The effect of applying COSO-ERM model on reducing fraudulent financial reporting of commercial banks in Jordan
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Received May 22, 2018;Accepted June 15, 2018;Published June 25, 2018
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DOIhttp://dx.doi.org/10.21511/bbs.13(2).2018.09
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Article InfoVolume 13 2018, Issue #2, pp. 107-115
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Cited by5 articlesJournal title: Asian Journal of Accounting ResearchArticle title: Risk Management practices and potential fraudulent financial reporting: evidence from MalaysiaDOI: 10.1108/AJAR-01-2022-0017Volume: 9 / Issue: 2 / First page: 116 / Year: 2024Contributors: Marziana Madah Marzuki, Wan Zurina Nik Abdul Majid, Hatinah Abu Bakar, Effiezal Aswadi Abdul Wahab, Zuraidah Mohd SanusiJournal title: Cogent Economics & FinanceArticle title: The effect of enterprise risk management on prevention and detection fraud in Indonesia’s local governmentDOI: 10.1080/23322039.2022.2101222Volume: 10 / Issue: 1 / First page: / Year: 2022Contributors: Tarjo Tarjo, Henryan Vishnu Vidyantha, Alexander Anggono, Rita Yuliana, Siti MusyarofahJournal title: WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICSArticle title: Does Forensic Accounting Matter? Diagnosing Fraud Using the Internal Control System and Big Data on Audit Institutions in IndonesiaDOI: 10.37394/23207.2024.21.53Volume: 21 / Issue: / First page: 638 / Year: 2024Contributors: Enny Susilowati Mardjono, Entot Suhartono, Guruh Taufan HariyadiJournal title: International Journal of Scientific Research and ManagementArticle title: Questionnaire as a Tool for Assessment of Interanal Control System against Coso Internal Control – Integrated FrameworkDOI: 10.18535/ijsrm/v9i11.em06Volume: 9 / Issue: 11 / First page: 2569 / Year: 2021Contributors: Karina Nazarova, Mariia Nezhyva, Konstantin Neviadomski , Polina Kyrushko, Nadiia BondarJournal title: International Journal of Accounting, Finance and Risk ManagementArticle title: Building the Foundation: Towards a Theoretical Framework for Forensic AccountingDOI: 10.11648/j.ijafrm.20240904.12Volume: 9 / Issue: 4 / First page: 131 / Year: 2024Contributors: Aloysius Vutumu
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This study aims to test the effect of applying the model of the Committee Sponsoring Organizations for enterprise risk management (COSO-ERM) on reducing fraudulent financial reporting in commercial banks operating in Jordan. Furthermore, the study identifies the role of each board of directors, audit committee, executive management, human resource management, and internal audit as one of the corporate governance mechanisms in enhancing the effectiveness of internal control systems. The study revealed an impact of applying the Committee of Sponsoring Organizations model for enterprise risk management (COSO-ERM) on preventing fraudulent financial reporting, where it reached influence around 77.8% on the dependent variable (fraudulent financial reporting). The study also found that each of internal control, event identification, risk assessment and response, and control activities variables affects dependent variable (fraudulent financial reporting) in commercial banks operating in Jordan.
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JEL Classification (Paper profile tab)H83, G21, E58, Q52
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References16
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Tables8
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Figures0
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- Table 1. Results of a multiple linear regression analysis to test the main hypothesis (H0)
- Table 2. Results of a simple linear regression analysis to test the first sub-hypothesis (H01)
- Table 3. Results of a simple linear regression analysis to test the second sub-hypothesis (H02)
- Table 4. Results of a simple linear regression analysis to test the third sub-hypothesis (H03)
- Table 5. Results of a simple linear regression analysis to test the fourth sub-hypothesis (H04)
- Table 6. Results of a simple linear regression analysis to test the fifth sub-hypothesis (H05)
- Table 7. Results of a simple linear regression analysis to test the sixth sub-hypothesis (H06)
- Table 8. Results of a simple linear regression analysis to test the seventh sub-hypothesis (H07)
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The effect of internal control environment on the value relevance of earnings
Investment Management and Financial Innovations Volume 16, 2019 Issue #2 pp. 182-194 Views: 1475 Downloads: 238 TO CITE АНОТАЦІЯThis study examines whether a suitable control environment increases the value relevance of earnings by providing greater assurance on the reliability of financial reporting. Specifically, the level of suitable control environment is assessed by considering the quantity and quality of IC personnel, which are closely related to the personnel integrity/ethical values, competence, and authority/responsibility. Using a sample of 1,834 firm-year observations of Korean listed companies covering 2005–2010, the author finds that earnings are more value relevant when the increase in the average work experience of IC personnel is greater. However, no evidence is found that the value relevance of earnings is positively associated with the increase in the proportion of IC personnel. The findings suggest that a suitable control environment, established by deployment of qualified IC personnel with more work experience, improves the IC effectiveness and, thus, provides greater assurance on the reliability of financial reporting to market investors.
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Disclosure level of local government’s financial statements in Indonesia: Role of the internal control system
Rheny Afriana Hanif , Sem Paulus Silalahi , Supriono Supriono , Eka Hariyani , Meilda Wiguna doi: http://dx.doi.org/10.21511/imfi.20(3).2023.02Investment Management and Financial Innovations Volume 20, 2023 Issue #3 pp. 13-21 Views: 508 Downloads: 200 TO CITE АНОТАЦІЯThis study was conducted to examine the factors affecting the level of disclosure of local government financial statements. The study uses the internal control system as a moderating variable. Local government financial reports in Indonesia were the subject of this study’s audit by the Supreme Audit Agency. The number of research samples used was 487 local/city governments in Indonesia for the 2021 period with purposive sampling as a sampling technique. In this study, the Structural Equation Model-Partial Least Square (SEM-PLS) Version 3 data analysis method was employed. Based on the test results, it was found that local government budget expenditures (β = 0.263; p < 0.05) have a significant effect on the level of financial statement disclosure. Meanwhile, financial condition (β = 0.173; p > 0.05) has no significant effect on the level of financial statement disclosures. The internal control system as a moderating variable can moderate the influence of local government budget expenditure (β = 0.263; p < 0.05) on the level of disclosure of financial statements, but cannot moderate the effect of financial condition (β = –0.073; p > 0.05) on the level of disclosure of financial statements. Local governments in Indonesia are expected to be able to further optimize disclosure in accordance with Government Regulations in the future. One of the approaches used by regional governments to execute financial report transparency is the use of information technology to satisfy social expectations more effectively and efficiently.