The Effectiveness of Internal Control Systems of Banks. The Case of Ghanaian Banks

2014 ◽  
Vol 4 (2) ◽  
pp. 377 ◽  
Author(s):  
Philip Ayagre ◽  
Ishmael Appiah-Gyamerah ◽  
Joseph Nartey
Keyword(s):  
Social Sciences ◽  
Control Systems ◽  
Internal Control ◽  
Internal Controls ◽  
Control Environment ◽  
Internal Control System ◽  
Monitoring Activities ◽  
Analyse Data ◽  
Strongly Agree ◽  
System Effectiveness

This study evaluated the control environment and monitoring activities components of Internal Control Systems of Ghanaian Banks using COSO’s principles and attributes of assessing the effectiveness of internal control systems. A five point Likert scale was used to measure respondent’s knowledge and perception of internal controls and the bank’s internal control system effectiveness. Responses ranged from strongly disagree to strongly agree, where 1 represented strongly disagree (SD) and 5 represented strongly agree (SA). Statistical Package for Social Sciences (SPSS) was used to analyse data and presented in the form of means and standard deviations for each question and each section of the questionnaire. The study found out that, strong controls exist in the control environment and monitoring activities components of the internal control systems of banks in Ghana. The two components were highly rated by respondents with average means of 4.72 and 4.66 respectively. The study recommended that boards of banks in Ghana should not be complacent about the findings but should work hard to   ensure continuous ongoing and separate internal control monitoring to ascertain that controls really exist and are functioning properly.

scholarly journals INTERNAL CONTROL SYSTEMS AND ITS RELATIONSHIPS WITH THE FINANCIAL PERFORMANCE IN TELECOMMUNICATION COMPANIES “A CASE STUDY OF ASIACELL”

2018 ◽  
Author(s):  
Amanj Mohamed Ahmed ◽  
Akram Ahmed Muhammed
Keyword(s):  
Risk Assessment ◽  
Control System ◽  
Financial Performance ◽  
Control Systems ◽  
Internal Control ◽  
Internal Controls ◽  
Control Environment ◽  
Independent Variables ◽  
Internal Control System ◽  
Information And Communication

The overall objective of this study was to establish the effects of internal controls on the financial performance of Asiacell as a telecommunication company in Kurdistan Region of Iraq. This was achieved by looking at the effect of control environment, risk assessment, information and communication, control activities and monitoring on the return on asset of the selected company. The study used both primary and secondary techniques to collect the data. In the model, the dependent variable is financial performance while the independent variables are the components of internal controls. After analyzing the audited financial statements and filling the questioners by the employees of the selected company, the findings of the study showed that there is a significant relationship between internal controls and financial performance. The dependent and the independent variables in the study indicated a relationship with control environment, risk assessment. Information and communication and control activities illustrated a positive relationship with the financial performance while monitoring showed a negative relationship with financial performance. The study also found that, Asiacell had invested on effective internal control systems, thus, it had a better financial performance as compared to the related firms that had a weak internal control system. The study further recommends that the governing body, possibly supported by the audit committee, should ensure that the internal control system is periodically monitored and evaluated by the respective managers.

scholarly journals EVALUASI SISTEM PENGENDALIAN INTERN PEMERINTAH ATAS PELAYANAN PERIZINAN PADA DINAS PENANAMAN MODAL DAN PELAYANAN TERPADU SATU PINTU DAERAH PROVINSI SULAWESI UTARA

2020 ◽  
Vol 15 (4) ◽  
pp. 541
Author(s):  
Magfirah Rahman ◽  
Grace B. Nangoi ◽  
Stanley Kho Walandouw
Keyword(s):  
Risk Assessment ◽  
Control System ◽  
Internal Control ◽  
Government Regulation ◽  
Central Government ◽  
Control Environment ◽  
North Sulawesi ◽  
Internal Control System ◽  
Information And Communication ◽  
Monitoring Activities

Government in carry out public services such as licensing service or other services not escape the chances of risks, such as fraud and maladministration, then to minimize this risks, it takes an integral system that can control the implementation of service. Government Internal Control System (GICS) implementation whole in the central government and local government. GICS has an important role in the implementation of services by government agencies. The purpose of research was to evaluate internal control on licensing service in the Investment and One Stop Integrated Service Office of North Sulawesi based of Government Regulation Number 60 of 2008 regarding Government Internal Control System (GICS) consists of five components; control environment, risk assessment, control activities, information and communication and monitoring activities. The type of research used qualitative descriptive method. Data were collected by observation, interviews and documentation. The results showed that component of control activities which is physical asset was not in accordance with Government Regulation Number 60 of 2008, this difference because the security of assets was not running well. For other components, such as control environment, risk assessment, information and communication and monitoring activities, evaluation results indicate it was in accordance with Government Regulation Number 60 of 2008.

scholarly journals Evaluasi Sistem Pengendalian Internal Penerimaan Kas pada Apotek Kimia Farma 307 Banyuwangi

2018 ◽  
Vol 5 (1) ◽  
pp. 76
Author(s):  
Vicky Roh Idhofi ◽  
S. Sudarno ◽  
Agung Budi S.
Keyword(s):  
Control System ◽  
Control Systems ◽  
Internal Control ◽  
Qualitative Method ◽  
Internal Controls ◽  
Cash Income ◽  
Accounting System ◽  
Internal Control System ◽  
A Company ◽  
Collection Methods

Internal control system in a company is one form of action used to safeguard property owned by the company. The existence of an internal control system is expected to prevent the risk of errors occurring either intentional or without the element of intent. The risk of such errors can be derived from the various parties concerned. This is one reason that good procurement control system in an accounting system in this case is in the system of cash receipts. From the observation while at Kimia Farma 307 Banyuwangi seen that in a system of cash receipts from cash income services namely health checks and cash sales are still very modest. The accounting system of the cash receipts of the business activity is only using the document pickup. When viewed from the frequency of sales and service checks every day, the system that has been used is deemed to be less effective in terms of internal controls. This study aims to determine in real terms how the internal control system of cash receipts and evaluation of internal control systems at these pharmacies. This research uses qualitative method to analyze the data. The data obtained from three data collection methods are interview, observation and documentation. Keywords: system of internal control, cash receipts in cash, accounting system, system evaluation

scholarly journals EVALUATION OF THE IMPLEMENTATION OF INTERNAL CONTROL SYSTEM FOR THE RECEPTION, RETURN AND AUCTION OF GUARANTEE GOODS IN. PEGADAIAN (PERSERO)

2020 ◽  
Vol 1 (1) ◽  
pp. 56-68
Author(s):  
Ahmad Raymond Trilaksana
Keyword(s):  
Control System ◽  
Control Systems ◽  
Internal Control ◽  
Control Environment ◽  
Unit Manager ◽  
Lack Of Control ◽  
Internal Control System ◽  
Standard Operating ◽  
Information And Communication ◽  
Qualitative Descriptive

PT. Pegadaian (Persero) provides loans to people with require collateral item as insurance. PT. Pegadaian have to  keep  the  collateral  save and  maintain  it secure, so that  internal control  for  collateral  items  are  necessary  needed.  The purpose of  this research  was  to determine and evaluate the implementation of the internal control systems for receiving, returns, and auctions of collateral items at PT. Pegadaian (Persero). The method used  is  qualitative descriptive with  five  components  of  COSO to  evaluate the effectivities of internal control that applied at PT. Pegadaian (Persero). The five components of the COSO internal control is the control environment, risk assessment, control activities, information and communication and monitoring. The results showed that internal control systems at PT. Pegadaian (Persero) have been support by Standard Operating Procedures for all operations and filed documents. But from the evaluation for internal control system of receiving, returns, and auctions of collateral items there are still task stacking at unit manager make internal control systems PT. Pegadaian (persero) still have lack of control.

scholarly journals ANALISIS SISTEM PENGENDALIAN INTERNAL TERHADAP PEMBERIAN DAN PELUNASAN PIUTANG PADA KOPERASI PEGAWAI NEGERI (KPN) BAHTERA BITUNG

2018 ◽  
Vol 13 (04) ◽  
Author(s):  
Wendy Hillari Lahope ◽  
Treesje Runtu ◽  
Anneke Wangkar
Keyword(s):  
Risk Assessment ◽  
Control System ◽  
Internal Control ◽  
Internal Controls ◽  
Control Environment ◽  
Accounts Receivable ◽  
Internal Control System ◽  
Environment Control ◽  
Information And Communication ◽  
Descriptive Method

Internal controls should be supported by the presence of control components which include: control environment, control activities, risk assessment, information and communication, and monitoring. All of these will support the achievement of internal control objectives. The purpose of this study is to determine whether the internal control system on the provision and repayment of receivables at the Cooperative Employees (KPN) Bahtera Bitung is in accordance with the theory of COSO. The method used is descriptive method. Based on the results of research conducted by researchers, it can be concluded that the internal control system in the cooperative is still less effective, due to the absence of division of tasks or the granting of authority and responsibility, and bad debts are still common in the Employees Cooperative (KPN) Bahtera Bitung.Keywords : Internal Control System, Accounts Receivable

scholarly journals Effects of Risk Assessment, Control Environment and Control Activities on Performance of Listed Banks in Ghana

2020 ◽  
pp. 18-33
Author(s):  
Redruth Nyaaba Ayimpoya ◽  
David Amoah Akolgo ◽  
Simon Akumbo Eugene Mbilla ◽  
Michael Kwame Gbegble
Keyword(s):  
Risk Assessment ◽  
Financial Performance ◽  
Control Systems ◽  
Internal Control ◽  
Practical Implication ◽  
Internal Controls ◽  
Control Environment ◽  
Private And Public ◽  
Risk Areas ◽  
And Control

Globally, internal controls serve many important purposes for public private and public help organizations. There is however an increasing call for better and improved internal control systems especially in firms that are listed on public market. However, internal control systems, irrespective of how well conceived and implemented cannot provide absolute assurance of management and boards regarding the achievement of objectives. This research focused on the three components of internal control systems namely control environment, risk assessment, and control activities. This study therefore formulated four objectives and investigated how risk assessment, control activities, and control environment affects the performance of Ghanaian banks. In this quantitative study, representatives from twelve listed banks were engaged. Descriptive and regression analysis was performed on the field data. The study result shows while Risk assessment has a strong significant effect on financial performance, Control environment and Control activities, have a weak significant effect on financial performance. The practical implication of the study is that, when assessing the performance of banks, risk areas must be examined critically to reduce or eliminate their impacts on bank performance.

scholarly journals INTERNAL CONTROL PRACTICES OF MOSQUES IN JAVA, INDONESIA

2020 ◽  
Vol 17 (1) ◽  
Author(s):  
Nining Islamiyah ◽  
◽  
Siti Siraj ◽  
Ahmad Osman ◽  
◽  
...  
Keyword(s):  
Risk Assessment ◽  
Data Collection ◽  
Internal Control ◽  
Internal Controls ◽  
Control Environment ◽  
Information And Communication ◽  
Monitoring Activities

Internal controls are necessary tools to help organisations attain organisational goals. Lack of these controls could lead to fraudulent activities, which hamper the achievement of organisational goals. Thus, this study aims to investigate the internal control practices in the selected Indonesian mosques. Two mosques were chosen for the purpose of this study; Mosque A and Mosque B. The study employs Committee of Sponsoring Organization (COSO, 2013) framework of internal controls to frame the investigation of internal control practices in these two mosques. Data collection was undertaken through interviews and reviews of relevant documents. The findings reveal that the two selected mosques; Mosque A and B, have five mechanisms of internal control practices in place. These include control environment, risk assessment, control activities, information and communication, and monitoring activities. This study concludes that internal control practices are a necessary process to support the accountability of the mosque. The results of this study could be used as potential reference for the improvement of internal control practices in the Indonesian mosques.

scholarly journals A Study on Effectiveness of Internal Control System in Selected Banks in Saudi Arabia

2019 ◽  
Vol 8 (1) ◽  
pp. 41-47
Author(s):  
Raj Bahadur Sharma ◽  
Nabil Ahmed M. Senan
Keyword(s):  
Risk Assessment ◽  
Saudi Arabia ◽  
Control System ◽  
Internal Control ◽  
Communication System ◽  
Large Scale ◽  
Internal Controls ◽  
Control Environment ◽  
Significant Difference ◽  
Internal Control System

The study is to attempt to examine effectiveness of internal control system in selected Saudi Banks in Saudi Arabia. The effectiveness of internal control depends and interrelated to five components viz., Control Environment, Risk Assessment, Accounting Information System and Communication System, Control Activities, and Self-Monitoring. These components derived from management and integrated with the management process. Although the components are applicable to all banks, small and medium, sized banks can apply them separately on a large scale. Its control can be less formal and less structured, yet a small bank can control effective internal controls. The study concluded that the Banks in Saudi Arabia have satisfactory internal control system. The Al Rajhi bank has top most internal control system in selected banks. It recommended that there still need to improve in control environment, risk assessment and communication system in banks. The study statistically proved that there is significant difference in effectiveness of Internal Controls in the Selected Saudi Banks.

scholarly journals Internal Controls For Hospitality Revenue In The Gaming Industry

2011 ◽  
Vol 9 (8) ◽  
pp. 15 ◽  
Author(s):  
Tim Kizirian ◽  
Tim Heinze ◽  
John (Skip) Lees
Keyword(s):  
Control System ◽  
Control Systems ◽  
Internal Control ◽  
Internal Controls ◽  
Business Managers ◽  
Gaming Industry ◽  
Business Operations ◽  
Economic Climate ◽  
Internal Control System ◽  
Revenue Cycle

In todays difficult economic climate, business managers must carefully consider all aspects of business operations to minimize waste and increase efficiency. The revenue cycle continues to be the primary area of fraud and abuse requiring strong, comprehensive internal controls (AICPA 2002). Internal controls in the revenue arena are now more important than ever. The current paper provides a control review checklist for hospitality revenue in the gaming industry. Extant studies have often focused on internal controls for the gambling operations of the gaming industry to the neglect of the hospitality portion of the industry. For many firms in the industry, the hospitality revenue can account for half of total firm revenue. The checklist we provide can be used as a general benchmark to perform preliminary evaluations of a companys internal control system in the hospitality arena. Auditors can compare their clients control objectives with the objectives that are presented. During preliminary investigations of the companys internal control system, auditors should review whether important control objectives have been omitted and whether the omission incurs or heightens risk. The control review checklist can also be used by CFOs or controllers in the gaming industry in reviewing whether their companys internal control systems are adequate. The checklist provides CFOs or controllers internal controls that external, independent auditors consider to be important.

scholarly journals EVALUASI PENERAPAN SISTEM PENGENDALIAN INTERNAL ATAS PENERIMAAN, PENGEMBALIAN DAN PELELANGAN BARANG JAMINAN PADA PT. PEGADAIAN (PERSERO)

2017 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
Fifke Masyie Siwu ◽  
Agus T. Poputra
Keyword(s):  
Risk Assessment ◽  
Control System ◽  
Control Systems ◽  
Internal Control ◽  
Control Environment ◽  
Unit Manager ◽  
Internal Control System ◽  
Standard Operating ◽  
Information And Communication ◽  
Qualitative Descriptive

PT. Pegadaian (Persero) provides loans to people with require collateral item as insurance. PT. Pegadaian have to keep the collateral save and maintain it secure, so that internal control for collateral items are necessary needed. The purpose of this research was to determine and evaluate the implementation of the internal control systems for receiving, returns, and auctions of collateral items at PT. Pegadaian (Persero). The method used is qualitative descriptive with five components of COSO to evaluate the effectivities of internal control that applied at PT. Pegadaian (Persero). The five components of the COSO internal control is the control environment, risk assessment, control activities, information and communication and monitoring. The results showed that internal control systems at PT. Pegadaian (Persero) have been support by Standard Operating Procedures for all operations and filed documents. But from the evaluation for internal control system of receiving, returns, and auctions of collateral items there are still task stacking at unit manager make internal control systems PT. Pegadaian (persero) still have lack of control.Keywords: Internal Control Systems, Collateral Item, COSO.

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