Pharmacy Internal Controls: A Call for Greater Vigilance during the COVID-19 Pandemic

For businesses that store physical goods, managing product inventories and financial cost accounting controls are critical. Pharmacies are under considerable scrutiny, due to the nature of their merchandise, making internal controls even more vital. Due to the emergence of COVID-19 and government mitigation strategies, the US economy has seen significant macro- and microeconomic effects. COVID-19 has changed the pharmacy working environment, which could theoretically increase rates of employee drug diversion. Therefore, better inventory management could reduce the misuse of pharmaceutical drugs from fraudulent and drug diversion activities. The author explored secondary findings to create a multidisciplinary conceptual analysis of the reasons why internal controls executed with greater diligence may be needed to avoid damaging financial, legal, and health outcomes. The author also provides a review of available internal control methods that can be used to mitigate diversion.

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ANALISIS EFEKTIVITAS PENGENDALIAN INTERN PERSEDIAAN BARANG DAGANGAN PADA PT. KIMIA FARMA APOTEK 74 MANADO

GOING CONCERN : JURNAL RISET AKUNTANSI ◽

10.32400/gc.12.2.17548.2017 ◽

2017 ◽

Vol 12 (2) ◽

Author(s):

Sitti Amanah Tontoli ◽

Inggriani Elim ◽

Victorina Z. Tirayoh

Keyword(s):

Inventory Management ◽

Internal Control ◽

Good Control ◽

Internal Controls ◽

Retail Sector ◽

Internal Auditor ◽

Important Resource ◽

Trading Company ◽

Pharmacy Management ◽

And Storage

At a trading company, inventory is an important resource for the survival of the company because in addition to an asset whose value is greater than other current assets is also due to the main source of revenue comes from the sale of inventory. Therefore, effective internal controls are needed to manage the inventory to avoid errors and irregularities. The company is engaged in the pharmaceutical retail sector to manage existing company pharmacies in an effort to increase sales contribution, so that management of inventory management becomes important. The purpose of this study is to determine whether the internal control of merchandise inventory has been effective. The object of this research is PT. Kimia Farma 74 Manado. This research uses descriptive qualitative The results showed that the internal control of inventory at PT. Kimia Farma Apotek has been effective in applying pharmacy management management, which can be seen in the implementation of the elements of adequate internal control, good control of the inventory. However, there are still weaknesses in the form of duplicate duties on the function of receipt and storage of merchandise inventory and cash, as well as internal auditor functions captured by the accounting and finance.

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Analysis of Inventory Management in Internal Controls Perspective

Advanced Materials Research ◽

10.4028/www.scientific.net/amr.629.972 ◽

2012 ◽

Vol 629 ◽

pp. 972-975

Author(s):

Yuan Yuan Song

Keyword(s):

Inventory Management ◽

Internal Control ◽

Internal Controls ◽

Control Measures ◽

And Storage

Inventory management is an important part of enterprise internal control. This paper analyzes based on the internal control perspective the internal control measures on the inventory during the stage of procurement, inspection and storage, delivery, warehousing and storage.

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Procurement fraud in the US Department of Defense

Managerial Auditing Journal ◽

10.1108/maj-11-2015-1267 ◽

2016 ◽

Vol 31 (6/7) ◽

pp. 748-767 ◽

Cited By ~ 5

Author(s):

Juanita M. Rendon ◽

Rene G. Rendon

Keyword(s):

Internal Control ◽

Department Of Defense ◽

Public Procurement ◽

Internal Controls ◽

Contract Management ◽

Monitoring And Control ◽

Content Type ◽

The Us ◽

Us Government ◽

Procurement Fraud

Purpose This paper aims to explore selected real-world procurement fraud incidents in the US Department of Defense (DoD) and the implications of these incidents to the DoD’s contracting processes and internal controls. Design/methodology/approach This paper analyzes actual procurement fraud incidents and identifies in which phase of the contract management process the fraud occurred and which internal control component was associated with the fraud scheme. Findings The fraud incidents generally occurred during the source selection and the contract administration phases and involved the control activities, monitoring and control environment components of internal control. Research limitations/implications The fraud incidents are analyzed using contract management and internal control frameworks adopted by the US Government. Recommendations are developed for improving contracting processes and internal controls as an approach to deterring and detecting procurement fraud and may be applicable to other international public procurement bodies. Practical implications Governments are ensuring auditability in public procurement as a means of improving agency governance. The research findings suggest that an emphasis on capable contracting processes and effective internal controls should be adopted for fighting procurement fraud. Social implications Ensuring auditability in public procurement has a far-reaching effect in society. The value of capable processes and effective internal controls is gaining much attention in public agencies, as they strive for accountability, integrity and transparency in their governance processes. Originality/value By emphasizing capable processes and effective internal controls, governments can apply a strategic approach to detecting and deterring fraud and thus ensure that government monies are spent in the most effective and efficient ways.

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Analyzing procurement fraud in the US Navy

Journal of Financial Crime ◽

10.1108/jfc-09-2021-0207 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Juanita M. Rendon ◽

Rene G. Rendon

Keyword(s):

Internal Control ◽

Internal Controls ◽

Public Agencies ◽

Content Type ◽

Contract Administration ◽

Source Selection ◽

The Us ◽

Us Navy ◽

Contracting Phase ◽

Procurement Fraud

Purpose The purpose of this paper is to analyze an ongoing fraud case in the US Navy involving the procurement of ship-husbanding services. The fraud acts will be analyzed from three perspectives–contract life cycle, internal controls and fraud schemes. Design/methodology/approach A data search was conducted to collect publicly available documents issued by the US Department of Justice (DOJ). A content analysis was used to analyze the fraud acts by aligning them with the contracting phase, internal control component and fraud scheme category. Findings The majority of the fraud occurred in the contracting phases of contract administration, followed by procurement planning and then source selection. The majority of the fraud occurred because of internal control component weaknesses in the control environment followed by information and communications. The majority of the fraud was aligned with the fraud scheme of collusion, followed by billing, cost and pricing. Research limitations/implications Because this is an ongoing investigation, additional DOJ information will become available and provide additional insight on the contracting phase, internal control component and fraud scheme. Practical implications The analysis suggests that the Navy’s lack of trained personnel, capable processes and effective internal controls result in the increased vulnerability to procurement fraud in its husbanding support services program. Originality/value To the best of the authors’ knowledge, this study is the first to analyze fraud through the lens of auditability theory, specifically by the contracting phase and internal control component. Public agencies can enhance fraud detection and deterrence efforts by understanding how weaknesses in contracting processes and internal controls may increase an organization’s vulnerabilities for fraudulent activities.

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The Severity of Internal Controls over Financial Reporting Deficiencies: Differences among Types and Industries

FINANCIAL REPORTING ◽

10.3280/fr2014-001003 ◽

2014 ◽

pp. 55-77

Author(s):

Tatiana Mazza ◽

Stefano Azzali

Keyword(s):

Information Technology ◽

Financial Reporting ◽

Internal Control ◽

Service Industry ◽

Listed Companies ◽

Internal Controls ◽

Service Companies ◽

Finance Industry ◽

Material Weaknesses ◽

Fixed Assets

This study analyzes the severity of Internal Control over Financial Reporting deficiencies (Deficiencies, Significant Deficiencies and Material Weaknesses) in a sample of Italian listed companies, in the period 2007- 2012. Using proprietary data the severity of the deficiencies is tested for account-specific, entity level and information technology controls and for industries (manufacturing and services vs finance industries). The results on ICD severity is compared with one of the most frequent ICD (Acc_Period End/Accounting Policies): for account-specific, ICD in revenues, purchase, fixed assets and intangible, loans and insurance are more severe while ICD in Inventory are less severe. Differences in ICD severity have been found in the characteristic account: ICD in loan and insurance for finance industry and ICD in revenue, purchase for manufacturing and service industry are more severe. Finally, we found that ICD in entity level and information technology controls are less severe than account specific ICD in all industries. However, the results on entity level and information technology deficiencies could also mean that the importance of these types of control are under-evaluated by the manufacturing and service companies.

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PENGARUH PDRB DAN UKURAN TERHADAP INTERNAL CONTROL PEMERINTAH DAERAH DENGAN PAD SEBAGAI INTERVENING

ProBank ◽

10.36587/probank.v3i1.250 ◽

2018 ◽

Vol 3 (1) ◽

pp. 64-75

Author(s):

Prima Utama Wardoyo Putro

Keyword(s):

Internal Control ◽

Central Government ◽

Control Variable ◽

Secondary Data ◽

Internal Controls ◽

Regional Government ◽

Path Testing ◽

Size Growth ◽

Fiscal Balance ◽

Research Populations

Law No 32 year on 2004 about Regional Government and Law No 33 years on 2004 about Fiscal Balance between the Central Government and Regional Government are a new regulation relating to the implementation of regional autonomy in Indonesia. Giving the authority to manage its own region required an internal control system that can monitor of all by central government. The problem in this study is: Is there are any influence between growth, size, and PAD through Regional Government Internal Controls weakness with PAD as an intervening variable. The research populations are the financial statements and reports on the results of the entire province in Indonesia totaling 33 provinces. Source of data which are used are secondary data, and data collection by using the documentation method. The results of partial testing showed that PAD and Growth have significant affects to the Internal Controls, whereas size has not significant effect. Simultaneous testing showed a significant effect between the independent and dependent variables. The test results path testing showed that growth has no significant effect to internal control through PAD as an intervening variable and size has a significant effect to internal control variable through PAD as an intervening variable. The results of determinant coefficient by simultan test amount 28.7%. Its mean that Internal Control can be explained by Growth, Size and PAD, the remaining 71.3% influenced by factors other than study. Keyword: Internal Control, Size, Growth, and Income

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