scholarly journals INTERNAL AUDIT AS A MEANS OF COUNTERACTION FRAUD IN BANKS

2020 ◽  
Author(s):  
Alona Volkova ◽  
◽  
Natalia Danik ◽  
Alona Kolevatova ◽  
◽  
...  
Keyword(s):  
Internal Control ◽  
Effective Means ◽  
Banking System ◽  
Internal Audit ◽  
Well Being ◽  
Financial Fraud ◽  
Scientific Publications ◽  
Economic Relations ◽  
Bank Employees ◽  
Banking Development

The article provides a thorough analysis of theoretical and practical aspects of banking fraud. Banking is one of the important elements of the system of social and economic relations in the country. The study of the existing system of banking operations revealed opportunities for financial fraud and the lack of measures to prevent them. Since the main structural elements of the banking system are banks, it is necessary to be very meticulous about the efficiency of their activities and to exercise both external and internal control over the performance of their inherent functions. This category is manifested in banking supervision carried out by the regulator – the National Bank of Ukraine. But internal control over the illegal actions of bank employees and insiders is no less effective means of detecting violations and preventing internal bank risks. Such control can be carried out by means of internal audit of the bank’s activity, by means of special procedures and methods of detection of elements of financial fraud. Bank fraud is a topic that is often ignored and the perpetrators are not punished at all, and, of course, information about such cases is not made public, because in the first place - it will affect the reputation of the bank. The main attention is paid to the analysis of possible schemes of banking fraud and their impact on the activities of a commercial bank, the material well-being of customers and the national economy in general. The problems of concealing the facts of participation in the internal fraud of bank employees in order to prevent deterioration or damage to the reputation of such a structure are emphasized. It is proposed to involve internal audit mechanisms to detect and prevent such criminal acts, using the provided proposals. However, researchers and researchers are still trying to investigate banking fraud and the possibility of preventing it through internal audit. Thus, after studying the regulations, periodicals and scientific publications on this topic, we can say that internal audit in modern conditions of banking development is thus an effective means of combating banking fraud, as external audit cannot guarantee users of financial statements of the bank or clients of the reliability of the internal control system, which is manifested in the fact that only internal audit, so to speak, within the bank, can detect certain crimes.

HISTORICAL STAGES OF FORMATION AND DEVELOPMENT OF INTERNAL CONTROL

2021 ◽  
Vol 296 (4) ◽  
pp. 14-20
Author(s):  
AnnА KOZACHENKO ◽  
Keyword(s):  
Internal Control ◽  
Private Property ◽  
Internal Audit ◽  
Economic Life ◽  
Capitalist System ◽  
Historical Aspect ◽  
Economic Relations ◽  
History Of ◽  
Economic Formation ◽  
Means Of Production

The article highlights the views of scientists on the allocation of periods (stages) in the history of internal control, which differ in the following features: the emergence and development of socio – economic relations that existed at different times; diversification of objects and subjects of control; complicating the tasks of control over the different levels of development of productive forces and equipment of each society; specific methodological techniques. Thus, the first manifestations of control are observed during the period of primitive communal system. The period of slavery is considered the stage of the emergence of internal control. Characteristic of this period was physical coercion to work. In the period of the feudal system, the peculiarities of the development of socio-economic formation of European states are the distinction between external and internal audit, and accounting registers to reflect the facts of economic life, which served for entries in the accounts of the General Ledger. In addition, control activities were manifested in the movement of credit and settlement transactions between buyers, in settlements between buyers and banks, in production processes and private ownership of the means of production. The capitalist system of production did not require many special control bodies, and its functions were carried out directly by the owners of the means of production. The basis of capitalism was the private property of the bourgeoisie on the means of production, but not on the worker, who at that time received more freedom. It was during the communist formation that thorough work was carried out on the methodological support of internal economic control, but its active development began after the declaration of independence of Ukraine, by borrowing the foundations in foreign countries. Thus, the periodization presented in the article helps to trace the historical aspect of the development and formation of internal control as a control system as a whole, in a certain period of time in which.

scholarly journals LEGAL FORMS OF CONTROL AND SUPERVISION OF STORAGE AND OF EFFECTIVE USE OF STATE PROPERTY BY PARTICIPANTS OF ECONOMIC RELATIONS

2021 ◽  
pp. 3-9
Author(s):  
V.S. Shcherbyna ◽  
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Internal Audit ◽  
The State ◽  
State Enterprise ◽  
Budget Process ◽  
Economic Relations ◽  
Business Entities ◽  
Legal Forms ◽  
Effective Use

The main legal forms of control and supervision over the preservation and effective use of state property by participants in economic relations, which are considered as one of the elements of the legal regime of state property, are studied. According to the results of the study, the following main legal forms of control and supervision over the preservation and effective use of state property by participants in economic relations are identified: a) control by authorized bodies over compliance with the contract concluded with the head of the state enterprise; head of the preservation and effective use of state property; b) control by the State Property Fund of Ukraine over the use of leased integral property complexes of state enterprises and leased state property; c) accounting and financial reporting of business entities, as well as control and supervision over their condition and reliability; d) audit of financial statements; e) state financial audit; f) internal control and internal audit in the budget process. It is noted that the current legislation does not make a clear distinction between the functions of control and supervision, especially in cases where it concerns the powers of authorized public authorities, which in accordance with Part 2 of Art. 19 of the Constitution of Ukraine are obliged to act only on the basis, within the powers and in the manner prescribed by the Constitution and laws of Ukraine.

scholarly journals The Impact of Macroeconomic, Social and Governance Factors on the Sustainability and Well-Being of the Economic Environment and the Robustness of the Banking System

2021 ◽  
Vol 13 (10) ◽  
pp. 5713
Author(s):  
Vasile Dedu ◽  
Dan-Costin Nițescu ◽  
Maria-Alexandra Cristea
Keyword(s):  
European Union ◽  
Private Sector ◽  
Banking System ◽  
Well Being ◽  
Annual Data ◽  
The European Union ◽  
Macroeconomic Indicators ◽  
Domestic Credit ◽  
The Impact ◽  
Banking Development

The paper highlights the connection between the European Union banking system and a set of representative factors—macroeconomic, social, and governance factors—selected from the perspective of sustainability and well-being. The analysis is carried out as a panel regression on EU member countries with annual data for 2005–2018, and it explores the impact of the selected factors on the robustness of the banking systems in the European Union countries. The analyzed variables to reflect the robustness of the banking system were the domestic credit to the private sector and the nonperforming loans (NPL) rate. Those indicators are of high relevance and concern within the current pandemic context. The results show that the banking development degree influences the increase of private-sector lending and the decrease of the NPL rate. Social and governance factors impact differently the level of private sector and NPL rate. All macroeconomic indicators used to influence the level of private-sector lending. The research reflects the fact that to promote and adopt a culture of sustainability and to ensure well-being, a close collaboration between all sectors of an economy is needed, together with a strong policy interconnection and harmonization between micro and macro.

Corporate Management in the Eighteenth Century in the Company of Commerce of Pernambuco and Paraiba

2019 ◽  
Vol 10 (2) ◽  
pp. 102-116
Author(s):  
Álvaro Pereira de Andrade ◽  
◽  
Ana Maria S. B. Sotomayor ◽  
Jorge José Martins Rodrigues ◽  
◽  
...  
Keyword(s):  
Internal Control ◽  
Internal Audit ◽  
Well Being ◽  
Governance Structure ◽  
Internal Controls ◽  
Corporate Management ◽  
Internal Control System ◽  
The Government ◽  
Accounting Reports ◽  
Regular Flow

This study is based on the management model carried out by Companhia Geral de Comércio de Pernambuco e Paraíba — CGCPP (General Company of Commerce of Pernambuco and Paraiba), founded in 1759 by the government of the Marquis of Pombal, for the exclusive trade rights in Brazil between the kingdom of Portugal and the captaincies of Pernambuco and Paraíba. The results of this research revealed that CGCPP’s management adopted policies and practices of governance structure similars to the current ones, focused on ethics and transparency, aiming at the security of shareholders and the well-being of Captaincies. This survey also brought to light that the monitoring of CGCPP’s internal control system was carried out through accounting reports issued by its “Contadoria” (Accounting department), and were subject to systematic review by its Inspection of Accounts unit, whose the assignments in the Company were similar to those of an internal audit. The main objectives of this accounting review were to ensure the safety of internal controls of the CGCPP and to detect possible irregularities for immediate correction and adjustments, thus allowing the regular flow of operations of the Company.

scholarly journals STANDARDIZATION OF INTERNAL SHARIA AUDIT

2019 ◽  
Vol 8 (7) ◽  
Author(s):  
Irina V. Novikova ◽  
Firdaus I. Kharisova
Keyword(s):  
Quality Control ◽  
Financial Markets ◽  
Financial Institutions ◽  
Internal Control ◽  
Effective Means ◽  
Internal Audit ◽  
Financial Products ◽  
Gulf Countries ◽  
Islamic Financial Institutions ◽  
Audit Activity

The significant growth rates of the Islamic economy and the great interest in Islamic financial products and services from among other non-Islamic partners have determined the need to tighten control over the observance of Sharia norms and rules by Islamic Financial Institutions. Internal audit has long established itself as one of the most effective means of internal control and improving the efficiency of organizations. That is why AAOIFI has developed a new standard, “Internal Sharia Audit,” which should form the basis for the operation of the largest IFIs in Malaysia and the Gulf countries. For Russia, this standard is of particular interest in the changing context of financial markets and the redistribution of investment flows. The paper provides a brief overview of the most significant provisions of the presented standard. Details were considered regarding significant changes from the earlier standard released by AAOIFI. Based on the fundamental principles of audit activity, special attention is paid to the organizational independence and objectivity of internal Sharia auditors, as well as to quality control of the audit procedures. As in the standard itself, the paper analyses the requirements for the skill level of internal Sharia auditors

scholarly journals Historical aspects and epizootic situation of the porcine epidemic diarrhea

2019 ◽  
Vol 21 (95) ◽  
pp. 75-79
Author(s):  
D. M. Masiuk ◽  
V. V. Glebenyuk ◽  
A. V. Kokarev ◽  
T. O. Vasylenko
Keyword(s):  
Environmental Control ◽  
Effective Means ◽  
Well Being ◽  
Developed Countries ◽  
Rapid Expansion ◽  
Emergent Properties ◽  
Scientific Publications ◽  
Historical Aspects ◽  
Epizootic Process ◽  
Agroindustrial Complex

The development of an epizootic situation for emergent infections is characterized by the emergence of the pathogen beyond the borders of countries and even continents. In some developed countries, the epizootic situation of PED is complex and tense. The emergence of the disease is facilitated by various factors: insufficient level of biosecurity and biosafety of farms, lack of information on the spread of infection, mechanisms of transmission of the pathogen, lack of effective means of specific prevention, etc. Changing the form of the epizootic process and the emergence of PED outbreaks in new territories have caused economic consequences for pork producers in the USA, China, South Korea, Thailand, Vietnam and others. The purpose of our work was to identify the historical aspects and epizootic situation about the PED. Scientific publications were used to analyze epizootic data. In studying the epizootic situation of PED in Ukraine, the results of laboratory studies of the Research Center for Biosafety and Environmental Control of the Agroindustrial Complex of the Dnipro State Agrarian and Economic University during 2015–2018 were used. The first is from the time of the description of the disease until 2010. During this period, there was a gradual spread of PED to European and Asian countries. Epizootic outbreaks of the disease were rare and isolated, and in certain territories were enzootic. The second – from 2010 and to the present. As a result of the genome mutation, the PED virus has acquired high virulence and emergent properties. There was a transcontinental introduction of the pathogen and rapid expansion of the nosoareal of the disease. The epizootic process of PED is characterized by epizootic and panzootic forms of manifestation. Despite preventive and well-being anti-epizootic measures, the epizootic situation regarding PED in Ukraine is consistently unfavorable: Zaporizhzhia, Cherkasy, Dnipropetrovsk and Kharkiv regions were identified as the most unfavorable in relation to the PED.

PREREQUISITES FOR THE FORMATION OF A MECHANISM FOR STATE REGULATION OF SOCIAL GUARANTEES IN THE REGION

2017 ◽  
Author(s):  
Vitaly Lobas ◽  
◽  
Elena Petryaeva ◽  
Keyword(s):  
Social Protection ◽  
Well Being ◽  
State Regulation ◽  
The State ◽  
Point Of View ◽  
Periodic Review ◽  
Cost Of Living ◽  
Economic Relations ◽  
State Management ◽  
The Cost

The article deals with modern mechanisms for managing social protection of the population by the state and the private sector. From the point of view of forms of state regulation of the sphere of social protection, system indicators usually include the state and dynamics of growth in the standard of living of the population, material goods, services and social guarantees for the poorly provided segments of the population. The main indicator among the above is the state of the consumer market, as one of the main factors in the development of the state. Priority areas of public administration with the use of various forms of social security have been identified. It should be emphasized that, despite the legislative conflicts that exist today in Ukraine, mandatory indexation of the cost of living is established, which is associated with inflation. Various scientists note that although the definition of the cost of living index has a well-established methodology, there are quite a lot of regional features in the structure of consumption. All this is due to restrictions that are included in the consumer basket of goods and different levels of socio-economic development of regions. The analysis of the establishment and periodic review of the minimum consumer budgets of the subsistence minimum and wages of the working population and the need to form state insurance funds for unforeseen circumstances is carried out. Considering in this context the levers of state management of social guarantees of the population, we drew attention to the crisis periods that are associated with the market transformation of the regional economy. In these conditions, there is a need to develop and implement new mechanisms and clusters in the system of socio-economic relations. The components of the mechanisms ofstate regulation ofsocial guarantees of the population are proposed. The deepening of market relations in the process of reforming the system of social protection of the population should be aimed at social well-being.

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.

CURRENT STATE OF REGULATION OF INTERNAL FINANCIAL CONTROL AND INTERNAL FINANCIAL AUDIT IN THE BUDGET SECTOR

2020 ◽  
Vol 1 (9) ◽  
pp. 119-124
Author(s):  
D. R. GINIYATULLINA ◽  
◽  
◽  
Keyword(s):  
Internal Control ◽  
Internal Audit ◽  
Regulatory Framework ◽  
International Standards ◽  
Financial Control ◽  
Budget Process ◽  
Federal Law ◽  
Government Sector ◽  
General Government ◽  
Financial Audit

Since 2013, there has been an active transformation of the regulatory framework related to the implementation of international standards of internal audit in Russian practice, which regulates the organization and implementation of internal financial control and internal financial audit in the general government sector. However, the regulatory framework is constantly undergoing changes that are associated with the need to take into account the specifics of the functioning of these organizations. Particular attention is paid to the development of the methodological foundations of internal financial control and audit on the basis of amendments made by the Federal Law of July 26.07.2019, 199-FZ to the Budget Code of the Russian Federation. In particular, internal financial control was removed from the budgetary powers of participants in the budget process. When these changes were implemented, a lot of questions arose, such as the exclusion of internal financial control as a separate budgetary authority means that this type of control can be omitted, journals and internal control cards are not kept.

RESEARCH OF FEATURES OF FOREIGN ECONOMIC TRADE OF REGIONAL ECONOMY SERVICES

2019 ◽  
pp. 44-51
Author(s):  
Andrii ZAVHORODNII
Keyword(s):  
Foreign Trade ◽  
Economic Activity ◽  
Trade Balance ◽  
Well Being ◽  
General Situation ◽  
The Black Sea ◽  
Reduction Peak ◽  
Black Sea Region ◽  
Economic Relations ◽  
Export Dynamics

Abstract Introduction. Nowadays the foreign economic activity of the regions serves as a factor contributing to improving the population well-being, improving its life quality, as well as territory socio-economic development and increasing its competitiveness. The purpose of the article is to analyze the foreign trade in services at the regional level and to identify its features. Results. The comparative analysis of the services export dynamics was conducted in the studied regions for the period from 1996 to 2018: the periods of growth, reduction, peak values were identified, the leader – Odessa region was determined. At the same time, it is emphasized that due to the decrease in the indicator in Odessa region and the growth in the Mykolaiv region, the gap between them narrowed significantly for the period from 2012. The dynamics of the services import volume in the economy of the studied regions has been analyzed. Determination of the leader – Odessa region was done, the trends of dynamics for the studied period are considered. The dynamics calculation of the foreign trade balance in services in the Mykolayiv region is given. The calculation of the chain gains index of the services foreign trade balance in the Mykolaiv region is given, which indicates a considerable amplitude of fluctuations and reduction from 2014 to 2016. Results. The foreign trade balance in services in the studied areas was calculated and analyzed: the Odessa region was the leader before 2010. After in accordance with the services export dynamics in Odessa and Mykolaiv regions, their convergence to the actual equalization in 2018 is observed. The positive value of the balance in all the regions for the whole study period is noteworthy. The analysis makes it possible to confirm the significant dependence of the foreign regions economic activity of the Black Sea region on the general situation in the country with divergent tendencies of indicators changes, which allows to define it as heterogeneous. Keywords: foreign economic activity of the region, export, import, dynamics, regional foreign economic relations, foreign economic relations of the region.

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