Journal articles on the topic 'Internal risk controls'
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Pathak, Jagdish. "Risk management, internal controls and organizational vulnerabilities." Managerial Auditing Journal 20, no. 6 (August 2005): 569–77. http://dx.doi.org/10.1108/02686900510606065.
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Chen, Hanwen, Daoguang Yang, Joseph H. Zhang, and Haiyan Zhou. "Internal controls, risk management, and cash holdings." Journal of Corporate Finance 64 (October 2020): 101695. http://dx.doi.org/10.1016/j.jcorpfin.2020.101695.
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Donelson, Dain C., Matthew S. Ege, and John M. McInnis. "Internal Control Weaknesses and Financial Reporting Fraud." AUDITING: A Journal of Practice & Theory 36, no. 3 (September 1, 2016): 45–69. http://dx.doi.org/10.2308/ajpt-51608.
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SUMMARY This study examines whether and how weak internal controls increase the risk of financial reporting fraud by top managers. There is a longstanding debate on whether control strength significantly affects fraud risk, yet little evidence on this issue. Further, there is no evidence on the mechanism linking control strength to fraud risk. We find a strong association between material weaknesses and future fraud revelation. We theorize that this link could be attributable to weak controls (1) giving managers greater opportunity to commit fraud, or (2) signaling a management characteristic that does not emphasize reporting quality and integrity. We find support for the opportunity explanation, but not through specific accounts linked to control weaknesses. Instead, consistent with the PCAOB's assertion, weaknesses in entity-wide controls, not process-level controls, are associated with a higher risk of reporting fraud. JEL Classifications: M41.
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Atmanegara, Agung Wahyudhi, Erlina ., Iskandar Muda, and Abdhy Aulia Adnans. "Can the Risk Management Implementation Intensify the Internal Auditor Expertise Finding Risk in Local Government?" Webology 18, SI05 (October 30, 2021): 646–53. http://dx.doi.org/10.14704/web/v18si05/web18252.
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Many cases of fraud in the form of corruption and bribery are findings of external examinations. It shows internal supervision is not sufficient. The internal supervision of companies and local governments have not been able to detect fraud. In this study, we suspect the internal auditors' workload, which makes their ability to detect fraud poor. If the company or local government has implemented risk management, the workload will not be as heavy as if it has not implemented risk management. The company and local government can apply a Risk-based internal audit if they have implemented risk management. Based on this explanation, conclude that finding auditor expertise of the fraud is influenced by workload, the implementation of risk management, and risk-based internal controls. The population of this research is the internal auditors of the provincial government of North Sumatra. This study uses primary data obtained from distributing questionnaires to the research sample. Data were analyzed using multiple regression analysis with the help of PLS applications. The findings showed that risk management application and risk-based supervision audit has a significant effect on detecting fraud and the workload is not affect to the ability to detect of fraud finding. The interviews with several informants concluded that if they have implemented risk management and risk-based internal audits, the internal auditors will not have a high workload. Because since the beginning, it has been identified which activities have an increased risk.
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Hermanson, Dana R., Jason L. Smith, and Nathaniel M. Stephens. "How Effective are Organizations' Internal Controls? Insights into Specific Internal Control Elements." Current Issues in Auditing 6, no. 1 (February 1, 2012): A31—A50. http://dx.doi.org/10.2308/ciia-50146.
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SUMMARY Based on survey responses from approximately 500 Chief Audit Executives (CAEs) and other internal auditors, this article provides an insider's view of the perceived strength of organizations' internal controls (i.e., internal control over financial reporting) in the Control Environment, Risk Assessment, and Monitoring components of the Committee of Sponsoring Organizations' (COSO 1992a) Internal Control—Integrated Framework. Although the respondents largely rate control strength as relatively high, we identify several areas for potential improvement of internal controls, especially related to assessing the “tone at the top,” as well as following up on deviations from policy and management override of controls. In analyzing individual control elements, we find that public companies' controls are consistently rated as more effective than those of other organizations. We also find a number of interesting differences across key industries, especially in the Monitoring component, where banks and other financial services firms appear to have more robust Monitoring controls than do healthcare and other services firms. The component-level analysis reveals that internal control component strength is positively related to the CAE reporting primarily to the audit committee, public company status, and the average tenure of the internal audit function staff, among other findings. Based on the survey findings, we describe key implications relevant to internal and external auditors, accounting researchers and educators, and management.
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Morrill, Janet B., Cameron K. J. Morrill, and Lori S. Kopp. "Internal Control Assessment and Interference Effects." Behavioral Research in Accounting 24, no. 1 (December 1, 2011): 73–90. http://dx.doi.org/10.2308/bria-10074.
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ABSTRACT Both U.S. Generally Accepted Auditing Standards and International Standards on Auditing require risk-based audits, where audit effort is concentrated on accounts and financial statement assertions where the risk of material misstatement is high. Assessing risk requires the auditor to evaluate the auditee's internal control systems; however, current standards and practice vary regarding the point at which risks are to be identified. Using output interference theory, we hypothesize that risk assessment performed by the auditor before evaluating the client's internal control systems will lead to a more complete identification of sources of internal control deficiencies as compared to assessing risk after evaluating internal control systems. In our experiment, auditors who identified risks first identified more, and more important, internal control deficiencies than did auditors identifying controls first, although the number of risks identified was not significantly different between the two groups. Overall, our results suggest that audit efficiency and effectiveness depend on the sequence in which internal control evaluation subtasks are performed. Data Availability: Data are available from the authors upon request.
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Akwaa-Sekyi, Ellis Kofi, and Jordi Gené Moreno. "Internal controls and credit risk relationship among banks in Europe." Intangible Capital 13, no. 1 (January 19, 2017): 25. http://dx.doi.org/10.3926/ic.911.
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Purpose: The study purport to investigate the effectiveness of internal control mechanisms, investigate whether evidence of agency problem is found among banks in Europe and determine how internal controls affect credit risk.Design/methodology/approach: Panel data from 91 banks from 23 European Union countries were studied from 2008-2014. Hausman’s specification test suggest the use of fixed effects estimation technique of GLS. Quantitatively modelled data on 15 variables covering elements of internal controls, objectives of internal controls, agency problem, bank and country specific variables were used.Findings: There is still high credit risk in spite of measures being implemented by the European Central Bank. Banks have individual entity factors that increase or decrease credit risk. The study finds effective internal control systems because objectives of internal controls are achieved and significantly determine credit risk. Agency problem is confirmed due to significant positive relation with credit risk. There is significant effect of internal controls on credit risk with specific variables as risk assessment, return on average risk weighted assets, institutional ownership, bank size, inflation, interest rate and GDP.Research limitations/implications: Missing data prevented the use of strongly balanced panel. The lack of flexibility with using quantitative approach did not allow further scrutiny of the nature of variables. However, statistical tests were acceptable for the model used. The study has implications for management and owners of banks to be warry of agency problem because that provides incentive for reckless high risk transactions that may benefit the agent than the principal. Management must engage in actions that profile the company better and enhances value maximization. Rising default risk has tendency to impair corporate image leading to loss of reputational capital.Originality/value: The study provides the use of quantitative approach to measuring certain phenomena within the discipline of internal controls. The study adds to a previous study by same authors and confirming the agency problem in a different approach.
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Jin, Justin Yiqiang, Kiridaran Kanagaretnam, Gerald J. Lobo, and Robert Mathieu. "Impact of FDICIA internal controls on bank risk taking." Journal of Banking & Finance 37, no. 2 (February 2013): 614–24. http://dx.doi.org/10.1016/j.jbankfin.2012.09.013.
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Rahman, Md Jahidur, and Rob Kim Marjerison. "Sustaining competitive advantage through good governance and fiscal controls: Risk determinants in internal controls." Corporate Ownership and Control 18, no. 1 (2020): 34–46. http://dx.doi.org/10.22495/cocv18i1art3.
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This study conducts a comprehensive review of the literature published during 1989-2020 to identify the factors that can cause internal control weakness. This review is organized around five main groups, namely: 1) rapid growth and restructuring, 2) financial reporting complexity, 3) auditor tenure, 4) cultural differences, and 5) corporate governance. We perform an integrated literature review approach. Among the several factors found, some factors (the proportion of managerial ownership, Individualism, power distance, financial reporting complexity, rapid growth, and auditor-customer geographic distance) have a positive relationship with internal control weakness while others (the quality of the board of directors and auditing committees, directors’ compensation, and uncertainty avoidance) have a negative relationship. The findings contribute to future research by examining the factors that can cause internal control weakness from different perspectives, which will prove to be useful for investors, auditors, audit committee members, managers, and other stakeholders regarding the prevention of internal controls weaknesses through the application of solid internal controls as well as a path towards the improvement of existing problems of internal control weakness.
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Savina, Natalia, and Yuri Pipia. "Risk-oriented external and domestic public financial controls: general and private in approaches to implementation." Buhuchet v zdravoohranenii (Accounting in Healthcare), no. 5 (May 1, 2021): 25–35. http://dx.doi.org/10.33920/med-17-2105-03.
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In this paper, the authors analyze the existing set of guidelines for applying a risk-oriented approach to the planning of control bodies for internal and external public financial control; an important part of the study is the authors’ thesis on the search for ways to unify the experience of risk-oriented planning in the activities of internal and external government financial controls. To find an answer to this question, the authors conduct a comprehensive study of the application of a risk-oriented approach to the planning of internal and external government financial controls in the context of the list of criteria, which include the order and methods of determining risks, their understanding, as well as the very concept of “risk-oriented approach”.
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Lobo, Gerald, Chong Wang, Xiaoou Yu, and Yuping Zhao. "Material Weakness in Internal Controls and Stock Price Crash Risk." Journal of Accounting, Auditing & Finance 35, no. 1 (April 12, 2017): 106–38. http://dx.doi.org/10.1177/0148558x17696761.
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We investigate the association between material weakness in internal controls (MW) disclosed under Section 302 of the Sarbanes–Oxley Act of 2002 (SOX) and future stock price crash risk. We argue that relative to firms with effective internal controls, firms with MW have lower financial reporting precision. The lower reporting precision (a) increases divergence of investor opinion with regard to firm valuation and (b) facilitates managers’ withholding of negative information, which increases the information asymmetry between managers and outside investors. We hypothesize that both these effects increase the probability of a future stock price crash. We find empirical evidence consistent with our prediction. In additional analyses, we document that the positive association between MW and crash risk is primarily driven by company level rather than by account-specific weaknesses, increases with the number of material weaknesses, and intensifies during the financial crisis. In addition, we find that both the existence and the disclosure of MW incrementally affect crash risk, and that MW facilitates managers’ withholding of bad news. Finally, we fail to find consistent evidence of a significant relation between MW disclosed under Section 404 of SOX and crash risk.
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Kirovа, E. A., and T. V. Perminova. "Analysis and assessment of the organisation’s internal control risks." Vestnik Universiteta, no. 3 (May 2, 2022): 116–23. http://dx.doi.org/10.26425/1816-4277-2022-3-116-123.
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Risk management is an important part of an organisation’s internal controls and needs to be adjusted in response to changes in the external environment. In this article the problem of risk prevention and loss reduction in the organisation’s internal control system has been solved in the current environment. The existing risks were analysed and described, classification of external and internal risks was developed and methodology of risk tolerance and possibility of diversification was proposed. It was proved that the proposed risk matrix gives a clear picture of risky operations and helps organisations to implement response measures, optimising the risks. The proposed methodology is tested in a specific organisation. The study uses the methods of systematic approach, analysis and synthesis, abstraction and generalisation.
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Ho, Virginia Harper. "Corporate Governance as Risk Regulation in China: A Comparative View of Risk Oversight, Risk Management, and Accountability." European Journal of Risk Regulation 3, no. 4 (December 2012): 463–75. http://dx.doi.org/10.1017/s1867299x00002403.
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Risk management and oversight have long been recognized as core corporate governance issues and have gained renewed attention in the wake of the financial crisis. Recent corporate governance reforms in China follow these global trends. This article is the first to examine the intersections between corporate governance and risk regulation in China from a comparative perspective. It surveys corporate governance tools that have been adopted by Chinese regulators and firms to motivate effective risk oversight and risk management across the corporate enterprise, focusing on China's regulation of internal controls and risk management systems. These internal mechanisms are particularly important given the widely recognized limits of external monitoring and enforcement mechanisms in China.This article observes that recent guidelines on enterprise risk management (ERM) and internal controls reflect international corporate governance standards and that China adopts a broad perspective on risk oversight that extends to both financial and non-financial risks. China's adoption of international models offers a new opportunity to reexamine longstanding debates on the potential for global corporate governance convergence. This article argues that China has adopted a regulatory approach to internal risk oversight and management that is consistent with its historical law reform trajectory, the reality of China's state-dominated equity markets, and the continued influence of the state on firm management. Its conclusions support the literature on the path dependency of corporate governance systems and prior comparative studies of corporate governance in China that find convergence of form but divergence of function.
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Aksoy, Tamer, and Abdullai Mohammed. "Assessing bank’s internal control effectiveness." International Journal of Research in Business and Social Science (2147- 4478) 9, no. 4 (July 4, 2020): 196–206. http://dx.doi.org/10.20525/ijrbs.v9i4.743.
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This paper aims to evaluate the effectiveness of Ghanaian listed banks using COSO’s IC framework. Only Control environment, Risk assessment, and Monitoring activities components of the framework considered for this study. Methodologically, out of the 60 questionnaires, surveys distributed to the banks 37 copies received representing a 61.7% response rate. Statistic Package for Social Sciences (SPSS) v25 used to analyze data by running among other reliability tests, tests of normality, and descriptive statistics. The results of means and standard deviations gained ascertained that; strong controls existed in the control environment, risk assessment, and monitoring activities of internal control of the Ghanaian listed banks. A risk assessment had a low average mean compared to the control environment and monitoring activities. Because banks operate under higher risk than any other financial institution, we propose that Ghanaian listed banks should increase investment in risk assessment.
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Amorim, José M., Daniela Pereira, Marta G. Rodrigues, José Beato-Coelho, Margarida Lopes, André Cunha, Sofia Figueiredo, et al. "Anatomical characteristics of the styloid process in internal carotid artery dissection: Case–control study." International Journal of Stroke 13, no. 4 (September 14, 2017): 400–405. http://dx.doi.org/10.1177/1747493017730779.
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Introduction Pathophysiology of cervical artery dissection is complex and poorly understood. In addition to well-known causative and predisposing factors, including major trauma and monogenic connective tissue disorders, morphological characteristics of the styloid process have been recently recognized as a possible risk factor for cervical internal carotid artery dissection. Aims To study the association of the anatomical characteristics of styloid process with internal carotid artery dissection. Methods Retrospective, multicenter, case–control study of patients with internal carotid artery dissection and age- and sex-matched controls. Consecutive patients with internal carotid artery dissection and controls with ischemic stroke or transient ischemic attack of any etiology excluding internal carotid artery dissection, who had performed computed tomography angiography, diagnosed between January 2010 and September 2016. Two independent observers measured styloid process length and styloid process distance to internal carotid artery. Results Sixty-two patients with internal carotid artery dissection and 70 controls were included. Interobserver agreement was good for styloid process length and styloid process–internal carotid artery distance (interclass correlation coefficient = 0.89 and 0.76, respectively). Styloid process ipsilateral to dissection was longer than left and right styloid process in controls (35.8 ± 14.4 mm versus 30.4 ± 8.9 mm and 30.3 ± 8.2 mm, p = 0.011 and p = 0.008, respectively). Styloid process–internal carotid artery distance ipsilateral to dissection was shorter than left and right distance in controls (6.3 ± 1.9 mm versus 7.2 ± 2.1 mm and 7.0 ± 2.3 mm, p = 0.003 and p = 0.026, respectively). Internal carotid artery dissection was associated with styloid process length (odds ratio = 1.04 mm−1, 95% confidence interval = 1.01–1.08, p = 0.015) and styloid process–internal carotid artery distance (OR = 0.77 mm−1, 95% confidence interval = 0.64–0.92, p = 0.004). Conclusion Longer styloid process and shorter distance between styloid process and cervical internal carotid artery are associated with cervical internal carotid artery dissection.
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Cereola, Sandra J., and Ronald J. Cereola. "Breach of Data at TJX: An Instructional Case Used to Study COSO and COBIT, with a Focus on Computer Controls, Data Security, and Privacy Legislation." Issues in Accounting Education 26, no. 3 (August 1, 2011): 521–45. http://dx.doi.org/10.2308/iace-50031.
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ABSTRACT Internal control frameworks (ICF) provide a basis for understanding controls in an organization and for making judgments about the effectiveness of controls. The Sarbanes-Oxley Act of 2002 (SOX) requires companies to report, on an ongoing basis, the effectiveness of their internal controls in their annual filings. The Securities and Exchange Commission (SEC) recommends companies use ICF to help achieve compliance with SOX. ICF provide a useful tool for management and auditors evaluating and addressing the adequacy of controls in their organization. As there is no such thing as a “risk-free” enterprise, developing an understanding of ICF is important for students entering the accounting profession. This instructional case provides students the opportunity to assess internal control risks within an organization's information system using a “real-world” problem following COSO (SEC-recommended ICF) and/or COBIT as a guide. Students then evaluate the organization's overall level of internal control risks and formulate recommendations for mitigating such risks.
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Rubino, Michele, Filippo Vitolla, and Antonello Garzoni. "How IT controls improve the control environment." Management Research Review 40, no. 2 (February 20, 2017): 218–34. http://dx.doi.org/10.1108/mrr-04-2016-0093.
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Purpose The purpose of this paper is to analyze how Information technology (IT) controls influence the control environment’s components and the internal control system. Design/methodology/approach This paper aims to highlight how IT controls enable to improve the control environment assessment and implementation. Findings The analysis indicates that the implementation of the IT controls (IT organizational controls, IT process controls and IT soft variables controls) provides some indications for managers and auditors, who must implement or assess internal control system. A joint use of the three dimensions of IT control contributes to a better assessment of the individual components of the control environment. IT controls help managers to develop the design of the organizational structure and to identify the key processes to achieve the internal control objectives and to mitigate firm’s risk. Practical implications The examination of three IT control dimensions allows managers to expand their knowledge about these types of controls and change the way they approach technology-based processes and associated risks. This improves the understanding of the key aspects connected to the control environment. The paper provides a list of the relevant activities that affect the three types of IT controls. This is useful for managers to begin to frame the specific controls inside the three dimensions of IT control. Originality/value This paper addresses an area of relevance to both practitioners and academics. This analysis focuses on accounting information systems themes and, through the examination of the IT controls, allows a better understanding of the hard and soft elements of the control environment.
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Cerrone, Rosaria. "Banks’ internal controls and risk management: Value-added functions in Italian credit cooperative banks." Risk Governance and Control: Financial Markets and Institutions 3, no. 4 (2013): 16–27. http://dx.doi.org/10.22495/rgcv3i4art2.
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A critical component of safe and sound bank management is constituted by an effective and efficient system of internal controls, which help to ensure that the goals and objectives of a bank will be met, that long-term profitability targets will be achieved, and maintain reliable financial and managerial reporting. Such a system can also ensure that the bank will comply with laws and regulations as well as policies, plans, internal rules and procedures, and decrease the risk of unexpected losses or damage to the bank’s reputation. The paper describes the essential elements of a sound internal control system and through a qualitative approach, it shows how is tied to the rules attaining capital requirements and, above all, to the purpose of the Internal Capital Adequacy Assessment Process (ICAAP) which aims at determining the adequate capitalisation of a bank given the risks endured as well as future risks arising from growth, and new business lines. After the recent financial crisis ICAAP is becoming more and more relevant and a central component of an effective strategy for managing risk and creating value. All principles and considerations are referred to Italian Credit Cooperative Banks particular both for dimension and for governance and risk management. They have been contacted though local federations and the results confirm the existing of weakness in internal controls.
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Franz, Diana. "A perfect storm: how high levels of risk and weak internal controls resulted in violations of the foreign corrupt practices act." CASE Journal 17, no. 3 (July 9, 2021): 419–37. http://dx.doi.org/10.1108/tcj-04-2020-0045.
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Theoretical basis This case is based on Weatherford International’s settlement with the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). Both the SEC and the DOJ were critical of Weatherford for its violations of the Foreign Corrupt Practices Act and for its “inadequate internal controls.” This case explores the Foreign Corrupt Practices Act (FCPA) violations and issues related to internal controls. Research methodology Case study. Case overview/synopsis This case is based on Weatherford International’s settlement with the SEC and the Department of Justice. Weatherford provided equipment and services in the oil and gas industry. Because international markets were growing faster than domestic markets, Weatherford made a strategic decision to pursue growth in international markets. The oil and gas industry has high levels of operating risk as did the countries that Weatherford decided to pursue operations in. However, despite the decision to take on additional risk, Weatherford failed to implement adequate systems of internal controls. The title of the case “A Perfect Storm” refers to Weatherford’s trifecta of operating in an industry with high levels of corruption risk, countries with high levels of corruption risk and failing to implement adequate internal controls despite those high operating risks (Department of Justice, 2013). Weatherford was ultimately assessed a $152m penalty for its violations of the FCPA that included bribery, volume discounts, improper payments and kickbacks. Complexity academic level Undergraduate and graduate auditing classes.
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Chen, Ching-Lung, and Chung-Yu Chen. "Do Weak Internal Controls Affect Institutional Ownership Decisions?" Review of Pacific Basin Financial Markets and Policies 21, no. 03 (September 2018): 1850019. http://dx.doi.org/10.1142/s0219091518500194.
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Weak internal controls should increase risk perception among various contracting parties, e.g., institutional investors. This study examines whether the penalty firms pay for weak internal controls is associated with ownership decisions made by institutional investors in Taiwan and whether such decisions differ from those made by qualified foreign institutional investors (denoted as QFIIs) and local institutional investors. Empirical results indicate that weak internal controls are negatively associated with changes to institutional investor ownership, particularly for QFIIs. Further evidence shows that this negative association is more pronounced for firms with high divergence of control and cash-flow rights. This suggests that, faced with weak internal controls, institutions passively vote with their feet rather than actively monitor their portfolio firms. We demonstrate several diagnostic tests and show that the results are robust in various specifications.
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Stanišić, Mile. "Responsibility of internal auditors in the management of fraud risks." Revizor 24, no. 93 (2021): 79–94. http://dx.doi.org/10.5937/rev2193079s.
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When fraud occurs in the organization, many wonder - where was the internal audit. The aim of this work is to determine what are the responsibilities of internal audit in the management of fraud risks and what regulations define them. Internal Auditing Standards and the Code of Ethics for Internal Auditors are places where the responsibility of internal auditors for managing fraud risks is established, and the Internal Audit Charter is a document that authorizes internal auditors. The internal audit function plays an important role in the overall monitoring of fraud risk management programs. This is primarily evident from the independent assurance that the internal audit function provides to the Board and management that existing fraud risk management controls are adequately planned and efective.
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Chen, Hanwen, Ting Li, and Chuancai Zhang. "Going Too Far Is as Bad as Not Going Far Enough: An Inverted U-Shaped Relationship between Internal Controls and Operational Efficiency." Journal of International Accounting Research 20, no. 2 (June 1, 2021): 25–50. http://dx.doi.org/10.2308/jiar-17-571.
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ABSTRACT In this study, we explore the inverted U-shaped association between internal control quality and firm operational efficiency. Although effective internal controls can facilitate and improve operational efficiency, excessive internal controls can negatively affect operational efficiency by (1) influencing management energy, attention, risk-taking, and innovation motivations, (2) hindering employees' creativity, enthusiasm, and trust. Our findings support the inverted U-shaped association. We further explore and prove the two channels through which internal controls affect firm operational efficiency: the “information channel” (the quality of internal management reports), and the “application channel” (the enforcement of internal controls). Additionally, we show that the inverted U-shaped association only exists in non-state-owned firms. We do not find significant association between internal control quality and operational efficiency in state-owned firms. Overall, this study suggests that firms should not only establish an optimal level of internal controls, but also enforce the internal controls effectively to achieve their intended goals.
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Burnaby, Priscilla, Susan Hass, and Anthony O'Reilly. "Generic Health Care Hospital: The Road to an Integrated Risk Management System." Issues in Accounting Education 26, no. 2 (May 1, 2011): 305–19. http://dx.doi.org/10.2308/iace-10019.
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ABSTRACT Three related areas—Sarbanes-Oxley's requirements for control reports, COSO's Enterprise Risk Management (ERM) suggested control structure, and the enterprise risk management process—need more classroom materials to demonstrate to students the importance of a cohesive risk analysis process and control system for an organization to be successful and competitive. This case requires students to understand the importance of risk management, the implementation of an internal control structure, and a controls review in a hospital setting for compliance and administration of Medicare and Medicaid costs. Although the facts of the case are based on professionals' consulting experiences, the hospital in the case is fictional and is a composite of many client engagements. This case is appropriate for an analysis for potential fraud, a Sarbanes-Oxley Act (SOX) review of risks and internal controls, assessment of compliance with laws and regulations, and implementation of an enterprise-wide risk management system.
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Rija, Maurizio, and Franco Ernesto Rubino. "The Internal Control Systems Integrated into the Various Profiles of Governance, Audit, Risk and Compliance." International Journal of Business and Management 13, no. 5 (March 29, 2018): 21. http://dx.doi.org/10.5539/ijbm.v13n5p21.
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It is necessary to distinguish the internal controls from external ones: the former are the responsibility of the appropriate bodies and business functions belonging to the organization of the companies, while the latter are exercised by subjects who fall outside the company and the functional structure of the company (audit company, Consob, Bank of Italy, etc.). In recent decades there have been several scandals that have hit large enterprises, also Italian ones, which have increased interest in the issue of corporate governance and in the inefficiencies presented in internal corporation controls (Munroa & Stewart 2011). Enhancing the effectiveness of controls, in particular the internal ones, has become a need increasingly felt by international and national legislators. Internal controls are an essential tool to achieve business goals (operating constantly in terms of efficiency and effectiveness), and at the same time to avoid wastage of resources, to safeguard corporate assets, producing accounting information and reliable management, to observe the strategies, the policies and the corporate procedures and, especially, to ensure compliance with laws and regulations. in this work, it will discuss, in the italian context, the role of the board of directors and the board of statutory auditors within the (SCIGR) System of Internal Control and Risk Management (Jaggi, Allini, Manes Rossi, & Caldarelli, 2016). Moreover, the study moves the analysis to other corporate figures well determined and in constant evolution, including the head of internal audit, the activity of compliance, the supervisory body ex D.Lgs.231/2001 and the manager in charge of drafting corporate accounting documents.
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Purnomo, Bambang Hadi. "THE ROLE OF INTERNAL AUDIT IN GOVERNANCE, RISK MANAGEMENT, AND CONTROLS FOR FRAUD PREVENTION AT PPATK." Asia Pacific Fraud Journal 2, no. 1 (June 2, 2017): 15. http://dx.doi.org/10.21532/apfj.001.17.02.01.02.
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ABSTRACTLaw Number 8 of 2010 concerning the Prevention and Eradication of Money Laundering has mandated the Indonesian Financial Transaction Reports and Analysis Centre (INTRAC / PPATK) to be the focal point of every effort made to combat money laundering in Indonesia. As a focal point, PPATK receives financial transaction reports from reporting parties, which include Financial Service Providers and Goods and Services Providers, where the data provided are considered to be highly confidential. This indicates that PPATK has become a strategic institution, and thereby it should be assured that its governance, risk management, and internal control are well maintained. Government Internal Supervision Apparatus (APIP) has become more strategic and keeps its pace according to the latest needs. APIP is expected to be the agent of change that could create added-values into the products or services made by the government agency. The activity of internal audit from APIP should contribute to increase the effectiveness and efficiency of governance, risk management, and control processes. In term of risk management, internal auditor should be able to evaluate the effectiveness and his contribution towards the improvement of the risk management process. Internal auditor should monitor the process through sustainable management, separated evaluation, or both. Internal auditor should be able to evaluate the potential occurrence of fraud and how the auditee manages the fraud risk. Meanwhile, in relation to internal control, the activity of internal auditor should evaluate the adequacy and effectiveness of internal control in handling the risks of the auditee’s governance, operational, and information system.
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Muchlis, Moudy Chairina. "Analysis Of Implementation Of Internal Control Of Cash Receivings And Accounts Receivables In PT. Bright M. Yamin Medan." Return : Jurnal Akuntansi 12, no. 1 (May 31, 2021): 33–40. http://dx.doi.org/10.35335/return.v12i1.67.
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This research was conducted at PT. Bright Supermart M. Yamin Medan is engaged in the retail sale of products for the needs of the community. In Operational activities, companies implement internal controls to transaction cash receipts and accounts receivable. The purpose of this study to determine the effectiveness of internal control of cash receipts and accounts receivable activities to achieve the objective of operating profit. This type of research using quantitative research, while taking the measurements scale used is the scale interval. Type of research data using quantitative data and data sources using primary data and secondary data. Data collection techniques using observation and interviews. Based on the results of research conducted can be put forward that the internal control of cash receipts quite effectively obtaining a value of 82 with an internal scale of between 63-83. Meanwhile, internal controls for receivables will be considered effective obtaining a value of 84 with a scale interval between 84 -103. PT. Bright Supermart has implemented elements of internal control as well as on COSO, consisting of the control environment, risk assessment, control procedures, monitoring, and information and communications.
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Wallace, Wanda A., and Richard W. Kreutzfeldt. "The Relation of Inherent and Control Risks to Audit Adjustments." Journal of Accounting, Auditing & Finance 10, no. 3 (July 1995): 459–81. http://dx.doi.org/10.1177/0148558x9501000303.
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Auditors perceive that their evaluations of clients' inherent risks and internal controls are useful in assessing the likelihood of errors. Past research has indicated descriptive power for inherent risk variables but has failed, to date, to demonstrate a systematic relation between internal controls and error rate. This study extends earlier work by using a field study to measure client attributes tied to inherent and control risks and then evaluates the effectiveness of these attributes in explaining variations in adjustment rates among 260 audit clients. The data base has 1,506 adjustments, which are analyzed using a judgmentally selected regression model and a cost-beneficial analogy to an “all possible regressions” approach. Multiple variable relations provide statistically significant descriptive power with respect to audit adjustments. The results suggest the plausibility of developing a model for use in audit planning that formulates a prediction of error rate based on client inherent risk and internal control attributes.
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Sahd, Lize-Marie, and Riaan Rudman. "Mobile Technology Risk Management." Journal of Applied Business Research (JABR) 32, no. 4 (June 30, 2016): 1079–96. http://dx.doi.org/10.19030/jabr.v32i4.9723.
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Mobile technology is fast becoming an indispensable part of consumers’ lives and an essential business tool in improving productivity, streamlining business processes and remaining competitive. The mobile revolution is transforming business operations, but the pervasive nature of mobile technology also introduces new and significant risks into all areas of the businesses. In most businesses, however, the governance of mobile technology and its related risks is often disjointed and implemented in an ad hoc manner, resulting in all risks not being addressed. This lack of appropriate governance policies and procedures is a direct consequence of a lack of understanding of the technology and the speed at which new technologies are developed and adopted. If the risks are not addressed in a comprehensive manner, it could have severe consequences for a business. The objective of this research is to address this problem by using an appropriate control framework, Control Objectives for Information Technology (COBIT), to identify a comprehensive set of internal controls to address mobile technology risks at a governance, management and operational level. The research proposes a comprehensive set of internal controls which can be used by those charged with governance to manage each significant risk arising from the implementation of mobile technology.
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Park, Jennifer Kennedy, and Abena Mainoo. "Sanofi settles FCPA charges with SEC for $25.2 million." Journal of Investment Compliance 20, no. 1 (May 7, 2019): 27–30. http://dx.doi.org/10.1108/joic-01-2019-0005.
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Purpose To explain a recent enforcement action by the US Securities and Exchange Commission (SEC) highlighting risk factors for Foreign Corrupt Practices Act (FCPA) violations. Design/methodology/approach Summarizes the basis of the SEC’s enforcement action against Sanofi for violating the FCPA’s books and records and internal controls provisions, reviews the terms of the SEC’s resolution with Sanofi, explains Sanofi’s remedial efforts and cooperation with the SEC’s investigation, and discusses factors contributing to corruption risks in the healthcare industry. Findings The SEC’s enforcement action against Sanofi, and other recent enforcement actions, underscore the importance of comprehensive anti-corruption compliance programs and strong internal controls across large multinationals and their subsidiaries. Practical implications Companies operating in high-risk industries and markets should regularly assess and address corruption risks. Originality/value Practical guidance from experienced enforcement lawyers.
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Mandzila, Eustache Ebondo Wa, and Daniel Zeghal. "Content Analysis Of Board Reports On Corporate Governance, Internal Controls And Risk Management: Evidence From France." Journal of Applied Business Research (JABR) 32, no. 3 (May 2, 2016): 637–48. http://dx.doi.org/10.19030/jabr.v32i3.9668.
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The French legislature has mandated in 2008 that the board chairperson reports on governance, internal controls, and risk management approach with the objective to enhance corporate disclosures to investors. This study examines the content of board chair reports to assess their relevance and compliance with mandated disclosure requirements. Based on a sample of 109 french publicly listed comapnies in 2009, Our results show that, with the exception of banks subject to a more stringent regulatory standard, the mandatory nature of the legislation did not translate in extended disclosures about internal controls and risk management practices. We further observe significant variations among the different indices of disclosure particularly with regards internal accounting and financial control. The multivaraite results validate the influence of the chosen internal control framework as well as firm characteristics on the content of the information disclosed about governance, internal control, and risk management practices.
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Lin, Yi-Hung, Meghann A. Cefaratti, Chih-Chen Lee, and Hua-Wei Huang. "Internal Control Material Weaknesses and Foreign Corrupt Practices Act Violations." Journal of Forensic Accounting Research 3, no. 1 (December 1, 2018): A80—A104. http://dx.doi.org/10.2308/jfar-52296.
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ABSTRACT The purpose of this research is to investigate the relationship between internal control material weaknesses (ICMWs), as measured by presence, number, and type, and Foreign Corrupt Practices Act (FCPA) violations. Our results indicate that firms with ICMWs are more likely to violate the FCPA and firms with multiple ICMWs have a higher likelihood of violating the FCPA than firms with fewer ICMWs. Further, firms with ICMWs related to the risk assessment, control environment, and control activities components of internal controls (based on the COSO Internal Control—Integrated Framework) present a higher risk of FCPA violations than firms without ICMWs in those areas. These findings substantiate the importance of effective internal controls in supporting firms' regulatory compliance. JEL Classifications: M42; M48; D73.
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Karmawan, I. Gusti Made, Tangkas Udiono, and Abdul Haris. "Evaluasi Sistem Informasi Sumber Daya Manusia Pada PT XYZ." ComTech: Computer, Mathematics and Engineering Applications 1, no. 1 (June 1, 2010): 138. http://dx.doi.org/10.21512/comtech.v1i1.2206.
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The research objective was to evaluate the procedures and internal controls of Human Resource Information System XYZ. To that end, the author conducted the examination, collecting, previews and documenting the evidence that supports the information systems, so that it can find problems that occur in information systems and measure risk on internal controls to produce recommendations that can be considered. To support the research, the research uses a library, where the data obtained by reading a book and browse the website in accordance with the research are discussed. And with a field research method, which was obtained through a check list, interview and observation. Results of evaluation on the current information system, gives the conclusion that the current system has been implemented according to the company the current procedure, but found few risks to the internal controls within them.
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Mazza, Tatiana, and Stefano Azzali. "Information Technology Controls Quality and Audit Fees: Evidence From Italy." Journal of Accounting, Auditing & Finance 33, no. 1 (February 12, 2016): 123–46. http://dx.doi.org/10.1177/0148558x15625582.
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This study analyzes the impact of Information Technology (IT) Controls quality on control risk and audit fees. The impact is expected to occur when regulation increases sensitiveness to audit risk assessment. The research focuses on IT Controls as part of Internal Control over Financial Reporting, particularly on scoping quality, segregation of duties, and Controls framework compliance. The research was conducted with a questionnaire on a population of Italian listed companies. We find that audit fees are lower for higher IT scoping quality, IT Controls segregation of duties, and IT Controls framework compliance. The overall conclusion is that IT Controls quality is related to lower control risk, audit fees, and audit effort.
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Li, Huihui, Xingyu Yan, Man Yang, Mei Liu, Shan Tian, Mengru Yu, Wei-Ping Li, and Cong Zhang. "The Impact of PTPRK and ROS1 Polymorphisms on the Preeclampsia Risk in Han Chinese Women." International Journal of Hypertension 2021 (October 4, 2021): 1–10. http://dx.doi.org/10.1155/2021/3275081.
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Objective. Preeclampsia (PE) is a severe complication in pregnancy and a leading cause of maternal and infant mortality. However, the exact underlying etiology of PE remains unknown. Emerging evidence indicates that the cause of PE is associated with genetic factors. Therefore, the aim of this study is to identify susceptibility genes to PE. Materials and Methods. Human Exome BeadChip assays were conducted using 370 cases and 482 controls and 21 loci were discovered. A further independent set of 958 cases and 1007 controls were recruited for genotyping to determine whether the genes of interest ROS1 and PTPRK are associated with PE. Immunohistochemistry was used for localization. Both qPCR and Western blotting were utilized to investigate the levels of PTPRK in placentas of 20 PE and 20 normal pregnancies. Results. The allele frequency of PTPRK rs3190930 differed significantly between PE and controls and was particularly significant in severe PE subgroup and early-onset PE subgroup. PTPRK is primarily localized in placental trophoblast cells. The mRNA and protein levels of PTPRK in PE were significantly higher than those in controls. Conclusion. These results suggest that PTPRK appears to be a previously unrecognized susceptibility gene for PE in Han Chinese women, and its expression is also associated with PE, while ROS1 rs9489124 has no apparent correlation with PE risk.
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Seokjoo Andrew Chang. "Internal Controls and Risk Management: Dynamic Systems Approach for Asymptotic Pattern Analysis." Journal of Communications and Information Sciences 1, no. 2 (2011): 13–21. http://dx.doi.org/10.4156/jcis.vol1.issue2.2.
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Agang, Jared Ochieng, and Charity Njoka. "Internal Controls and Credit Risk Among Commercial Banks Listed in Nairobi Securities Exchange, Kenya." International Journal of Current Aspects in Finance, Banking and Accounting 2, no. 2 (October 20, 2020): 77–92. http://dx.doi.org/10.35942/ijcfa.v2i2.141.
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Inappropriate credit policies, as well as inadequate, limited institutional capacity by Kenya's financial sector, led to several of the banking institutions collapsing over what was termed as poor management of credit risks which resulted to increased amounts of loans that were not being serviced. The main aim of the research project was to establish the effects of internal controls on credit risk among the banks listed in NSE. The distinctive goals included to find out the influence of internal control, assessing risk ,activities in control and monitoring among banking organizations listed in NSE. The study was guided by capital asset pricing model, agency theory and modern portfolio theory. The study adopted a casual descriptive research design. The target population encompassed the eleven listed banks in Nairobi Securities Exchange where cencus was done. Both primary and secondary data were collected. The questionnaires were applied to gather data. The diagnostic tests include multicollinearity and normality. Data was evaluated using both descriptive and inferential statistics using SPSS. The findings show that there is a positive and significant link between monitoring and credit risk. The study found that assessment of the risk has a significant way on credit risk and that internal controls that are not strong such as poor ethical values have stimulated the involvement to fraud that leads to income loss and misuse of the income received. The study concluded that risk assessment P=.000 < 0.05, control activities P=.000 < 0.05, monitoring and control environment P=.001 < 0.05 have a significant effect on credit risk among commercial banks listed in NSE. The study recommends that banks should implement proper risk assessment to guide their operations and also implement efficient control activities to guide their operations. Further, the study recommends that banks’ monitoring approaches should be guided towards effective tasks and achieving the goals of the organization. In regard to propositions for more studies, this investigation could be further advanced by looking at the effect on credit risk management in other institutions such as investment banks and microfinances. It will help in the management of credit unions, Savings and Loans Associations, investment banks and microfinances in Kenya.
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Endovitskii, D. A., S. V. Golovin, and N. E. Spiridonova. "The relationship between external and internal control systems of the budgetary institution." International Accounting 23, no. 11 (November 13, 2020): 1240–52. http://dx.doi.org/10.24891/ia.23.11.1240.
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Subject. This article explores the relationship between external and internal control systems of budgetary institutions. Objectives. The article aims to analyze the relationship between external and internal control systems of the budget-funded entity. Methods. For the study, we used the methods of analysis, grouping, comparison, and generalization. Results. The article defines the contents of the concepts of External Control of the Budgetary Institution and Internal Control of the Budgetary Institution and compares external and internal controls, revealing common features and fundamental differences. The article also presents a structured system of external control in the Russian Federation and reveals the relationship between external and internal controls as elements of a unified control system. Conclusions. The interaction of external and internal controls rules out overlapping of control activities and contributes to improving external control efficiency and more efficient risk-oriented planning within internal control.
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Lee, Geun, Young Do, Hee Park, Junu Kim, Jin Hur, Kyunghwa Han, Tae Kim, et al. "Risk of Primary Spontaneous Pneumothorax According to Chest Configuration." Thoracic and Cardiovascular Surgeon 66, no. 07 (January 19, 2018): 583–88. http://dx.doi.org/10.1055/s-0037-1620273.
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Background We compared the chest configurations of patients with primary spontaneous pneumothorax (PSP) and age-sex-matched controls to determine the presence of chest wall deformities in patients with PSP. Methods We retrospectively enrolled 166 male patients with PSP (age, 18–19 years) and 85 age-sex-matched controls without PSP, who simultaneously underwent chest computed tomography (CT) and radiography at one of two institutes. After correcting for height, the following thoracic parameters were comparatively evaluated between the two groups: maximal internal transverse (T) and anteroposterior (W) diameters of the chest, maximal internal lung height (H), Haller index (T/W), and T/Height, T/H, W/Height, W/H, and H/Height ratios. Results Patients were taller than the control subjects (176.5 cm ± 5.9 cm versus 174.4 cm ± 5.6 cm; p = 0.007). After controlling for height, the patient group exhibited lower T and W and greater H and Haller index values than the control group (T: 95% confidence interval [CI], 24.8–25.2 cm versus 25.9–26.5; W: 95% CI, 8.9–9.2 cm versus 10.1–10.6 cm; H: 95% CI, 25.2–25.9 cm versus 23.4–24.4 cm; and Haller index, 95% CI, 2.7–2.9 versus 2.4–2.6; all, p < 0.001). The patient group also exhibited lower T/Height, T/H, W/Height, and W/H ratios and greater H/Height ratio than the control group. Conclusions Patients with PSP have an anteroposteriorly flatter, laterally narrower, and craniocaudally taller thorax than subjects without PSP, suggesting that chest configuration is associated with the development of pneumothorax.
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Lartey, Peter Yao, Santosh Rupa Jaladi, Stephen Owusu Afriyie, and Isaac Gumah Akolgo. "Principles of public internal controls: A mediation role of information and communication." Frontiers in Management and Business 3, no. 1 (2022): 149–66. http://dx.doi.org/10.25082/fmb.2022.01.002.
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While empirical research has demonstrated the critical nature of internal controls, there is insufficient evidence to indicate that they are effective at detecting and preventing irregularities in the public sector. By analyzing the direct and indirect relationships between internal control components, this study focuses on the quality of internal control in Ghana's public sector. In order to determine whether ongoing controls are consistent with sound public policy, a survey was designed and distributed to public sector employees and managers. According to the evidence, public administrators require high-quality information and communication tools to supplement their existing control systems. Additionally, internal controls are significantly influenced by risk assessment and the control environment, whereas monitoring and control activities have a limited impact. Effective internal communication is necessary for the coordination and implementation of control policies.
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Bae, Jung Min, Kee Yang Chung, Sook Jung Yun, Heesu Kim, Byung Cheol Park, Joung Soo Kim, Soo Hong Seo, et al. "Markedly Reduced Risk of Internal Malignancies in Patients With Vitiligo: A Nationwide Population-Based Cohort Study." Journal of Clinical Oncology 37, no. 11 (April 10, 2019): 903–11. http://dx.doi.org/10.1200/jco.18.01223.
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PURPOSE Recent studies indicated that the autoimmunity of vitiligo exerts effects on cells other than melanocytes, which confer reduced risks of both melanoma and nonmelanoma skin cancers in patients with vitiligo. However, the risk of internal malignancy in patients with vitiligo has not been elucidated. PATIENTS AND METHODS We conducted a population-based retrospective cohort study using data from the Korean National Health Insurance claims database obtained from January 2007 to December 2016. All patients age 20 years or older with vitiligo who had at least two contacts with a physician from 2009 to 2016, during which a principal diagnosis was made, were identified (vitiligo group). Controls were randomly selected (two per patient with vitiligo) after frequency matching with the vitiligo group for age and sex during the same period (control group). RESULTS A total of 101,078 patients with vitiligo and 202,156 controls without vitiligo were included. The incidence rates of internal malignancies were 612.9 and 708.9 per 100,000 person-years in the vitiligo and control groups, respectively. Patients with vitiligo showed a significantly reduced risk of overall internal malignancies (hazard ratio [HR], 0.86; 95% CI, 0.82 to 0.89; P < .001) compared with controls without vitiligo after adjustments for age, sex, and comorbidities. With regard to organ-specific malignancies, patients with vitiligo showed a remarkably decreased risk of cancer in the colon and rectum (HR, 0.62; 95% CI, 0.55 to 0.69; P < .001), ovary (HR, 0.62; 95% CI, 0.46 to 0.83; P < .001), and lung (HR, 0.75; 95% CI, 0.65 to 0.86; P < .001). CONCLUSION Vitiligo was associated with a reduced risk of overall internal malignancies. These findings suggest that autoimmune diseases, including vitiligo, may provide immune surveillance for the development of cancer beyond the targeted organ.
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Sharma, Raj Bahadur, and Nabil Ahmed M. Senan. "A Study on Effectiveness of Internal Control System in Selected Banks in Saudi Arabia." Asian Journal of Managerial Science 8, no. 1 (February 5, 2019): 41–47. http://dx.doi.org/10.51983/ajms-2019.8.1.1449.
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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.
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Boskou, Georgia, Efstathios Kirkos, and Charalambos Spathis. "Assessing Internal Audit with Text Mining." Journal of Information & Knowledge Management 17, no. 02 (June 2018): 1850020. http://dx.doi.org/10.1142/s021964921850020x.
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Recently internal controls, corporate governance and risk management have received a great deal of attention. Regarding internal control, several research studies address the issue of internal audit quality. Noteworthy, according to Sarbanes–Oxley (SOX) the internal controls over financial reporting are assessed by the auditors and the management. In the present study, we assess internal controls over financial reporting by employing Text Mining techniques. We analyse the annual reports of 133 publicly traded Greek Companies. The textual parts of the annual reports that refer to internal audit mechanism are extracted. We adopt a Vector Space model and the term-document matrix records the occurrence frequencies of the terms. By applying feature selection, a set of significant keywords, which are used as predictors, is extracted. The Linear Regression model developed explains the variance of the data and highlights significant predictors. The model manages to successfully assess the internal audit function. By performing PCA, major underlying procedures and concepts related to internal audit quality are revealed. Inspite of the undoubted importance of the assessment of internal audit, no previous attempt has been made to assess internal audit and to extract internal audit information from corporate disclosures by using Text Mining techniques. Our results can be useful to internal and external auditors, managers, company decision-makers, regulators and researchers.
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Bagley, Penelope L., Beau Grant Barnes, and Nancy L. Harp. "Evaluating Risk and Processing Integrity Controls over Spreadsheets: An Educational Case." Issues in Accounting Education 34, no. 3 (April 1, 2019): 21–40. http://dx.doi.org/10.2308/iace-52426.
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ABSTRACT This case requires students to create a spreadsheet inventory, assess the risk related to each spreadsheet inventoried, and perform internal control testing on the spreadsheet deemed to be of the highest risk. Completing the case will benefit students in many ways. First, the case will familiarize students with creating a spreadsheet inventory. Second, it will familiarize students with the risks associated with spreadsheet errors by requiring them to evaluate and consider such risks. Third, the case will provide students with practice in evaluating spreadsheet controls and detecting spreadsheet errors. Finally, the case will increase students' awareness of the pervasiveness and potentially negative impact that spreadsheet errors can have on financial reporting.
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Davis, Jefferson T., Sridhar Ramamoorti, and George W. Krull. "Understanding, Evaluating, and Monitoring Internal Control Systems: A Case and Spreadsheet Based Pedagogical Approach." AIS Educator Journal 12, no. 1 (January 1, 2017): 59–68. http://dx.doi.org/10.3194/1935-8156-12.1.59.
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ABSTRACT This paper describes a case approach for teaching internal control evaluation (ICE) using an Excel spreadsheet patterned after software from Grant Thornton LLP (Grant) named INFOCUS. Although INFOCUS is not used or supported anymore by Grant, it was used for many years in training and development for ICE theory and application at the firm. Grant allows use of their software and approach for classroom use. From a conceptual pedagogy perspective, this approach is still applicable to current practice standards and guidelines for ICE and provides a systematic application to help students take the role of an auditor to document the accounting system, document the controls, select key controls, and make the preliminary control risk assessment. The case and spreadsheet application can also be applied to the COSO 2013 Framework focusing mostly on Risk Assessment, Control Activities, and Monitoring Activities to internal control systems. The spreadsheet application can accommodate cases that provide differing company sizes and levels of automated control environments for internal audit and management perspectives. This case and spreadsheet application provides students an opportunity to deeply understand and analyze the accounting processes, the internal controls, and the interrelationships between the processes and controls. Exposure to such a case and spreadsheet application helps prepare students to successfully complete internal control evaluations in the “real world.”
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Kizirian, Tim, Tim Heinze, and John (Skip) Lees. "Internal Controls For Hospitality Revenue In The Gaming Industry." Journal of Business & Economics Research (JBER) 9, no. 8 (July 26, 2011): 15. http://dx.doi.org/10.19030/jber.v9i8.5291.
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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.
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Han, Shipeng, Zabihollah Rezaee, Ling Xue, and Joseph H. Zhang. "The Association between Information Technology Investments and Audit Risk." Journal of Information Systems 30, no. 1 (October 1, 2015): 93–116. http://dx.doi.org/10.2308/isys-51317.
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ABSTRACT Advances in information technology (IT) have changed the way that companies conduct business, prepare their financial statements, and have their financial statements audited. On one hand, IT decreases audit risk by improving operation and internal control effectiveness, which may decrease inherent and internal control risk. On the other hand, the complexity of IT introduces unconventional risks for companies and their auditors, especially by creating challenges for auditors when auditing the effectiveness of internal controls and detecting accounting irregularities. Thus, the relationship between clients' IT investments and audit risk deserves research attention. Using IT data of U.S. firms from 2000 to 2009, we find that IT investments are positively related to audit fees (and abnormal audit fees), the probability of auditors' issuance of a going-concern opinion, and the likelihood of auditors' Type II errors. Furthermore, we find that auditor tenure moderates the relationship between IT investments and audit fees due to the learning effect.
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Lesmana, Iwan. "RISIKO OPERASIONAL BANK DAN PERMODELANNYA." INDONESIAN JOURNAL OF ACCOUNTING AND GOVERNANCE 1, no. 1 (December 10, 2019): 28–43. http://dx.doi.org/10.36766/ijag.v1i1.2.
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Managing bank’s operational risks becoming an important feature of sound risk management practice in modern financial markets. The most important types of operational risk involve breakdown in internal controls and corporate governance, which could lead to financial losses through fraud, error or failure to perform. Development of statistic has accelarated banks to create internal operational risk models in different ways. Although those models created in different ways, they surely use the pattern of risk management that is developed by Basel Committee on Banking Supervision. Basel Committee on Banking Supervision has proposed three increasingly sophisticated approaches of operational risk, i.e basic indicator approach, standardized approach and advanced measurement approach. Applying those approaches will help banks to eliminate the operational risk, that will lead them to a better intermediation process.
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Doepp, F., JM Valdueza, and SJ Schreiber. "Incompetence of Internal Jugular Valve in Patients with Primary Exertional Headache: A Risk Factor?" Cephalalgia 28, no. 2 (November 16, 2007): 182–85. http://dx.doi.org/10.1111/j.1468-2982.2007.01484.x.
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The pathophysiology of primary exertional headache (EH) is unknown. Physical exertion is associated with Valsalva-like manoeuvres (VM). VM leads to increased intrathoracic pressure and reduces cerebral venous drainage. Internal jugular vein valve incompetence (IJVVI) leads to retrograde venous flow during VM with transient increase of intracranial pressure. We analysed the prevalence of IJVVI in EH patients using duplex ultrasound. Bilateral measurements were performed at rest and during VM in 20 patients and 40 controls. Incompetence was concluded if retrograde venous flow could be seen in the jugular Doppler spectrum during repeated VM. Seventy percent of EH patients and 20% of controls demonstrated IJVVI, yielding a significant difference ( P = 0.0004). IJVVI was always observed on the dominant venous drainage side. Our study suggests that intracranial venous congestion caused by retrograde jugular venous flow might play a role in the pathophysiology of EH with IJVVI as a risk factor.
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ORLOVA, Mariya Yu. "Risk-based internal control of key business processes as a mechanism of economic agent's sustainable development." Finance and Credit 27, no. 12 (December 27, 2021): 2746–71. http://dx.doi.org/10.24891/fc.27.12.2746.
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Subject. The article discusses theoretical and practical principles of internal control from the building stage to maintaining its effectiveness at a high level. Objectives. The aim is to examine various interpretations of internal control and internal control procedure concepts, detect difficulties of economic entities in developing, implementing, and managing the internal control, offer a model, enabling to systematize these processes through focusing on risk management of key business processes and harmonization of internal control procedures. Methods. The study rests on general methods of research, like logical analysis, generalization, grouping, and modeling. Statutory instruments in the sphere of financial and fiscal accounting and works by domestic authors serve as a theoretical framework for the study. Results. I analyze the internal control, considering the industry affiliation of economic actors. The interpretation of internal control concept is supplemented by a new element, i.e. ‘identification of key business processes’. The paper presents a matrix of internal control management, which is intended to mitigate risks inherent in key business processes. Conclusions. The said matrix may be used by any economic entity as a theoretical and methodological basis for building internal controls. The offered model and matrix enable to cover risk areas and mitigate significant risks, ensure the accuracy of financial reporting, and, as a result, sustainable development of economic entity.
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Toniolo, Paolo, Fulvia Protta, and Alberto P. M. Cappa. "Risk of Breast Cancer, Diet and Internal Migrations in Northern Italy." Tumori Journal 75, no. 5 (October 1989): 406–9. http://dx.doi.org/10.1177/030089168907500502.
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The protective effect of birth in southern Italy as opposed to other regions was evaluated in a population-based case-control study of diet and breast cancer among residents In the province of Vercelli. Cases were 250 women with breast cancer diagnosed during 1983-1984 and controls 499 women randomly selected from the general population. The crude relative risk of breast cancer for women born in the south was 0.76 (95% confidence interval, 0.43-1.3). After adjustment for dietary and other potential confounders in multivariate analyses, the protective effect of place of birth disappeared (RR 1.0; 95 % CI, 0.57-1.9). The study indicates that north-south differences in the incidence of breast cancer in Italy may in large part be attributed to different dietary habits.