scholarly journals Internal Control: Its Role in the Reduction of Fraud and Professional Misconduct among SMEs

2021 ◽  
pp. 57-66
Author(s):  
Okeke, Stella Ehis ◽  
Offor, Stephanie Ifunanya ◽  
Chukwunwike, Onyekachi David
Keyword(s):  
Control Systems ◽  
Survey Research ◽  
Research Design ◽  
Internal Control ◽  
Internal Controls ◽  
Small Scale ◽  
Professional Misconduct ◽  
Medium Scale ◽  
Improve Efficiency

The issue of fraud and professional misconduct is a challenge to many organizations. However, the small-scale and medium-scale enterprises (SMEs) are more vulnerable. This study evaluates the role of internal control in the reduction of fraud and professional misconduct among SMEs in the Enugu metropolis. This study adopted survey research design. The research made the following major findings: that internal controls are put in place by SMEs, that internal controls are adhered to in SMEs, and that the internal controls implemented are effective in curbing fraud and professional misconduct in SMEs. Hence, the research recommend that owners and managers of SMEs should evaluate existing internal control systems and continue to implement good internal controls and ensure that proper financial records are kept and statements are prepared periodically, and small-scale enterprises that do not have internal controls should establish such and implement them to curb fraud and professional misconduct and thereby improve efficiency of operations.

scholarly journals ANALYSIS OF THE FUCTIONAL ROLE OF RICE MILLING COMPANY ON THE WELFARE OF RICE FARMERS IN THE SUB-DISTRICT BUAY MADANG TIMUR DISTRICT OKU TIMUR

Jurnal AKTUAL ◽  
2019 ◽  
Vol 16 (1) ◽  
pp. 47
Author(s):  
Aisah Aisah
Keyword(s):  
Large Scale ◽  
Raw Materials ◽  
Small Scale ◽  
Functional Roles ◽  
Medium Scale ◽  
Rice Farmers ◽  
Result Show ◽  
Rice Milling ◽  
Processing And Storage

Rice Milling Company is rice industry’s oldest and largest classified in Indonesia, which is able to absorb more than 10 million workers, handles more than 40 million tons of grain.  Rice Milling Company agro-industy is the central point, because this is where the main product is obtained in the form of rice and raw materials for advanced processing of food and industrial products.  Rice Miling Unit in the district of OKU Timur there is some skala, ranging form small-scale, medium-scale to large-scale.  Fuctional benefits of each different scale milling is also different.  The average rice farmers often sell gabahnya to the rice milling unit closest to the place residence, whether it is large-scale, medium and small.  Rice produced by the milling-grinding different quality.  Usually when a large-scale millimg yield of rice is cleaner than the other scale.  But it does not become a reference for milling grain milling usually depends on consumer demand.  The purpose of the study are : 1.  To determine levels of volume (tonnage) and the retention time of each service fuctional rice storage (barns) wich carried a different scale rice milling unit.  2.  To determine differences in the bebefits of economic transactions received by farmers and rice millers of different scale of business, especially when seen from the level of the milling costs, the purchase price of rice by rice milling unit, and the quality of milling services and service scale.  The result show that : the fuctional role of each is different milling.  Large-scale milling has three fuctional roles are : Processing, storage and distribution.  Medium-scale miling functional has two roles, namely : processing and distribution.  While small-scale rice milling unit has only two functional roles are : processing and storage.

scholarly journals KAJIAN PERAN RISET DAN PENGEMBANGAN DALAM MENDUKUNG INDUSTRI KAKAO NASIONAL = STUDY ON THE ROLE OF RESEARCH AND DEVELOPMENT IN SUPPORTING INDONESIAN COCOA INDUSTRY

2016 ◽  
Vol 10 (1) ◽  
pp. 19-26
Author(s):  
Lamhot P. Manalu
Keyword(s):  
Research And Development ◽  
Foreign Exchange ◽  
Oil Palm ◽  
Small Scale ◽  
Processing Industry ◽  
Average Growth ◽  
Medium Scale ◽  
Intermediate Products ◽  
Quality Policy

Cocoa is commodities third largest foreign exchange earner after oil palm and rubber. In 2012 production totaled 833 310 tonnes of cocoa with an average growth of 1.56%. There are two major challenges in the development of the national cocoa industry, the increase in quantity (production and productivity) and quality. To support these efforts the role of research and development is needed to ensure that the procedures adopted are appropriate and fit. This study aims to study the role of research and development and other supporting factors in addressing the problems of the national cocoa. The study is in the form of survey respondents which are R&D institutes, universities and cocoa processing industry. The results show that there is a problem of national cocoa industry in all aspects, here the cultivation aspect is the biggest problem. The next aspects are mentoring, institutional, business scale, quality, policy, processing of intermediate products and processing of downstream products. The study also shows that there is still a lot of research results that can not be utilized by the cocoa industry, the rest has to be applied even if but only for a small scale so that the less significant. In the small and medium scale of cocoa enterprises, the equipment used is generally low capacity so inefficient. ABSTRAKKakao merupakan komoditas perkebunan penghasil devisa terbesar ketiga setelah kelapa sawit dan karet. Pada tahun 2012 produksi kakao tercatat sebesar 833.310 ton dengan rata-rata pertumbuhan sebesar 1,56%. Ada dua tantangan utama dalam pengembangan industri kakao nasional yaitu peningkatan kuantitas (produksi dan produktifitas) dan kualitas. Untuk mendukung usaha tersebut peran riset dan pengembangan (risetbang) sangat dibutuhkan untuk memastikan prosedur yang diterapkan sudah tepat dan sesuai.Studi ini bertujuan untuk mempelajari peran risetbang serta faktor pendukung lainnya dalam menjawab permasalahan kakao nasional. Studi ini berupa hasil survey terhadap responden (pelaku risetbang kakao) yaitu lembaga penelitian dan pengembangan, universitas serta industri pengolahan kakao. Hasil kajian menunjukkan bahwa permasalahan industri kakao nasional terdapat pada semua aspek, dimana aspek budidaya merupakan permasalahan terbesar. Aspek berikutnya adalah penyuluhan, kelembagaan, skala usaha, mutu, kebijakan, pengolahan produk antara dan pengolahan produk hilir. Studi juga menunjukkan bahwa masih banyak hasil riset yang tidak dapat dimanfaatkan oleh industri kakao skala besar, sisanya walaupun telah bersifat aplikatif tetapi hanya untuk skala kecil sehingga kurang signifikan. Pada industri usaha skala kecil dan menengah umumnya peralatan yang digunakan berkapasitas rendah sehingga tidak efisien.

scholarly journals PERANAN AUDIT INTERNAL DALAM MENUNJANG EFEKTIVITAS PENGENDALIAN INTERNAL ATAS BIAYA PRODUKSI AIR MINUM DALAM KEMASAN 240ML PADA PT. AQUA GOLDEN MISSISSIPPI TBK.

2016 ◽  
Vol 2 (1) ◽  
pp. 46-65
Author(s):  
Arief Tri Hardiyanto
Keyword(s):  
Internal Control ◽  
Production Cost ◽  
Rank Correlation ◽  
Internal Audit ◽  
Internal Controls ◽  
Bottled Water ◽  
Production Costs ◽  
Control Cost ◽  
Strongly Agree

This study shows how the role of internal audit is adequate can play a role in supporting the effectiveness of internal controls over the production cost of bottled water 240ml at PT. Aqua Golden Mississippi Tbk. (Branch Mekarsari). The method used in this research is descriptive statistic by using Spearman Rank correlation coefficient with n = 15 and a significant level of 0.05. Based on the research that has been described, it can be concluded that the respondents in the role of internal audit is adequately provide answers strongly agree and agree amounting to 96.1% of respondents regarding the effectiveness of internal control over production costs by 97.02% answered strongly agree and agree, The role of internal audit in supporting the effectiveness of internal controls over the production cost of bottled water 240ml including a very strong, which is 89.96%. While the remaining 10.04% influenced by other factors not included in the research conducted by the author. Thus it can be said that adequate internal audit was instrumental in supporting the effectiveness of internal controls over the production cost of bottled water 240ml at PT. Aqua Golden Mississippi Tbk. (Branch Mekarsari).Keywords: Internal Audit, Internal Control, Cost of Production

Is it suitable for your local governments?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nanang Shonhadji ◽  
Ach Maulidi
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Control System ◽  
Public Sector ◽  
Local Government ◽  
Control Systems ◽  
Internal Control ◽  
Internal Controls ◽  
Content Type ◽  
Fraud Mitigation

Purpose The purpose of this study is to extend existing theory by developing a contingency theory for the public sector and to provide a landscape for local government to deal with white-collar crime. In recent years, the theme of risk management and internal controls, which is popular in the industry and private sector, has been mirrored by public sector organisations. Of course, it is to improve fraud risk control systems. We have to accept that public sector organisations have a growing need to control the (fraud) risks in a rapidly changing economic environment. Within this situation an effective internal control is becoming strategically important in many organisations, as it is proving to be a cost-efficient way to manage these risks in everyday operations. Here, the authors conducted a case study on the risk management control system at an Indonesian local government. Design/methodology/approach This study uses mixed methods, integrating quantitative and qualitative data – in-depth interviews and questionnaires were required to address the social phenomenon being investigated. Findings This study found that the structure of the control system fits a generic model, in which control systems are fundamental factors to all departments. It shows that control systems can support managers to align employee capabilities, activities and performance with the organisation’s goals and missions. In addition, the authors could identify, risk assessment and monitoring activities are effective measures of controlling organisation’s activities, and potentially could diagnose potential (fraud) risks, deterring to the achievement of organisational aims. Ideally, those aspects should be performed on a continuous basis if organisations want to prevent the spread of numerous potential menaces. In other words, if an organisation fails to carry out risk assessment correctly, it will result in unidentified possibility of fraud risks. The more explicit the risk assessment, the more effective the detection of fraud. Practical implications It can be alternative to consider Committee of Sponsoring Organizations of the Treadway Commission’s internal control as fraud mitigation in local government. Originality/value This study offers new directive discussion about internal controls as notion of fraud mitigation.

Integrating AIS and Accounting for Income Taxes: From Calculation to Disclosure

2010 ◽  
Vol 25 (3) ◽  
pp. 583-597 ◽  
Author(s):  
Tina M. Loraas ◽  
Kimberly Galligan Key
Keyword(s):  
Control Problem ◽  
Internal Control ◽  
Word Processing ◽  
Internal Controls ◽  
Income Taxes ◽  
Online Retailer ◽  
Organic Foods ◽  
And Control ◽  
Accounting For Income Taxes

ABSTRACT: TK Foods, Inc. is a leading online retailer of whole and organic foods, and while this company is doing well, management is struggling with accounting for income taxes. The case requires you to take the role of a consultant who has been hired to calculate the provision of income taxes and to create a template for the footnote disclosure using spreadsheet and word processing tools. Further, TK requires documentation regarding both the process and internal controls surrounding this calculation. This case will further your understanding of accounting for income taxes, expose you to a significant internal control problem faced by many corporations, and develop your spreadsheet skills from both computational and control standpoints.

scholarly journals La auditoría y el control como base para minimizar los riesgos en ambiente empresarial moderno

2016 ◽  
Vol 3 (3) ◽  
pp. 106-112
Author(s):  
Sidia Vera Gutiérrez ◽  
Teresa Avilés Flor ◽  
Erika Quiñónez Alvarado
Keyword(s):  
Internal Control ◽  
Code Of Ethics ◽  
Control Process ◽  
Internal Controls ◽  
International Standards ◽  
Virtual Communication ◽  
New Horizons ◽  
Training Institutions ◽  
And Training

Este estudio tiene como objetivo determinar el rol fundamental que tienen las Universidades como entidades de formación, en la difusión y fijación de conceptos, criterios modernos y herramientas de un adecuado control interno integrado, también establecer los riesgos que enfrentan las entidades en el entorno moderno, con el fin de que el auditor logre una buena gestión y adecuada rendición de cuentas a la sociedad. Se discernió sobre los cambios de tendencias en la información y comunicación virtual, para evaluarlas y prever sus efectos, se concluyó que los auditores modernos ante la globalización y la velocidad de la información y comunicación virtual, requieren nuevas y diferentes técnicas, así como habilidades de evaluación de los controles internos pero principalmente un cambio en las conceptualizaciones del proceso de control y una actitud crítica para lograr mayor eficiencia en sus organizaciones, que garantice el cumplimiento de las Normas Internacionales de Auditoría y Código de Ética. Un Auditor tradicional de evaluación de control interno, enfrenta un gran desafío, realizar un trabajo más complejo y de mayor alcance a través de la evaluación de los modelos que se propondrán, a fin de determinar adecuadas estrategias para definir nuevos horizontes que maximicen oportunidades y minimicen riesgos.Abstract This study aims to determine the fundamental role of universities and training institutions in the diffusion and fixing concepts, modern criteria and tools of an adequate integrated internal control also establish the risks faced by entities in the modern environment, in order the auditor to achieve good management and proper accountability to society. He discerned on the changing trends in information and virtual communication, to assess and predict its effects, it was concluded that modern auditors to globalization and the speed of information and virtual communication, require new and different techniques and skills evaluation of internal controls but mainly a change in the conceptualizations of the control process and a critical attitude to achieve greater efficiency in their organizations, to ensure compliance with the International Standards on Auditing and Code of Ethics. A traditional Auditor evaluation of internal control, facing a great challenge, a more complex and far-reaching work through the evaluation of the models proposed, in order to determine appropriate strategies to define new horizons that maximize opportunities and minimize risks  

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

The stewardship organization: essential characteristics and conditions of feasibility

2020 ◽  
Vol 35 (3/4) ◽  
pp. 175-190
Author(s):  
Mark Lehrer ◽  
Lydia Segal
Keyword(s):  
Control Systems ◽  
Internal Control ◽  
Design Methodology ◽  
Content Type ◽  
Agent Behavior ◽  
Bona Fide ◽  
Facilitating Conditions ◽  
Stewardship Behavior ◽  
Practical Implications

PurposeThe paper explores the nature and facilitating conditions of “stewardship organizations,” that is, organizations in which stewardship behavior rather than principal–agent behavior defines the operative principles of management.Design/methodology/approachThe paper falls into two parts: the first part of the analysis develops a theory of the stewardship organization, and the second part develops a contingency framework concerning the feasibility of stewardship organizations.FindingsStewardship organizations are characterized by three interlocking traits: (1) the overall mission of the organization, (2) the organization's internal control systems and (3) the “motivational environment” of the stewardship organization. Since stewardship organizations cannot be identified on the basis of stated mission alone, it is necessary to determine whether the mission involves a higher calling that has been internalized by organizational members to the point of constituting a vital part of how the organization runs on a day-to-day basis.Practical implicationsOne key role of leadership in such organizations is to manage mission drift and to reduce the ambiguity of the mission and organization goals.Social implicationsLitmus tests are proposed for identifying an authentic stewardship organization in contradistinction to those whose socially minded values are ancillary or a marketing ploy.Originality/valueThis is the first systematic attempt to characterize the stewardship organization. After providing three specific examples of such organizations, the contribution identifies key markers of bona fide stewardship organizations.

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