Compliance control of conflict of interests in the general system of internal control and resource management

The results of the research published in the article will be useful to professionals directly or indirectly involved in the process of identification and resolution of conflicts of interest, to managers at all levels and to internal control and compliance professionals. The article summarizes the arguments and counterarguments within the scientific discussion on the specificity and peculiarities of the concept of conflict of interest, its nature and not identical with the concept of corruption. The article deals with the conceptual apparatus of the conflict of interest problem and defines the main approaches to the resolution of conflicts of interest and summarizes the research results in this area. Based on the analysis of legal acts and other sources, it is determined that the existence of a conflict of interest is not a necessary prerequisite for the occurrence of a corruption offense. The results of the monitoring of compliance with the legislation on conflict of interests and other restrictions on the prevention of corruption are clearly illustrated, information on the functioning of the system of prevention and detection of corruption in the Ministry of Defense of Ukraine and the Armed Forces of Ukraine is presented. The direct participants of anti-corruption activities in the system of the Ministry of Defense of Ukraine and the Armed Forces of Ukraine were identified, considerable attention was paid to the issue of conflicts of interest in the structural units of the defense department, namely to authorized persons for the prevention of corruption. Also, a certain algorithm of implementation of the process of identification of risks related to the presence of conflicts of interest in the system of internal control and compliance is formulated. An example is given of preventing and avoiding conflicts of interest through the use of specific tools. The study empirically confirms and theoretically proves that the identification of existing conflicts of interest in a separate structural unit must be taken into account when identifying and assessing risks in the functioning of the internal control system. Methodical tools of the study were methods of analysis, synthesis, comparison, induction, deduction. The study period is from 2014 to the present.

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TRANSAKSI BENTURAN KEPENTINGAN BAGI DIREKSI PERSEROAN TERBATAS TERHADAP KEGIATAN PASAR MODAL DI INDONESIA

NOTARIUS ◽

10.14710/nts.v13i2.31074 ◽

2020 ◽

Vol 13 (2) ◽

pp. 557-568

Author(s):

Kiki Latifa Zen ◽

Ngadino Ngadino ◽

Anggita Doramia Lumbanraja

Keyword(s):

Internal Control ◽

Capital Market ◽

Conflict Of Interest ◽

Audit Committee ◽

Conflicts Of Interest ◽

Limited Liability ◽

Internal Control System ◽

Limited Company ◽

The Board Of Directors ◽

Stock Investments

Companies that have already gone public usually want a more substantial source of funds, one of which is by holding capital market activities (share investment), not a few for the Directors of the Company to make a conflict of interest transaction for their interests which results in a loss in a limited company. This paper aims to find out what is the basis for shareholders, Directors and The Board of Commissioners in conducting transactions of conflict of interest. Philosophical normative research approaches are used to analyze conflicts of interest referring to related regulations and principles of agreement in the capital market. As a result of the discussion, with the ambiguous regulations, if there is a conflict of interest by the Directors and other management, each Director must be fully responsible personally (if only one director) for the loss of a Limited Liability Company if the person concerned is proven guilty or negligent in carrying out their duties in accordance with applicable regulations, but in order to avoid conflicts of interest by the board of directors, the Company must establish a Limited Company Assistant and also form an Audit Committee to increase the effectiveness of the internal and external audit functions and the effectiveness of the internal control system to be protected from actions fraudulent company management, which can be detrimental to stock investments. Keywords: transaction; agreement; investation; capital marketAbstrak Perusahaan yang sudah mengalami go public biasanya meinginkan sumber dana yang lebih besar salah satunya yaitu dengan cara mengadakan kegiatan pasar modal (Investasi saham), tidak sedikit bagi Direksi Perseroan melakukan transaksi benturan kepentingan untuk kepentingan pribadinya yang berujung pada terjadinya kerugian dalam Perseroan terbatas. Tulisan ini bertujuan untuk mengetahui apa yang menjadi dasar bagi para pemegang saham, Direksi, maupun Dewan Komisaris dalam melakukan transaksi benturan kepentingan tersebut. Pendekatan penelitian normatif filosofis digunakan untuk menganalisis benturan kepentingan mengacu pada peraturan yang terkait dan asas-asas perjanjian dalam pasar modal. Sebagai hasil pembahasannya yaitu dengan Peraturan yang masih rancu maka apabila terjadi benturan kepentingan yang dilakukan oleh Direksi maupun pengurus lainnya adalah dengan tiap-tiap Direksi harus bertanggungjawab penuh secara pribadi (apabila direksi hanya satu) atas kerugian Perseroan Terbatas apabila yang bersangkutan terbukti bersalah atau lalai dalam menjalankan tugasnya sesuai dengan ketentuan yang berlaku, namun agar menghindari terjadinya benturan kepentingan yang dilakukan oleh pihak direksi maka Perseroan harus membentuk Asisten Perseroan Terbatas dan juga membentuk Komite Audit untuk meningkatkan efektivitas fungsi audit internal dan eksternal serta efektivitas sistem pengendalian internal agar terlindungi dari tindakan-tindakan curang yang dilakukan pihak manajemen perusahaan, yang mana dapat merugikan investasi saham. Kata kunci : transaksi; perjanjian; investasi; pasar modal

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Selection of indicators of the scientific and methodological apparatus for assessing the effectiveness of the internal control system of the ministry of defense of Ukraine

Journal of Scientific Papers Social development & Security ◽

10.33445/sds.2019.9.3.6 ◽

2019 ◽

Vol 9 (3) ◽

Author(s):

Anatolii Loishyn

Keyword(s):

Control System ◽

Internal Control ◽

Internal Audit ◽

Armed Forces ◽

Research Problem ◽

Scientific Discussion ◽

Logical Sequence ◽

Literary Sources ◽

Internal Control System ◽

Definition Of

The article summarizes the arguments and counterarguments in the framework of scientific discussion on the choice of indicators of the scientific and methodological apparatus for assessing the effectiveness of the system of internal control of the Ministry of Defense of Ukraine. The main purpose of the study is to study the possibility of choosing the indicators of the scientific and methodological apparatus for assessing the effectiveness of the internal control system. The systematization of literary sources and approaches to solving the problems considered in the article showed that the research problem is partly described and needs to be generalized and revised. The urgency of solving this scientific problem lies in the fact that the system of the Ministry of Defense of Ukraine and the Armed Forces of Ukraine actively implements a risk-oriented system of internal control in accordance with the general reform of the defense department to NATO standards. The research of the choice of indicators of the effectiveness of the internal control system in the article is carried out in the following logical sequence: the definition of the corresponding conceptual apparatus is formulated, namely, the interpretation of the terms: "indicator", the available approaches to the assessment of the effectiveness of the internal control system for the presence of indicators; a choice of indicators was made based on the results of their analysis and comparison, which can be offered to the scientific and methodical apparatus for assessing the effectiveness of the internal control system of the Ministry of Defense of Ukraine. The methodical tools of the research were the methods of analysis, synthesis, comparison, induction; the study period is the years from 1976 to the present. The object of the study is the process of assessing the effectiveness of the system of internal control in the system of the Ministry of Defense of Ukraine, since it is not sufficiently investigated. The study presents the results of empirical analysis of the choice of indicators, which showed the possibility of their inclusion in further research. The study empirically confirms and theoretically proves that these indicators must be taken into account when assessing the effectiveness of the internal control system of the Ministry of Defense of Ukraine. The results of the research can be useful for internal control and internal audit specialists.

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FORMS AND METHODS OF CONFLICT OF INTEREST ON THE LAW OF THE RUSSIAN FEDERATION AND FOREIGN COUNTRIES

Journal of Foreign Legislation and Comparative Law ◽

10.12737/23469 ◽

2016 ◽

pp. 0-0

Author(s):

Александр Ноздрачев ◽

Alyeksandr Nozdrachyev ◽

Алексей Автономов ◽

Alyeksyey Avtonomov

Keyword(s):

Conflict Of Interest ◽

Conflicts Of Interest ◽

Conflict Of Interests ◽

Private Interests ◽

Official Position ◽

Foreign Countries ◽

Employer Representative ◽

Actual Meaning ◽

Prevention Methods ◽

Framework System

The conceptual framework system of public administration instills increasingly in terms of actual meaning towards the concept of “conflict of interest” as one of the most important legal means to combat corruption. The article examines the forms and methods of conflict of interests. The authors argue that the primary duty of a person, who sits in for an office that involves the obligation to take measures to prevent and resolve conflicts of interest (the side of conflict of interest), is to notify the representative employer about a risen conflict of interest or the possibility of its occurrence. These persons should carry out their state and official activities in a way to anticipate the risks of conflict of interest and to do it as efficiently as possible to try to “manage conflicts” that may arise. The article substantiates the need to clarify the notice forms of conflict of interests. Along with the assignment of certificates of income, property and property obligations it is suitable to assign a declaration of private interests to the employer representative taking into account the experience of these types of notices in foreign countries. The article analyzes in detail the powers of the representative of employer to prevent and resolve conflicts of interest, including the obligation to inform the person who is a party to the conflict of interests, the existence of dangerous conflict situation and the inadmissibility of certain actions. Preventing or resolving conflicts of interest by the employer representative may consist of: a change in the official position or status of the person who is a party to the conflict of interest; his removal, rejection or disqualification of the notice and other processes for resolving conflicts of interests. The authors propose further improvement of prevention methods and conflict of interests’ settlement based on the foreign countries experience.

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CONFLICT OF INTEREST SETTLEMENT IN THE CONTEXT OF DIGITALIZATION OF THE ECONOMY: WAYS TO PREVENT, IDENTIFY AND RESOLVE

EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA ◽

10.36871/ek.up.p.r.2021.10.01.009 ◽

2021 ◽

Vol 1 (10) ◽

pp. 67-74

Author(s):

Nina F. Kuzovleva ◽

◽

Sergey I. Bogatyryov ◽

Diana E. Simakova ◽

◽

...

Keyword(s):

Conflict Of Interest ◽

Civil Service ◽

Conflicts Of Interest ◽

Economic Security ◽

The State ◽

Regulatory Framework ◽

Integrated Systems ◽

Conflict Of Interests ◽

Judicial Practice ◽

Preventive Methods

The article is devoted to the actual problems of preventing, identifying and resolving conflicts of interest in organizations. The concept of "conflict of interests", causes of the conflict of interests and its signs are considered. An analysis of judicial practice, typical situations of conflict of interests in the civil service and the regulatory framework was carried out, which allows us to determine preventive methods for resolving conflicts of interest. In the conditions of digitalization of the economy, objective necessity of creating integrated systems to minimize possible risks of a conflict of interests that threaten economic security of an individual, society and the state is revealed.

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PREVENTION AND SETTLEMENT OF CONFLICTS OF INTEREST IN THE FIELD OF PUBLIC ADMINISTRATION

The National Transport University Bulletin ◽

10.33744/2308-6645-2021-2-49-057-062 ◽

2021 ◽

Vol 49 (2) ◽

pp. 57-62

Author(s):

Dmytrychenko-Kuleba G ◽

Keyword(s):

Public Administration ◽

Conflict Of Interest ◽

Research Method ◽

Conflicts Of Interest ◽

Comparison Method ◽

Public Governance ◽

Potential Conflict ◽

Conflict Of Interests ◽

Legal Consequences

To date, the study of such categories as conflict of interest, real conflict of interest, potential conflict of interest is important in the field of public administration. After all, the work of the subjects of power in a real or potential conflict of interest interferes with the work of the enterprise, institution, organization. This negatively affects the efficiency, effectiveness of public administration, leads to negative economic and legal consequences. The object of research is the prevention and settlement of conflicts of interest. The purpose of the work is to analyze ways to prevent and resolve conflicts of interest. Research method – method of comparison, method of analysis. KEYWORDS: CONFLICT OF INTERESTS, REAL CONFLICT OF INTERESTS, POTENTIAL CONFLICT OF INTERESTS, PUBLIC GOVERNANCE.

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Analysis of factors of external and internal influence on the efficiency of the functioning of the internal control system

Journal of Scientific Papers Social development & Security ◽

10.33445/sds.2019.9.2.4 ◽

2019 ◽

Vol 9 (2) ◽

pp. 37-56

Author(s):

Костянтин Кустріч ◽

Анатолій Лойшин

Keyword(s):

Control System ◽

Internal Control ◽

Internal Audit ◽

Armed Forces ◽

International Standards ◽

Financial Control ◽

Internal Factors ◽

Starting Point ◽

Internal Control System

The article is of interest to internal control specialists who carry out their activities, both within the system of the Ministry of Defense of Ukraine and the Armed Forces of Ukraine, as well as in other bodies of state power, institutions and organizations of any form of ownership. Also, the results of the study will be useful to the audit team as a service that is directly involved in the process of assessing the effectiveness of the functioning of the internal control system. In the article, through review of normative legal documents, an analysis of the formation and functioning of the internal control system, both in the Ministry of Defense of Ukraine and the Armed Forces of Ukraine, as well as in the state as a whole, was conducted. The place and role of internal control in the general system of state internal financial control, in addition to the internal audit and the harmonization unit within the Ministry of Finance of Ukraine, have been established. The role of the main international standards of state internal control in the development of state internal financial control in Ukraine is determined. It is formulated that the system of internal control in the process of its functioning, like any other system, is exposed both by external and internal factors. The list of existing factors influencing the functioning of the internal control system through analysis in three directions is determined: analysis of the guidelines and the main international standards governing the functioning of the internal control system, the analysis of scientific articles, scientific works in the relevant field, interviewing with specialists of internal control of the Ministry of Defense of Ukraine. The above made it possible to distinguish external and internal factors in the context of the problems of this article. Internal and external factors have been investigated in the context of managed and unmanaged factors. The results of this research are the starting point for solving the scientific task of substantiating the scientific and methodical apparatus for assessing the effectiveness of the functioning of the internal control system in the system of the Ministry of Defense of Ukraine and the Armed Forces of Ukraine.

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Assessment of efficiency indicators of internal control system functioning

Journal of Scientific Papers Social development & Security ◽

10.33445/sds.2019.9.4.9 ◽

2019 ◽

Vol 9 (4) ◽

pp. 120-130

Author(s):

Anatolii Loishyn ◽

Sergey Levchenko ◽

Ivan Tkach ◽

Getmanskii Vitalii

Keyword(s):

Control System ◽

Internal Control ◽

Armed Forces ◽

Urgent Task ◽

Internal Control System ◽

System Functioning ◽

Coefficient Of Concordance ◽

Efficiency Indicators ◽

Shed Light ◽

Final Amount

The results of the research will be useful for audit service professionals directly involved in the process of evaluating the effectiveness of the internal control system and scientists who are concerned with the development of scientific and methodological apparatus for assessing the effectiveness of not only the internal control system, but also other systems in the field of management, as well as all concerned with risk-oriented internal control. The material presented in the study offers theoretical and practical coverage of the results regarding the solution of the urgent task today - the development of a methodological apparatus for evaluating the effectiveness of the internal control system of the Ministry of Defense of Ukraine. In the article, by specifying a certain algorithm, the substantiation and prioritization of indicators, which can testify to the effectiveness of the internal control system in the system of the Ministry of Defense of Ukraine and the Armed Forces of Ukraine, are determined. The object of the study is the process of evaluating the effectiveness of the internal control system in the system of the Ministry of Defense of Ukraine, since it is under-researched. The study presents the results of the empirical justification of the indicators, which confirmed the possibility of taking them into account in further studies. The study proposes to shed light on the results of the use of the peer review method for solving the scientific problem and justify the application of this method. The article presents the results of calculating the final amount for each indicator, calculating the arithmetic mean, selecting the most significant indicators and building a new ranking of indicators. To assess the average consistency of all experts, a concordance coefficient was used when related rankings were available, that is, the same rank values in the estimates of one expert. The significance of the coefficient of concordance by its Pearson test was determined and all 92 indicators were evaluated. By performing the relevant mathematical calculations of the processing of the information obtained on the basis of the questionnaire of experts, six priority indicators were determined in determining the assessment of the effectiveness of the internal control system.

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Conflict of interest: dialectics of a normative “tiered structure”

Russian Journal of Economics and Law ◽

10.21202/2782-2923.2021.4.743-750 ◽

2021 ◽

Vol 15 (4) ◽

pp. 743-750

Author(s):

V. V. Astanin

Keyword(s):

Law Enforcement ◽

Public Relations ◽

Conflict Of Interest ◽

Conflicts Of Interest ◽

Legal Regulation ◽

Operational Definition ◽

Practical Significance ◽

Conflict Of Interests ◽

Dialectical Approach ◽

Legislative Structure

Objective: to carry out a legal and dogmatic analysis of the legislative structure of the “conflict of interests” concept and its constituent categories in order to ensure the applied tasks of effective law enforcement and prevention of corruption risks determined by a conflict of interests.Methods: the dialectical approach to the cognition of socio-legal phenomena, which allows identifying the unity of opposites in the legal categories that form the conflict of interests concept; the formal-logical method of scientific cognition, presented in the legal-dogmatic analysis of legislative norms; the method of operationalization of concepts.Results: the conducted comparative legal research, expressed in a combination of methods of analysis and synthesis of legal categories aimed at obtaining comparative knowledge, allows correlating their content with respect to the “conflict of interests” concept in proportion to the goals of law enforcement. A legal and linguistic analysis of legal categories has been carried out, the totality of which forms the content of the “conflict of interests” concept. Abstract and definite norms of categories are highlighted in the context of the proof necessary to ensure their connection (presence and absence) with legal facts.Scientific novelty: the term “normative ‘tiered structure’” was introduced into the scientific circulation of legal science, which comprehensively reflects the operational definition of the complex socio-legal phenomena described in composite legal categories. The theoretically presented phenomenon of the normative “tiered structure” conflict of interest in the discreteness of its constituent concepts and dispositive legal categories causes high risks of distortion or erroneous interpretations. These risks are formed out of court, initially registered in the decisions of the conflicts of interest settlement commissions. Prevention of such risks is ensured not only by the involvement of experts who, in addition to legal knowledge and professional-industry knowledge, also have moral and ethical foundations, the bearers of which are the arbiters of precedent law enforcement.Practical significance: the main provisions of the article can be used in practical activities to provide evidence of de jure manifestations of a conflict of interests. The revealed regulatory collisions and the incomplete legal regulation of public relations in the sphere of “personal interest” require improving the anti-corruption legislation in terms of simplifying the concept used for law enforcement purposes.

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Organizational management of risky companies in the context of the perspective advancement of the system and resource security of the Ministry of Defence of Ukraine

VUZF Review ◽

10.38188/2534-9228.20.4.07 ◽

2020 ◽

Vol 5 (4) ◽

pp. 59-69

Author(s):

Anatolii Loishyn ◽

Oleksandr Shevchenko ◽

Ivan Troyan ◽

Volodymyr Mazur ◽

Serhii Diudenko

Keyword(s):

Risk Management ◽

Internal Control ◽

Systems Approach ◽

Armed Forces ◽

Organizational Management ◽

National Standards ◽

Financial Control ◽

Main Attention ◽

Internal Control System ◽

Resource Security

The article arouses interest among managers and scientists who deal with the problems of internal control and risk management. The study is aimed at managers who require clarification of the nature of risk-based internal control. The regulation of the system of state internal financial control. The prerequisites for its formation are analyzed and the main elements are characterized. The article reveals the tendencies and vector of development of internal control and risk management in the Ministry of Defense of Ukraine and the Armed Forces of Ukraine in the context of the implementation of the tasks assigned to the Ministry of Defense and the Armed Forces of Ukraine. The main attention in the article is paid to the analysis of the guiding documents regulating the issues of internal control and risk management and their relationship with the documents of defense planning. A retrospective review of the development of risk-oriented internal control was carried out. The research used methods of analysis, synthesis, and systems approach. The number of normative legal acts and other documents have been determined that directly regulate the issues of internal control. The main national standards of risk management have been determined, the publication of which has become an essential step in the development of risk management. The elements of the internal control system are revealed and their brief description is provided. A certain algorithm and procedure for the development of organizational documents on internal control issues in the institution.

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Strengthening Supervision Government Internal Control System (SPIP) at The General Election Commission East Kalimantan Province

Iapa Proceedings Conference ◽

10.30589/proceedings.2021.511 ◽

2021 ◽

pp. 1

Author(s):

Amaliah An Nuur ◽

Daryono Daryono

Keyword(s):

Control System ◽

Internal Control ◽

Conflicts Of Interest ◽

Task Force ◽

General Election ◽

East Kalimantan ◽

Road Map ◽

Internal Control System ◽

The Government ◽

Election Commission

The purpose of this research is to know and understand specifically about the implementation of bureaucratic reform through the Grand Design 8 Bureaucratic Road Map, one of which will be examined, namely Strengthening Supervision through a form of system application called the Government Internal Control System ( SPIP) with its implementation at the Provincial General Electi on Commission Secretariat. East Kalimantan. This research was conducted to determine the extent to which this control system was successfully implemented at the General Election Commission of East Kalimantan Province with the technical implementation by the Government Internal Control System Task Force Team with a comprehensive assessment covering Gratification, Public Complaints, Conflicts of Interest, Integrity Zones, and SPIP itself. Research Methodology in the form of Qualitative Creswell using Phenom enological Data Analysis in the form of an understanding of experience about phenomena, the existence of philosophy and sociology, and interviewing informants as the owner of research sources who will provide statements, meanings, and general descriptions of experiences. The number of informants in the study was 14 (fourteen) people consisting of 13 (thirteen) people from the General Election Commission of East Kalimantan Province and 1 (one) person from the Inspectorate General of the General Elections Commission of the Republic of Indonesia.

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