the internal audit function, that provides objective assurance to the board and senior management about the adequacy and effectiveness of the processes by which risks are identified, managed, controlled and mitigated to acceptable levels. The internal audit model demonstrated represents an approach, according to that getting objective assurance provided by internal audit is important not only to be in line with laws and recommendations but to facilitate the corporate competitiveness.

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