The essential management defects and constraint strategies in the internal control mechanism of listed companies in China

2011 ◽  
Author(s):  
Chenyun Ye ◽  
Jingwen Li ◽  
Zhihua Xie
Keyword(s):  
Internal Control ◽  
Control Mechanism ◽  
Listed Companies

The Severity of Internal Controls over Financial Reporting Deficiencies: Differences among Types and Industries

2014 ◽  
pp. 55-77
Author(s):  
Tatiana Mazza ◽  
Stefano Azzali
Keyword(s):  
Information Technology ◽  
Financial Reporting ◽  
Internal Control ◽  
Service Industry ◽  
Listed Companies ◽  
Internal Controls ◽  
Service Companies ◽  
Finance Industry ◽  
Material Weaknesses ◽  
Fixed Assets

This study analyzes the severity of Internal Control over Financial Reporting deficiencies (Deficiencies, Significant Deficiencies and Material Weaknesses) in a sample of Italian listed companies, in the period 2007- 2012. Using proprietary data the severity of the deficiencies is tested for account-specific, entity level and information technology controls and for industries (manufacturing and services vs finance industries). The results on ICD severity is compared with one of the most frequent ICD (Acc_Period End/Accounting Policies): for account-specific, ICD in revenues, purchase, fixed assets and intangible, loans and insurance are more severe while ICD in Inventory are less severe. Differences in ICD severity have been found in the characteristic account: ICD in loan and insurance for finance industry and ICD in revenue, purchase for manufacturing and service industry are more severe. Finally, we found that ICD in entity level and information technology controls are less severe than account specific ICD in all industries. However, the results on entity level and information technology deficiencies could also mean that the importance of these types of control are under-evaluated by the manufacturing and service companies.

scholarly journals What are the costs and benefits of an international corporate governance reregulation?

2018 ◽  
Vol 7 (3) ◽  
pp. 31-36
Author(s):  
Francesco Di Tommaso
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Evolutionary Process ◽  
Listed Companies ◽  
Governance Structure ◽  
Organizational Model ◽  
Corporate Governance Structure ◽  
Information Transparency ◽  
International Corporate Governance ◽  
International Investors

This work is a research that applies the organizational model of the business organization of corporate governance, to a process of changing in the organizational structure. This paper defines the various organizational solutions and the various levels of complexity that the corporate governance structure, through its reference context, the load of available information and objectives, must support by choosing the optimal organizational solution. Before 2005 Enron under the management of the American government with logic of mass production not very attentive to the different needs of customers. Today the optimal organizational solution adopted is the "perfect integration with its distributors" throughout the peninsula, maximizing the quality of service to the customer and the knowledge of the various areas of expertise making the company more flexible and more competitive. The growing generalized attention (businesses, investors, academic circles) towards of the internal control system is part of a complex evolutionary process characterized from greater competition/boost to efficiency, emphasis on information transparency, innovative regulatory evolution. The importance of the theme of corporate governance in the world is further increased thanks to the drafting of the international Corporate Governance Code for listed companies, which aims to reassure the community of international investors on the existence, in listed companies, of an organizational model which provides for adequate allocation of responsibilities and powers, and a correct one balance between management and control.

The Empirical Study on Factors Influencing the Disclosure of Internal Control Information of Listed Companies

2010 ◽  
Vol 159 ◽  
pp. 162-167
Author(s):  
Hong Ming Chen ◽  
Ya Nan Shi
Keyword(s):  
Internal Control ◽  
Principal Component ◽  
Listed Companies ◽  
Equity Structure ◽  
Audit Opinion ◽  
Financial Report ◽  
Control Information ◽  
External Stakeholders ◽  
Asset Turnover ◽  
Important Means

The internal control is an important means to realize the purpose of organizations, however, the effectiveness of internal control depends on not only the design, more important, but its rationality, completion and effectiveness of operation. The disclosure of internal control information is usually a way of examining the effectiveness of internal control’s operation for management and evaluating the company’s operational condition and forecasting its development foreground for external stakeholders. Due to the lack of unified standards for disclosure of internal control information, the obscurity of responsibility, centralization of ownership and some others, the disclosure of internal control did not implement effectively. Based on the data of the 19 listed companies of real estate companies during 2007-2009, the article analyzes the influence of equity structure, sales growth, financial leverage, net assets yield, and audit opinion on financial report, enterprise scale, total asset turnover and current ratio to the disclosure of internal control information. It applies the principal component analysis (PCA) and multivariate linear regression

scholarly journals The Independence Issue and Audit a Comparative Study of Portugal (EU) and Nordic Countries – A Theoretical Approach

e-Finanse ◽  
2020 ◽  
Vol 16 (3) ◽  
pp. 19-28
Author(s):  
Alcina Augusta De Sena Portugal Dias
Keyword(s):  
Corporate Governance ◽  
Public Opinion ◽  
Comparative Study ◽  
Internal Control ◽  
Theoretical Approach ◽  
Financial Engineering ◽  
Ethical Issues ◽  
Listed Companies ◽  
Nordic Countries ◽  
Good Practices

Abstract The objective of this paper is to speak about the issue of independence. To reach this goal corporate governance was considered as an example of good practices that may help organizations prevent fraud. Fraud was considered under a perspective of financial engineering - dedicated to building, enabling and displaying high dividends to shareholders that were non-existent. These events defrauded public opinion on the trust in the auditor and the confidence in the companies and showed the lack of independence of the different players. It must be said that the participation in these frauds was shared, at least, by the top management, the auditors and the accounting personnel. As an immediate consequence some ethical issues and guidelines for the reinforcement of the organization′s internal control arose. As concerns the factor of independence, particular stress on the supervising and inspecting functions of the Portuguese Stock Commission –CMVM - was considered. This entity is responsible for the supervision of the listed companies but at the same time it inspects the auditor′s work for the companies in its portfolio. A benchmarking analysis with the Nordic countries of Norway, Sweden and Finland was done. This was undertaken because these countries show some relevant cultural and ethical differences and a peculiar cultural/organizational approach that should be considered.

scholarly journals The role of effective audit committee in strengthening the financial reporting: Evidence from Jordanian listed companies

2012 ◽  
Vol 9 (3) ◽  
pp. 59-68 ◽  
Author(s):  
Mo’taz Amin Al-Sa’eed ◽  
Soud M. Al-Mahamid
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Audit Committee ◽  
Internal Audit ◽  
Listed Companies ◽  
International Standards ◽  
Future Research ◽  
External Audit ◽  
Cross Sectional ◽  
Study Results

This study aims to understand the features of an effective audit committee and its role in strengthening financial reporting. A questionnaire based survey was circulated to public listed companies on the Amman Stock Exchange (Banking, insurance, and financial institutions). The study was aimed at internal audit managers and finance managers. Out of 156 questionnaires, we received 110 back which represents a 71% response rate. The study results show that the research respondents have a good level of education and experience. In addition, there is a relationship between internal controls, international standards on auditing, institute of internal audit; Jordan securities commission requirements, external audit, understanding of audit committee functions, and financial reporting. Furthermore, the internal control, international standard on auditing and institute of internal audit, Jordan securities commission requirements, External audit, understanding of audit committee functions can explain a significant amount of the variability in financial reporting. Finally, the research results also show that age and gender make a difference for our respondents when they evaluate financial reporting. The study like other cross sectional studies is not free of limitations. Managerial implications and new avenues of future research are supplied. Future research also can borrow the research model and apply a longitudinal study to solve the cross sectional study problems.

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