Risk Management and Internal Control: A Study of Management Accounting Practice

Bento, Ricardo Ferreira; Mertins, Lasse; White, Lourdes Ferreira

doi:10.1108/s1474-787120180000030002

Cited by 18 publications

(9 citation statements)

References 20 publications

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“…The focus of the study is on personnel involved in fraud-management, specifically, internal auditors. Respondents are chosen on the basis of their knowledge and positions as internal auditors in monitoring transactions (Bento et al , 2018), improving governance process, and detecting, preventing and reporting fraud (Kabuye et al , 2017).…”

Section: Methodsmentioning

confidence: 99%

“…When internal audit uses procedures of risk-based auditing (Sarens et al, 2012;Zainal Abidin, 2017), the function provides assurance that risks are mitigated properly, which positively influences corporate governance quality (Coram et al, 2008;Lenz and Hahn, 2015). In their empirical work, Coram et al (2008) and Salameh et al (2011) find that insource IAA can detect and prevent fraud in their organisations (Bento et al, 2018). However, Kabuye et al (2017) find an insignificant relationship between IAA and managing the level of fraud.…”

Section: Internal Audit Activitiesmentioning

confidence: 99%

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Risk management, top management support, internal audit activities and fraud mitigation

Alazzabi

Mustafa

Karage

2020

JFC

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Purpose This paper aims to examine the effect of top management support (TMS) and risk management (RM) on the internal audit activities (IAA) and fraud mitigation (FM) in the Libyan banking sector. Design/methodology/approach The data is collected using a survey questionnaire of 16 commercial banks in Libya and analysed using a structural equation modeling. Findings The study shows positive and significant relationships between RM and employees’ FM and TMS and employees’ FM. The study also demonstrates a significant mediating effect on the relationship between RM, TMS and FM. Research limitations/implications The study is conducted in the Libyan banking sector. Further research is needed in other contexts and sectors to understand the contribution of the RM and TMS on FM, including the impact of technology and internal audit characteristics in terms of experience, education and professional certificates on FM. Originality/value The study is the first attempt to explore FM in an emerging economy, particularly Libya, by introducing IAA as a mediator. The study provides implications for regulators and top management in the banking sector.

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Section: Methodsmentioning

confidence: 99%

Section: Internal Audit Activitiesmentioning

confidence: 99%

Risk management, top management support, internal audit activities and fraud mitigation

Alazzabi

Mustafa

Karage

2020

JFC

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“…For example, a procurement policy inside a company is vital to facilitate efficient implementation and address any instances of non-compliance and errors. In the context of fraud prevention, the control environment plays a significant role in local government as a critical determinant for enhancing fraud prevention measures [11,22]. At the same time, the internal environment does affect reducing fraudulent financial reporting [21].…”

Section: Risk Management and Internal Control Impact On Fraud Preventionmentioning

confidence: 99%

Examining government officials’ perceived risk management and internal control in combating fraud in the public sector

Ilias,

Baidi,

Ghani

et al. 2024

2576-8484

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This study aims to examine the perception of risk management and internal control in the public sector, specifically concerning preventing fraud. Specifically, this study examines the various aspects of fraud prevention among employees in the public sector, including goal formulation, internal environment, and communication of information, risk response, monitoring, risk assessment, and control actions. A total of 537 individuals working in the procurement and finance departments of federal ministries participated in a questionnaire survey conducted using the Committee of Sponsoring Organizations framework and focused on fraud prevention. This study shows that risk assessment, control actions, and information and communication exert a favorable influence on the prevention of fraudulent activities. This study revealed that risk assessment, control actions, and information and communication exert a favorable influence on the prevention of fraudulent activities. This study can contribute to the government's efforts in improving risk management, addressing corruption, and advancing the Sustainable Development Goal (SDG) 12 and 16 initiatives.

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“…McNally and Tophoff (2014) view internal controls and RM as two sides of a coin. While ERM concentrates on identifying intimidations and chances, internal controls are intended to successfully withstand against threats coming from taking advantage of opportunities (Bento et al , 2018). Additionally, ERM provides an up-bottom/top-down approach to manage risks focusing on the wider, cross-cutting risks that might affect the entire organisation which requires the attention of executive leadership and must be in their agenda (Bishop and Vitters, 2017).…”

Section: Theoretical Foundationmentioning

confidence: 99%

Conceptualising the interaction among organisational factors towards internal control quality

Alazzabi

Mustafa

Issa

2020

JFC

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Purpose This paper provides a theoretical foundation and conceptual framework to explain the interactions among risk management (RM), top management support (TMS), and internal audit activities (IAA) to achieve internal control quality (ICQ). Design/methodology/approach A review of the extant literature in RM, auditing and management control is conducted to develop and establish theoretical relationships. Findings In this work, interconnectedness among organisational factors is discussed by drawing on contingency theory to provide the theoretical logic and support the conceptual framework. Research limitations/implications Although this work illustrates the significance of the moderation effect of TMS and the mediation effect of IAA to link RM processes with the quality of internal controls, limitations exist, as the study is conceptual and lacks empirical evidence. The paper emphasises education and training on RM and internal audit to address emerging issues and arising challenges in RM and ICQ. Originality/value The paper extends the existing literature in the area of ICQ, which is discussed extensively in developed contexts. However, studies on ICQ in emerging economics, specifically the Middle East and North Africa region, which suffers from high levels of corruption, and asset misappropriation cases are limited. Hence, this work is important because it addresses under-researched issues in relation to ICQ in an attempt to develop a conceptual framework from the available and most effective organisational factors to attain better ICQ.

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Risk Management and Internal Control: A Study of Management Accounting Practice

Cited by 18 publications

References 20 publications

Risk management, top management support, internal audit activities and fraud mitigation

Risk management, top management support, internal audit activities and fraud mitigation

Examining government officials’ perceived risk management and internal control in combating fraud in the public sector

Conceptualising the interaction among organisational factors towards internal control quality

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