Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 8

Internal control Related Abstracts

8 Internal Audit and the Effectiveness and Efficiency of Operations in Hospitals

Authors: Naziru Suleiman

Abstract:

The ever increasing cases of financial frauds and corporate accounting scandals in recent years have raised more concern on the operation of internal control mechanisms and performance of the internal audit departments in organizations. In most cases the seeming presence of both the internal control system and internal audit in organizations do not prove useful as frauds errors and irregularities are being perpetuated. The aim of this study, therefore, is to assess the role of internal audit in achieving the objectives of internal control system of federal hospitals in Kano State from the perception of the respondents. The study used survey research design and generated data from primary source by means of questionnaire. A total number of 100 copies of questionnaire were administered out of which 68 were duly completed and returned. Cronbach’s alpha was used to test the internal validity of the various items in the constructs. Descriptive statistics, chi-square test, Mann Whitney U test and Kruskal Wallis ANOVA were employed for the analysis of data. The study finds that from the perception of the respondents, internal audit departments in Federal Hospitals in Kano State are effective and that they contribute positively to the overall attainment of the objectives of internal control system of these hospitals. There is no significant difference found on the views of the respondents from the three hospitals. Hence, the study concludes that strong and functional internal audit department is a basic requirement for effectiveness of operations of the internal control system. In the light of the findings, it is recommended that internal audit should continue to ensure that the objectives of internal control system of these hospitals are achieved through proper and adequate evaluation and review of the system.

Keywords: Internal control, internal audit, federal hospitals, financial frauds

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7 Research on Measuring Operational Risk in Commercial Banks Based on Internal Control

Authors: Baobao Li

Abstract:

Operational risk covers all operations of commercial banks and has a close relationship with the bank’s internal control. But in the commercial banks' management practice, internal control is always separated from the operational risk measurement. With the increasing of operational risk events in recent years, operational risk is paid more and more attention by regulators and banks’ managements. The paper first discussed the relationship between internal control and operational risk management and used CVaR-POT model to measure operational risk, and then put forward a modified measurement method (to use operational risk assessment results to modify the measurement results of the CVaR-POT model). The paper also analyzed the necessity and rationality of this method. The method takes into consideration the influence of internal control, improves the accuracy and effectiveness of operational risk measurement and save the economic capital for commercial banks, avoiding the drawbacks of using some mainstream models one-sidedly.

Keywords: Internal control, operational risk, Risk Measurement, commercial banks

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6 Determine the Effectiveness of Group Therapy with Reality Therapy Approach to Reduce Symptoms of Anxiety, Increase Self-esteem, and Internal Control in Infertile Women

Authors: Mansour Abdi, Fatemeh Alsadat Borhani, Hassan Heydari

Abstract:

The purpose of this study to determine the effectiveness of group therapy with approach reality therapy in reducing symptoms of anxiety and increased self- esteem and internal control of infertile women. The population of this study is all infertile women in Qom city in 2012 that with the use of purposeful sampling, 32 individuals were selected as sample. 16 individuals of infertile women in the control group and 16 infertile women in the experimental group is replaced. The research design was of type quasi-experimental with design pretest-posttest with control group. Thus, infertile women were randomly appointed in the experimental and control groups. Also, in this study data through normalized questionnaires, the Beck Anxiety scale, Rotter's Locus of control inventory, Cooper Smith self-esteem inventory was collected. For analysis of data, descriptive statistics, mean, standard deviation and inferential statistics, one way analysis of covariance model with SPSS version 20 software was used. The findings indicated that intervention of the group therapy with approach reality therapy in experimental group reduced symptoms of anxiety and mutually increased self-esteem and internal control in infertile women of experimental group.

Keywords: Anxiety, Internal control, reality therapy, infertile women, self esteem

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5 Effect of Internal Control Weaknesses and Audit Opinion to the Findings of State Losses

Authors: Wiji Wijaya

Abstract:

The aim of this research is to examine the effect of internal control weaknesses and audit opinion on the state’s loss findings of audit compliance to the regulation in public sector. The samples of this research consisted of 175 local government financial statements in the area of Central Java Province at 2009 until 2013. Area sampling design was used to select the financial statements. This study using quantitative descriptive statistical analysis and regression was run for data analysis and hypothesis examination. Result of this study indicated that internal control weaknesses and audit opinion contributes a positive influence which is significant to the state’s loss findings of audit compliance to the regulation. The internal control weaknesses that affect the state's loss finding are weakness control system of accounting and reporting with the value of the critical ratio 0.010 p 2.613 ; weakness budget execution control system with critical ratio value of 3.421 p 0.001 and weaknesses internal control structure with critical ratio value of 2.246 p 0.026 . While the audit opinion with a critical ratio value of 4.401 p 0.000. The implications of this research so that policy makers at the local government should give more attention to the implementation and improvement of internal control system.

Keywords: Local Government, Internal control, audit compliance findings, state’s loss, audit opinion

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4 Effective Internal Control System in the Nasarawa State Tertiary Educational Institutions for Efficiency- A Case of Nasarawa State Polytechnic Lafia

Authors: Dauda Ibrahim Adagye

Abstract:

Effective internal control system in the bursary unit of tertiary educational institutions is geared toward achieving quality teaching, learning, and research environment and as well assist the management of the institutions, particularly when decisions are to be made. While internal control system exists in all institutions, the outlined objectives above are far from being achieved. The paper; therefore, assesses the effectiveness of internal control system in tertiary educational institutions in Nasarawa State, Nigeria with the specific focus on the Nasarawa state Polytechnic, Lafia. The study is survey; hence, a simple closed-ended questionnaire was developed and administered to a sample of twenty-seven (27) member staff from the Bursary and the internal audit unit of the Nasarawa State Polytechnic, Lafia to obtain data for analysis purposes and to test the study hypothesis. Responses from the questionnaire were analyzed using a simple percentage and chi-square. Findings shows that the right people are not assigned to the right job in the department, budget, and management accounting were never used in the institution’s operations and checking of subordinate by their superior officers is not regular. This renders the current internal control structure of the Polytechnic as ineffective and weak. The paper therefore, recommends that: transparency should be seen as significant, as the institution work toward meeting its objectives, therefore, it means that the right staff is assigned to the right job and regular checking of the subordinates by their ensued superiors.

Keywords: Efficiency, Internal control, tertiary educational intuitions

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3 Impact of Internal Control on Fraud Detection and Prevention: A Survey of Selected Organisations in Nigeria

Authors: Amos Olusola Akinola

Abstract:

The aim of this study is to evaluate the internal control system on fraud prevention in Nigerian business organizations. A survey research was undertaken in five organizations from the banking and manufacturing sectors in Nigeria using the simple random sampling technique and primary data was obtained with the aid structured questionnaire drawn on five likert’s scale. Four Hypotheses were formulated and tested using the T-test Statistics, Correlation and Regression Analysis at 95% confidence interval. It was discovered that internal control has a significant positive relationship with fraud prevention and that a weak internal control system permits fraudulent activities among staff. Based on the findings, it was recommended that organizations should continually and methodically review and evaluate the components of its internal control system whether activities are working as planned or not and that every organization should have pre-determined guidelines for conducting its operations and ensures compliance with these set guidelines while proactive steps should be taken to establish the independence of the internal audit by making the audit reportable to the governing council of an organization and not the chief executive officer.

Keywords: Fraud Detection, Internal control, Fraud Prevention, internal audit, internal system

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2 The Role of the Internal Audit Unit in Detecting and Preventing Fraud at Public Universities in West Java, Indonesia

Authors: Fury Khristianty Fitriyah

Abstract:

This study aims to identify the extent of the role of the Satuan Pengawas Intern (Internal Audit Unit) in detecting and preventing fraud in public universities in West Java under the Ministry of Research, Technology and Higher Education. The research method applied was a qualitative case study approach, while the unit of analysis for this study is the Internal Audit Unit at each public university. Results of this study indicate that the Internal Audit Unit is able to detect and prevent fraud within a public university environment by means of red flags to mark accounting anomalies. These stem from inaccurate budget planning that prompts inappropriate use of funds, exacerbated by late disbursements of funds, which potentially lead to fictitious transactions, and discrepancies in recording state-owned assets into a state property management system (SIMAK BMN), which, if not conducted properly, potentially causes loss to the state.

Keywords: Governance, Internal control, Fraud, public university

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1 Enhancement of Accountability within the South African Public Sector: Knowledge Gained from the Jackie Selebi Case

Authors: Y. Nanabhay

Abstract:

This paper scrutinizes the literature on accountability and nonaccountability and then presents an analysis of a South African case which demonstrated consequences of a lack of accountability. Ethical conduct displayed by members of the public sector is integral to creating a sustainable democratic government, which upholds the constitutional tenets of accountability, transparency, and professional ethicality. Furthermore, a true constitutional democracy emphasises and advocates the notion of service leadership that nurtures public participation and engages with citizens in a positive manner. Ethical conduct in the public sector earns public trust; it is hence a key principle in good governance. Yet, in the years since the advent of democracy in South Africa, the government has been plagued by rampant corruption and maladministration by public officials and politicians in leadership positions. The external control measures passed by government in an attempt to ensure ethicality and accountability within the public sector include codes of ethics, rules of conduct and the enactment of legislation. These are intended to shape the mindset of members of the public sector, with the ultimate aim of an efficient, effective, ethical, responsive, and accountable public service. The purpose of the paper is to analyse internal control systems and accountability within the public sector and to present reasons for nonaccountability by means of a selected case study. The selected case study is the corruption trial of Jackie Selebi, who served as National Commissioner of the South African Police Service but was dismissed from the post. The reasons for non-accountability in the public sector, as well as recommendations based on the findings to enhance accountability, will be undertaken. The case study demonstrates the experience and impact of corruption and/or maladministration, as a result of a lack of accountability, which has contributed to the increasing loss of confidence in political leadership in the country as elsewhere in the world. The literature is applied to the rise and fall of Jackie Selebi, erstwhile National Commissioner of the South African Police Service and President of Interpol, as a case study of nonaccountability.

Keywords: Corruption, Public Sector, Internal control, Public Accountability, maladministration, non-compliance, oversight mechanisms

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