The Role of the Risk Management and of the Activities of Internal Control in Supplying useful Information through the Accounting and Fiscal Reports

Internal Control, Manager’s Competency, Management Accounting Information Systems and Good Corporate Governance: Evidence from Rural Banks in Indonesia

“…The results of this study show that the effectiveness of internal controls does not affect the quality of MAIS. This is different from the results of the research by Napitupulu et al (2016), and Danescu et al (2012) which show that there is a significant influence of the effectiveness of internal controls on the quality of MAIS. The internal control did not affect the quality of MAIS, because of the kinship orientation in rural banks, and so the role of internal control should be improved.…”

“…In addition to manager’s competency, control of information systems is also needed to ensure that all relevant economic events are captured by the accounting information system and that the process of changing and summarizing financial information does not show errors (Hayes et al, 2005, p. 250). This is consistent with the results of a study by Danescu et al (2012) which states that the guarantee of the functioning of information systems at the organizational level and at every activity is determined by the existence of adequate internal control. Control is carried out for operations or processes carried out within the company, as well as in receiving benefits from information so that it can be felt to be true in accordance with the economic realities presented.…”

“…Control is needed to ensure that all relevant economic events are captured by MAIS and that the process of changing and summarizing financial information does not show errors (Hayes et al, 2005, p. 250). This is in accordance with the results of the study of Danescu et al (2012) which states that the guarantee of the functioning of an information system is determined by the existence of adequate internal controls, both at the level of the business entity and at the level of each activity, operation, or process carried out, and in receiving benefits from information so that it can be felt right in accordance with the economic reality presented. This is in line with COSO’s internal control framework which emphasizes the importance of maintaining information and support systems in accordance with the needs of the company as a whole, so that internal controls are able to integrate information systems automatically with other operations.…”

“…This condition has proven that to guarantee the function of an information system, adequate internal control is needed, both at the level of the business entity and at the level of each activity and operation performed (Danescu et al, 2012). Effective internal control can also control the risk in financial institutions, especially in banking (Mohanad & Audeh, 2013).…”

The Internal Control of Management Accounting Information Systems of the State-Owned Enterprises in Indonesia

“…The research result Danescu et al (2012) proved that to guarantee the function of a MAIS, is determined by the presence of adequate internal controls, both at the level of business entities as well as at the level of each of the activities, operations or processes carried out, as well as the acceptance of the benefits of information In order to be perceived completely in accordance with the economic reality presented. While in support of the general objectives of COSO's internal controls relating to financial reporting, Abbas & Iqbal (2012) find the importance of internal control systems help organizations reduce operational risk and improve the reliability of financial reporting to build shareholder confidence.…”