Analysis of the concept of internal control system is an important subject that involves the analysis of the latest scientific results, and on its basis to perform an updated analysis of the concept of internal control system which meets the modern business conditions and tendencies. Such an assumption has been made upon exploring famous scientists' concepts of internal control system, in which the basic values needed for internal control system: (honesty, trust, respect, openness, skills, courage, economy, initiative, etc.) were not included. Only a modern concept of internal control might ensure an effective internal control system.The main purpose of the authors was to explore control, the concepts and conceptions of control, internal control and the system of internal control, as well as to present their own idea of the concept of internal control system and to compile a structural scheme of their conception. The structural scheme may alleviate the process of compiling a new model of an effective internal control system. The structural scheme of the conception may also be used in compiling a model of internal control system in different branches of industry.
Straipsnyje nagrinėjamos finansinių ataskaitų klastojimo ir apgaulės sąvokos, klastojimo tikslai ir aplinkybės, kurios gali išprovokuoti finansinių ataskaitų klastojimą. Analizuojama informacija apie finansinių ataskaitų klastojimą Lietuvoje ir kitose šalyse, sisteminami klastojimo motyvai, priemonės ir požymiai. Nagrinėjami galimi finansinių ataskaitų klastojimo padariniai ir taikomos priemonės, kovojant su šiuo reiškiniu, jų veiksmingumas.
Companies are exposed to various risks. Failure to identify and eliminate them may aggravate the development of companies, some of which may be forced to cease operation. Audit can help in revealing the majority of risks. The auditor has an unlimited access to the information, operational strategy, and in some cases even to commercial secrets, of the auditee. Auditor collects a large amount of different information about the company, but it is used only as much as necessary for formulating a conclusion about financial statements. Upon a closer cooperation of the auditor with the persons in charge of the governance of the audited entity, the client needs can be identified and, once the audit plan is slightly revised, the areas that are within the interest of the client can be analysed in more detail. This article aims to investigate the determination of performance materiality in audit to separate classes of transactions based on the principal areas of importance identified by the business undergoing audit. Based on the data collected during the study, a modified model for determining performance materiality in audit was created which can help to identify better the current and potential risks of the distinguished areas. The application of this model enables carrying out an audit in the areas which are of the highest importance to the users of the audit results more effectively and providing them with more detailed information in the management letter. This would help to identify the substantial risks of the auditee in more detail and on time.
Straipsnyje nagrinėjami išorės ir vidaus veiksniai, kurie gal turėti įtakos informacijai apie įmonės finansinę būklę ir veiklos rezultatus iškraipyti. Apžvelgiami duomenų apie turtą, įsipareigojimus, pajamas, sąnaudas, pelną iškraipymo būdai. Išryškinama infliacijos įtaka pateiktų duomenų objektyvumui ir tyčinio duomenų iškraipymo pavojai.Remiantis duomenimis apie Lietuvoje tiriamų baudžiamųjų bylų pobūdį, Finansinių nusikaltimų tyrimo tarnybos darbo ataskaitomis ir bankrotų statistika mėginama įvertinti nagrinėjamos problemos mastą ir padarinius.Pagrindiniai žodžiai: finansinės ataskaitos, ekonominė informacija, informacija apie įmonę, informacijos iškraipymas, įsipareigojimai, pajamos, sąnaudos, pelnas, iškraipymo būdai.Ways and consequences of information fraud about an enterpriseVaclovas Lakis SummaryIn today’s global world, every legal entity is entitled to get a reliable information about other companies if their relationship is based on finance, production, cooperation, trade, etc. Usually, everybody believes that the situation in the company they are interested in will be under constant improvement and will never get worse. However, in the real world, a company’s financial status and its performance results for different reasons can fluctuate. In turn, such negative consequences can influence a company’s performance and make a negative impact on managers, because investors, creditors and partners hardly tolerate them. Companies experiencing a constant pressure try in permissible ways to depict the company’s activity as being stable and reliable. This is done using permissible standards but an inappropriate combination of means which distort the company’s performance and financial state. Moreover, sometimes information is mispresented and distorted to such extent that a correct information about the company’s assets and activity is impossible.Conscious distortions are most dangerous for legal entities when documents are a fraud, the enterprise’s performance and activities undergo distortion too, and registered data presented in financial statements and accountancy do not depict the real situation.The value of a company’s assets and liabilities provides good possibilities to cover all the debts owed to creditors and to continue the company’s performance. The value of fixed assets can be distorted, if the depreciation was not estimated at all or the calculation was done wrongly.In accountancy, if the depreciation value is presented as being smaller, it means that the cost price decreases and the profit increases. Sometimes, because of the maintenance and reconstruction of the fixed assets, their quality did not improve, or the usage did not prolong; it means that the expenses increase the cost price of the current period. In order to improve the company’s image, the value of fixed assets is increased by the amount of incurred expenses. It means that in a certain period of time the profit increases and in other periods decreases without a real ground because of the increased depreciation of assets. There are cases when fixed assets must be adjusted. If this is not done, the information about the company’s performance is incorrect.Company’s liabilities can be concealed if the classification does not correspond to a true picture, if the invoices and guarantees are not provided, if the real debt value is not given and can increase because of interest or fine. The amount of revenue and expenditure makes an impact on the company’s profit, so the company tries to show an increase of revenues and a decrease of expenditure. Consequently, if the company wants to show a decrease of profit, the situation is inverse. The amount of revenues can be distorted by manipulating with the company’s transactions.The amount of expenditure is decreased intentionally either directly or indirectly changing the terms of time. Moreover, profit can be distorted too, if transactions with other companies do not depict the real picture; as a result, the price of fixed and current assets is much bigger than the market price. The assets acquired by the third party are sold at the market price, i.e. experiencing great losses. If the financial statements depicting the value of assets which are bought and sold are consolidated, the following step is elimination of transactions from the consolidated financial statements of different enterprises.Using the distorted information about a company, other legal and physical entities make erroneous decisions. Losses due to such decisions made on the basis of distorted financial statements are very big. Very often such distortions lead to bankruptcies. In the period from 1993 to 2007, the value of the companies that underwent or were on the verge of bankruptcy was 6421,42 million Lt and the debt to creditors 9216,80 million Lt.
Abstract. Different countries of the world face some misunderstandings or even scandals concerning the inappropriate information about financial problems in different companies, which, in its turn, decreases society's confidence in independent auditing and encourages discussions on the role of auditing in economy. EU, international trade unions, governments make great efforts to improve the quality of independent auditing. The article investigates the functions of auditors, factors influencing the auditing state, the reasons for fraud of financial statements, motives and means, the efforts of international organizations and governments to improve the auditing quality and unsolved auditing problems.
Veiklos auditas yra labai svarbi priemonė užtikrinant tinkamą kiekvienos valstybės viešojo sektoriaus funkcionavimą ir valstybės lėšų bei turto naudojimą. Galutinis veiklos audito dokumentas yra ataskaita, kurioje pateikiamos audito rekomendacijos. Jose nurodomi nustatytų klaidų ir trūkumų šalinimo būdai. Rekomendacijų įgyvendinimas yra vienas iš svarbiausių audito rezultatyvumo matavimo rodiklių.Straipsnio tikslas yra ištirti valstybinio audito rekomendacijų pobūdį ir jų įgyvendinimo problemas. Straipsnyje nagrinėjama veiklos audito mastas ir metodai, rekomendacijų samprata ir svarba, veiklos audito metu atskleisti trūkumai, pateiktų rekomendacijų pobūdis ir jų įgyvendinimo problemos.Pagrindiniai žodžiai: veiklos auditas, rekomendacijos, stebėsena.The significance of recommendations in ensuring the results of performance audit in public sectorVaclovas Lakis, Jurga Nemanytė SummaryEvery country, in order to finance public sector allocates much finances (funds). Performance audit evaluates it from the point of view of efficiency and effectiveness, which is performed by high level auditing institutions. The most risky areas of public sector are analyzed during the process of auditing. Therefore, in the process of research (investigation) the conclusions and the connection with the submitted recommendations were analyzed for the period of 2008–2012. There were defined 11 mistakes and several groups of shortcomings. Many shortcomings are related with public administration, not properly regulated certain processes or institutional performance, the determined regulations are not followed, the performance lacks control, the funds (finances) are not effectively used, the co-operation is rather negligible.Some mistakes and shortcomings appear systematically, which implicate, that the entities under auditing and governmental institutions do not pay proper attention to implementation of recommendations presented by performance auditors. Hence, having produced performance auditing, the highest audit institution provides recommendations to the entity under auditing, how to eliminate identified shortcomings and what measures should be taken in order to avoid the occurrence of such shortcomings in the future. In literature and auditing manuals it is stated, that the audited entity makes a decision on how to implement the recommendations. However, this opinion is not completely correct. It should not be assumed, that such institutions which undergo recommendations of auditing can decide on their own whether to follow these recommendations or not. Therefore, if it depended on the decision made by the entity under auditing the post-auditing activity would loosen its importance and performance would depend on the quality of recommendations.Moreover, the auditors must be very prudent in formulating recommendations; much more attention should be paid to the steps which have to be taken, but not to the process of doing it. According to each performance auditing result several recommendations can be provided to different institutions. During the period 2008–2012 – 964 recommendations were presented to different institutions. The greatest number of recommendations was addressed to the Government and other ministries. They are related with the necessity of changing regulations. According to the data presented by state control, 92% of presented recommendations were implemented. In fact, audited entities agree with the presented recommendations and seek to implement them. However, when the audited entities disagree with the provided recommendations they usually state, that recommendations are not relevant and the process of implementation is rather complicated. Therefore, the performance auditors should co-operate with audited entities in order to put into practice the recommendations, otherwise some unforeseen difficulties may occur.an>
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