Criminal capital: how the finance industry facilitates crime

doi:10.5860/choice.192480

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

FINANCIAL REPORTING ◽

10.3280/fr2014-001003 ◽

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.

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The Dubai World Islamic Finance Arbitration Center and the Dubai World Islamic Finance Arbitration Center Jurisprudence Office as the Dispute Resolution Center and Mechanism for the Islamic Finance Industry: Issues and a Proposed Framework

Journal of Business and Economics ◽

10.15341/jbe(2155-7950)/05.06.2015/016 ◽

2015 ◽

Vol 6 (5) ◽

pp. 1003-1025

Author(s):

Camille Paldi

Keyword(s):

Dispute Resolution ◽

Islamic Finance ◽

Finance Industry

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General Takaful claims: An experience of Takaful operator in Malaysia

Journal of Emerging Economies and Islamic Research ◽

10.24191/jeeir.v5i4.8833 ◽

2017 ◽

Vol 5 (4) ◽

pp. 18

Author(s):

Amirul Afif Muhamat ◽

Mohamad Nizam Jaafar ◽

Sharifah Faigah Syed Alwi

Keyword(s):

Life Insurance ◽

Islamic Finance ◽

Rigorous Analysis ◽

Finance Industry ◽

General Insurance ◽

Bright Side ◽

Main Components ◽

Islamic Insurance ◽

Gathering Data ◽

Observation Period

Takaful is interchangeably referred as Islamic insurance. In Malaysia, the takaful sector is part of the main components for Islamic finance industry. The business can be divided into two: general and family takaful. To ease understanding on this niche sector; general takaful is comparable to general insurance while family takaful is akin to life insurance with special reference needs to be given on the requirement of the business to adhere to the Islamic precepts. The main business in general takaful is motor takaful and this line of business is faced with high takaful claims. This study appraised the factors which affect the general takaful claims based on the experience of one takaful operator in Malaysia (the name of takaful operator is not disclosed due to confidentiality). The factors are: number of claims; fraud; and coverage for protection. The limitation of this study is that the observation period is only 10 years which limits rigorous analysis to be done. Nevertheless, previous studies in this area depict the same limitation – constraint in gathering data that has long observation period. On the bright side, the data in this study is still capable to produce meaningful results to be referred with regards to this issue – general takaful claims.

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