scholarly journals INTERNAL AUDIT AND QUALITY OF FINANCIAL REPORTING IN THE PUBLIC SECTOR: THE CASE OF UNIVERSITY FOR DEVELOPMENT STUDIES

2021 ◽  
Vol 3 (1) ◽  
pp. 1-23
Author(s):  
Iddrisu Abdulai ◽  
Andrew Salakpi ◽  
Dr. Théophile Bindeouè Nassè
Keyword(s):  
Control System ◽  
Public Sector ◽  
Financial Reporting ◽  
Internal Control ◽  
Internal Audit ◽  
Development Studies ◽  
Fraud Prevention ◽  
Internal Control System ◽  
Information And Communication ◽  
The University

Many corporate failures have occurred over the years as a result of poor financial reporting practices that have eluded investors and other consumers of financial data. The research used the University for Development Studies (UDS) as a case study. The study focused on three main goals: identifying emerging determinants of quality financial reporting, examining the efficacy and adequacy of UDS's internal control structure, and determining how much Internal Audit contributes to quality financial reporting. The research used a descriptive survey template and a sample size of 70 people who were chosen using purposive and stratified sampling techniques. To achieve objectives one and two, the analysis used binary regression, while to achieve objective three, the Best (2005) index was updated and used. Financial reporting accuracy, a computerized accounting system, and personnel competence were found to be determinants of quality financial reporting in the study. It was discovered that UDS' internal control system is ineffective since two of the five main components that make up an efficient internal control system, namely control environment and information and communication, are not properly implemented. The study found that UDS' internal audit reflects an average level of fraud prevention in terms of the robustness of auditing processes and fraud prevention indicators, with the remaining indicators indicating a high level of fraud prevention. Overall, UDS' internal auditing reveals a high degree of prevention. The University for Development Studies (UDS) should analyze, define, and enforce control setting, information, and communication components of the internal control system that are appropriate for their work processes, as well as enhance the existing components, according to the report. Keywords: Internal Audit, Financial Reporting, Public Sector, Ghana.

scholarly journals PELAKSANAAN FUNGSI APARAT PENGAWAS INTERN PEMERINTAH (APIP) UNTUK MENUNJANG TINGKAT KEWAJARAN LAPORAN KEUANGAN PEMERINTAH KOTA MANADO

2016 ◽  
Vol 7 (2) ◽  
Author(s):  
Merry Inggrid Siwy ◽  
David P.E. Saerang ◽  
Herman Karamoy
Keyword(s):  
Control System ◽  
Local Government ◽  
Financial Reporting ◽  
Internal Control ◽  
Financial Management ◽  
Internal Audit ◽  
Financial Statements ◽  
Internal Auditor ◽  
Internal Control System ◽  
The Government

Internal Audit is the whole process of audit activities, the Review, evaluation, monitoring and supervisory activities other against the implementation of tasks and functions of the organization in order to provide reasonable assurance that the activities have been carried out in accordance with the benchmarks that have been set effectively and efficiently for the benefit of the leadership to Realize good governance.Accountability and transparency in the new government could be achieved if all levels of leadership controlling activities on the overall activities in their respective agencies . Internal control system ( SPI ) is a process that is integral to the actions and activities carried out continuously by the management and all employees to provide reasonable assurance on the achievement of organizational goals through effective and efficient , the reliability of financial reporting , the safeguarding of state assets, and compliance with legislation. To strengthen and support the effectiveness of internal control over the SPI made ​​implementation of tasks and functions of government agencies including state audits carried out by the internal control official Government ( APIP ) .The auditor's responsibility to detect fraud or irregularity embodied in the planning and execution to obtain reasonable assurance about whether the financial statements have been prepared in accordance with established standards.The purpose of this study was to analyze the functions of Government Internal Supervisory Apparatus (APIP) / Internal Auditor in supporting reasonable levels of Local Government Finance Report Manado City. Respondents were selected are few skilled examiner at the office of the Inspectorate of Manado. Approach Using Qualitative methods Ethnography.APIP functions that work well to prevent fraud , to produce valuable output to be input to the external auditor , the executive and the legislature to improve financial management and accountability in the area of ​​the future . Eksternal Auditor may use the results from the monitoring APIP mainly reviews the financial statements of the government , supporting the management of local government in implementing the recommendations and improvements  Internal control system . APIP professional and independent encourage increased transparency and accountability in financial management to improve the fairness of the financial statements . Keywords: Government Internal Supervisory Apparatus, fraud detection, the fairness of the financial statements

scholarly journals PENGARUH EFEKTIVITAS PENGENDALIAN INTERN, ASIMETRI INFORMASI DAN KESESUAIAN KOMPENSASI TERHADAP KECENDERUNGAN KECURANGAN AKUNTANSI (Studi Empiris Kantor Pusat Bank Perkreditan Rakyat Di Kota dan Kabupaten Malang)

2019 ◽  
Vol 13 (1) ◽  
pp. 11
Author(s):  
Restu Putri Pamungkas ◽  
Istutik Istutik
Keyword(s):  
Control System ◽  
Information Asymmetry ◽  
Financial Reporting ◽  
Internal Control ◽  
Profit Sharing ◽  
Islamic Banks ◽  
Accounting Fraud ◽  
Internal Control System ◽  
Information And Communication ◽  
Study Offer

The research aims to examine the effect of the effectiveness of internal control on trends in accounting fraud, examine the effect of information asymmetry on trends in accounting fraud, examine the effect of compensation appropriateness on accounting fraud trends. Qualitative research was carried out through in-depth surveys and interviews with the management of Islamic banks in Malang, customers, and academics about the need for an internal control system that is in accordance with the characteristics of Islamic banks. The development of an internal control system using the COSO (Committee of Sponsoring Organizations of The Treadway Commissions) framework was adopted and adapted to the characteristics of Islamic banks. The results of the study offer a model of an Islamic bank's internal control system through five components of the COSO, namely (1) the control environment, (2) risk assessment, (3) control activities, (4) information and communication, and (5) monitoring that will benefit banks sharia to achieve strategic and operational goals, accuracy of financial reporting, and compliance with applicable policies and laws. Thus it will be able to help eliminate risks so that the performance of profit-sharing based financing can also be improved

scholarly journals ORGANIZATION OF INTERNAL CONTROL BY BUDGET ORGANIZATIONS (INSTITUTIONS) AS A BUDGETARY FUNDS MANAGER

2019 ◽  
pp. 689-698 ◽  
Author(s):  
K. Proskura
Keyword(s):  
Control System ◽  
Internal Control ◽  
Internal Audit ◽  
Control Measures ◽  
Practical Implementation ◽  
Parent Organization ◽  
Control Units ◽  
Internal Control System ◽  
Information And Communication ◽  
Five Elements

This article is devoted to the study of the organization and formation of the system of internal control by budget organizations (institutions), the definition and substantiation of the components and procedures of internal control, as well as the development of a mechanism for the practical implementation of this system in a budget institution (organization). The construction of an internal control system of a budgetary institution is based on the components: control environment (construction of the structure of the internal control system and its subordination, responsibilities and powers of internal controllers, requirements to their competence, their independence with respect to utsanov), risk management (identification and assessment of the probability and risk impact on the institution’s activities, costs, the risk response, in comparison with the resulting benefit from its reduction), control measures (which procedures and measures are implemented by the institution in order to ensure the effectiveness of internal control), information and communication, monitoring (reporting of internal control units and checking the results of its work by the supreme body). The organizational principles for the construction of internal control, the principles on which internal control is to be based, as well as the essence of the five elements of internal control, in accordance with which internal control is to be carried out by the administrators of budget funds, is regulated in the Methodological Recommendations on the organization of internal control by budgetary funds managers. in their institutions and in subordinate budget institutions (approved by the order of the Ministry of Finance of Ukraine dated September 14, 2012 No. 995). An important factor in the effectiveness of the internal control system’s operation is the accountability of the internal control units to the manager and parent organization, embodied in the provision of written reports on the results of control measures carried out with a certain periodicity, as well as the introduction of a mechanism for monitoring the elimination of identified deficiencies and violations. The existence and effectiveness of the internal control system’s functioning forms the basis for ensuring the effectiveness of the organization, including the efficient use of economic resources. Key words: budgetary institution, internal control, internal control system, internal audit department.

scholarly journals The Analysis of Internal Control Implementation of Zakat Institutions

2019 ◽  
Author(s):  
Dita Andraeny ◽  
Devi Narulitasari
Keyword(s):  
Control System ◽  
Financial Reporting ◽  
Internal Control ◽  
Non Profit ◽  
Study Approach ◽  
Descriptive Research ◽  
Internal Control System ◽  
Information And Communication ◽  
Qualitative Descriptive ◽  
Multiple Case

The implementation of internal control system is very important not only in profit oriented firms but also in non profit organizations including zakat institution. Internal control system ensures the reliability of financial reporting system, protects organization’s assets from assets missappropriation, and also minimizes the occurence of fraud. This study aims to evaluate the implementation of internal control of zakat institutions in Surakarta. The objects of this research are LAZ Dompet Peduli Umat Daarut Tauhiid (DPU DT) Solo, LAZISMU Solo, and BAZNAS Solo. The objects of this study are based on convenience sampling. This research is a qualitative descriptive research with multiple case study approach. The result of this study indicates that in general, all zakat institutions observed have implemented the internal control system in terms of control environment, risk assessment, control activities, information and communication and supervisory activities. However, there is still weakness in internal control that related to the aspect of segregation of tasks that has not been done completely. In addition, those three zakat institutions did not have a flow chart document for the conducted transaction and one of them has not implemented yet about the authorization system and printed serial number documents.

scholarly journals Internal control instruments in the accounting policy of public sector entities

2013 ◽  
pp. 17-29
Author(s):  
Rasa Kanapickienė
Keyword(s):  
Control System ◽  
Public Sector ◽  
Internal Control ◽  
Internal Audit ◽  
Legal Issues ◽  
Many Instruments ◽  
Internal Control System ◽  
The Law ◽  
The Republic ◽  
Accounting Policy

The main legal issues regarding internal control of a public legal entity are regulated by the Law of Internal Control and Internal Audit of the Republic of Lithuania (LR) which designates that one of the aims of internal control is to ensure the reliability and completeness of information and reports. The main regulatory enactments of accounting determine many instruments of internal control which must be ensured by the accounting policy adopted in a public sector entity. Regulatory enactments cover different spheres, i.e. accounting and internal control. These spheres are closely interrelated; therefore, it is important to examine the interrelations between the accounting policy and internal control system. The object of the research is internal control instruments in the accounting policy of public sector entities. The aim of the research is to examine the regulation of internal control instruments by legal acts with regard to the accounting policy of a public sector entity. The article provides the analysis of the accounting organization instruments and internal control instruments of accounting technique which are regulated by the Law of Accounting of LR (2001) and the Law of Public Sector Accountability of LR (2007). The paper systematizes the internal control instruments of accounting policy.

scholarly journals THE EFFECT OF QUALITY OF INTERNAL AUDIT AND EFFECTIVENESS OF INTERNAL CONTROL SYSTEMS ON GOOD CORPORATE GOVERNANCE IN FINANCE COMPANIES

2020 ◽  
Vol 5 (1) ◽  
pp. 56
Author(s):  
Edwin Theo Mangasih ◽  
Margani Pinasti ◽  
Icuk Rangga Bawono
Keyword(s):  
Corporate Governance ◽  
Control System ◽  
Internal Control ◽  
Internal Audit ◽  
Roles And Responsibilities ◽  
Good Corporate Governance ◽  
Internal Control System ◽  
Information And Communication ◽  
Positive Effect

The purpose of this research is to analyze the effect of quality of internal audit and the effectiveness of internal control system to corporate governance in finance companies. Quality of internal audit was measured by performance, competency and objectivity. The effectiveness of internal control system was measured by control environment, risk assessment, control activities, information and communication and monitoring. The last variable is good corporate governance was measured by corporate governance framework, protection of shareholders, role of stakeholders, transparency of information and roles and responsibilities of the board of commissioners and board of directors. There were 30 finance companies that become a sample in this research. This study used multiple linear regression as the method of analysis. The result of this research indicated that (1) The quality of internal audit has a positive effect on good corporate governance variable and (2) The effectiveness of internal control system has a positive effect on good corporate governance variable. The result of this research gives implication for internal parties must maintain and improve the existence of the quality of internal audit and  the effectiveness of internal control system to achieve a more optimal GCG implementation in company operations. The second implication is for government is expected to be more active in monitoring the activities of finance companies, especially in terms of corporate governance.

Pengaruh Kualitas Sumber Daya Manusia, Pemanfaatan Teknologi Informasi, Dan Sistem Pengendalian Intern Terhadap Ketepatwaktuan Pelaporan Keuangan Pemerintah Desa

2018 ◽  
Vol 26 (2) ◽  
pp. 131-143
Author(s):  
Marlinawati Marlinawati ◽  
Dewi Kusuma Wardani
Keyword(s):  
Information Technology ◽  
Control System ◽  
Human Resources ◽  
Financial Reporting ◽  
Internal Control ◽  
Positive Influence ◽  
Internal Control System ◽  
Speed Up ◽  
Village Government

The purpose of this research is to know the influence between the Quality of Human Resources, Utilization of Information Technology and Internal Control System Against Timeliness of Village Government Financial Reporting at Gunungkidul Regency. This research is causative research. The population is the village government in Gunungkidul Regency, especially in Gedangsari subdistrict. Criteria of respondents in the study were to village and village apparatus. We use questionnaire to collect data. We use multiple regression with SPSS program version 16.0 to analyze data. We find that quality of human resources and internal control system have a positive influence on the timeliness of village government financial reporting. On the other hand, utilization of information technology does not influence the timeliness of village government financial reporting. These imply that the quality of human resources and internal control system can speed up the preparation of village government financial reporting.

Effect Technology Information On Quality Financial Statement With Internal Control As Moderating Variable

2021 ◽  
Vol 2 (1) ◽  
pp. 9-13
Author(s):  
Aris Eddy Sarwono ◽  
Asih Handayani
Keyword(s):  
Information Technology ◽  
Control System ◽  
Financial Reporting ◽  
Internal Control ◽  
Local Governments ◽  
Sampling Technique ◽  
Financial Statement ◽  
Financial Reports ◽  
Internal Control System

The problem with the low quality of financial reports in local governments is the reason this research was conducted. This research was conducted with the aim of analyzing the use of information technology on the quality of financial reports by considering the internal control system (SPI) factor. The location of this research is in the Karisidenan Surakarta area which includes 6 districts and 1 city. The population of this research is all state civil servants (ASN) in local governments who work in accounting. The sampling technique was using purposive sampling method. The results showed that the use of information technology had a positive effect on the quality of financial reporting in local governments, while the internal control system moderated the effect of the use of information technology on the quality of financial reporting in local governments.

scholarly journals KEEFEKTIFAN AUDIT INTERNAL PEMERINTAH DAERAH

2017 ◽  
Vol 20 (1) ◽  
pp. 33
Author(s):  
Hadi Mahmudah ◽  
Bambang Riyanto LS
Keyword(s):  
Control System ◽  
Local Government ◽  
Control Systems ◽  
Internal Control ◽  
Positive Impact ◽  
Internal Audit ◽  
System Management ◽  
Management Support ◽  
Internal Control System ◽  
Audit Effectiveness

Penelitian ini menguji efektifitas sistem pengendalian intern, dukungan manajemen dan audit professionalism terhadap keefektifan audit internal. Sampel dalam penelitian ini adalah 39 Inspektorat Daerah dari enam Provinsi. Penelitian ini menggunakan regresi berganda untuk menganalisis data. Hasil penelitian menunjukkan bahwa sistem pengendalian intern dan dukungan manajemen berpengaruh secara positif terhadap keefektifan audit internal. Penelitian ini gagal memberikan bukti empiris audit professionalism berpengaruh terhadap keefektifan1 audit internal. Penelitian ini memperkaya penelitian yang sudah ada terkait keefektifan audit internal dan penekanan pentingnya sistem pengendalian intern di pemerintah daerah.This study examined the effectiveness of internal control system, management support, and audit professionalism on internal audit effectiveness of local government. The sample consists of 39 regional inspectorates of six provinces in Indonesia. By using multiple regressions, this study found that internal control system and management support has positive impact on the effectiveness of the internal audit. However, there is no support for the audit professionalism on internal audit effectiveness. This study enriches existing research related to the effectiveness of the internal audit and emphasis the importance of internal control systems in local government.

scholarly journals The Effect of the Internal Control System Effectiveness and the Quality of Financial Reporting and Its Impact on Fraud Prevention of Bandung Regency

2021 ◽  
Vol 5 (1) ◽  
pp. 13
Author(s):  
Yasmin Yasmin ◽  
Srihadi Winarningsih ◽  
Sri Mulyanti
Keyword(s):  
Corporate Governance ◽  
Control System ◽  
Internal Control ◽  
Financial Statements ◽  
Research Approach ◽  
Fraud Prevention ◽  
Good Corporate Governance ◽  
Internal Control System ◽  
System Effectiveness

The corruption has emerged as the main topic of discussion in many countries and fraud prevention becomes important as well. The 2018 Annual Report of the Corruption Eradication Commission (KPK) revealed that in general the KPK's enforcement action over the past 10 years showed a significant increase. This was also confirmed by President Jokowi that one of the big problems of Indonesia is related to Corruption This study is aimed to discover fraud prevention from the perspective of financial statements through the internal control system effectiveness and good corporate governance implementation.This study uses an explanatory research approach to analyze how one variable affects other variables through hypothesis testing. The data was collected using a questionnaire which distributed and filled by all regional authorities in Bandung Regency and then analyzed through path analysis using SPSS data processing tools. The results indicate that the effectiveness of internal control systems along with the good corporate governance implementation and the quality of financial statements have a positive effect on fraud prevention and partially the effectiveness variable of the internal control system has no significant effect, while the other two variables have a significant effect.

Sign in / Sign up

Export Citation Format

Share Document