Integrated Approach Model of Risk, Control and Auditing of Accounting Information Systems

Brandas, Claudiu; Stirbu, Dan; Didraga, Otniel

doi:10.12948/issn14531305/17.4.2013.08

Cited by 7 publications

(14 citation statements)

References 6 publications

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“…In this respect, we conclude that the impact is positive, on an upward trend for the entire period under observation ranging within the optimal level of capital adequacy. However, factors could also be of interest here such as the socio-economic factors, the rule of law [40], board composition indicators such as gender related indicators [41] or the strategy implemented regarding risk management [42].…”

Section: Impact Of Igc On Performance In the Italian Banking Sectormentioning

confidence: 99%

Assessing the Impact of Corporate Governance Index on Financial Performance in the Romanian and Italian Banking Systems

Benvenuto

Avram

et al. 2021

Sustainability

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Background: Our study aims to verify the impact of corporate governance index on financial performance, namely return on assets (ROA), general liquidity, capital adequacy and size of company expressed as total assets in the banking sector for both a developing and a developed country. In addition, we investigate the interactive effect of corporate governance on a homogenous and a heterogeneous banking system. These two banking systems were chosen in order to assess the impact of corporate governance on two distinct types of banking system: a homogenous one such as the Romanian one and a heterogeneous one such as the Italian one. The two systems are very distinct; the Romanian one is represented by only 34 banks, while the Italian one comprises more than 350 banks. Thus, our research question is how a modification in corporate governance legislation is influencing the two different banking systems. The research implication of our study is whether a modification in legislation, thus in the index of corporate governance, is feasible for two different banking sectors and what the best ways to increase the financial performance of banks are without compromising their resilience. Methods: Using survey data from the Italian and Romanian banking systems over the period 2007–2018, we find that the corporate governance has a significant, positive and long-lasting effect on profitability and capital adequacy in both countries. Results: Taking the size of the company into consideration, the impact of the Index of Corporate Governance (ICG) on a homogenous banking system is positive while the impact on a heterogeneous banking system is negative. Conclusions: Our study provides evidence of the impact of IGC on financial performance and sheds light on the importance of the size of the company. Therefore, one can state that the corporate governance principles applied do not encourage the growth of large banks in heterogeneous banking sectors, thereby suggesting new avenues of research associated with new perspectives.

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Section: Impact Of Igc On Performance In the Italian Banking Sectormentioning

confidence: 99%

Assessing the Impact of Corporate Governance Index on Financial Performance in the Romanian and Italian Banking Systems

Benvenuto

Avram

et al. 2021

Sustainability

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“…This study explores the effect of the tone at the top in weakening the effect of IT controls in preventing unethical behavior. While IT controls are capable of preventing misuse of funds, they are deficient by themselves to create an ethical environment (Brandas et al, 2013). Organizations need to set the right tone at the top to build a culture where ethical decision-making is second nature.…”

Section: Discussionmentioning

confidence: 99%

Why do information system controls fail to prevent unethical behavior?

Sherif

Pitre

Kamara

2016

VJIKMS

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Purpose The purpose of this paper is to examine the ability of enterprise systems and embedded controls to prevent unethical behavior within organizations. Design/methodology/approach The authors use a case study to explore how the configuration of information technology (IT) controls within enterprise systems and their effectiveness in preventing unethical behavior is compromised by the tone at the top. Findings The study highlights the decisive role of cultural values and leadership in moderating the relationship between IT controls and unethical behavior and the realization that ethical environments are socially constructed not enforced. Research limitations/implications The limitation of this research is that the authors conducted one case study in an institution of higher education to refute the theory that IT controls embedded within enterprise systems can prevent unethical, and thus, the results may not be generalizable to other industries. Practical implications An important implication of the research is that the configuration of information system controls is affected by the organizational culture and the ethical values embraced by top management. When the tone at the top does not emphasize the ethical code of conduct, the configuration of IT controls will be compromised leaving organizations vulnerable at all levels. Originality/value Although the authors have a wealth of knowledge on ethics and theories that explain why unethical decision-making continue to surface to the headlines, they have little explanation as to why enterprise systems fail to stop unethical behavior in organizations. This study explores technical, organizational and individual factors that contribute to unethical decision-making.

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“…In another body of literature, Ceran, Gungor and Konya (2016) studied the importance of the accounting information system in preventing the crises that were or will be experienced by businesses, the study revealed that the financial information obtained from the accounting information system is very important for the decision-making process of the businesses, and the accounting information system is protected against the financial crises. Additionally, Brandas, Stirbu and Didraga (2013) aimed to develop and test an integrated approach model of risk, control and auditing of the AIS on three cycles of business processes: purchases, sales and cash in order to improve the efficiency of the IT governance. The study confirmed that there is a medium level of risk for each cycle, and the correlation between risk, control and audit in the management information systems, offers the perception of a stable IT environment for the entity.…”

Section: Independent Variablesmentioning

confidence: 99%

The Relationship between Accounting Information Systems and Making Investment Decisions in the Industrial Companies Listed in the Saudi Stock Market

Alawaqleh¹,

Al-Sohaimat²

2017

IBR

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The study aimed to measure the relationship between the investment decision-making in the industrial companies listed in the Saudi Stock Market with the (IVs) characteristics of the accounting information systems (appropriateness and reliability, comparability and understanding), and renovation and maintenance of the hardware and software. The problem in the Kingdom of Saudi Arabia is that the government depends on oil revenues more than on attracting investments, therefore, the importance of this study is constituted by the provision of critical recommendations to policy makers in the Kingdom of Saudi Arabia in order to overcome this issue and improve the investments. In order to achieve the objectives of this study, questionnaires were administered to 194 people representing the study population; a multiple regression (standard regression) was also used to test the study hypotheses. In general, all variables were positively significantly related with the investment decision-making.The findings of this study also showed that the independent variables explained more than 65% of the variance in investment decision-making. The Saudi government and policy makers should issue new regulations to increase the interest in accounting information systems in order to attract the investment. In relation to the practical and theoretical contribution, this study used new variables in the new model, such as renovation and maintenance of the hardware and software. Furthermore, practical contribution will help policy makers and the Saudi government to advance in this area and implement new policies for investors in order to protect the economy and the society stability due to the war in Yemen and Syria.

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Integrated Approach Model of Risk, Control and Auditing of Accounting Information Systems

Cited by 7 publications

References 6 publications

Assessing the Impact of Corporate Governance Index on Financial Performance in the Romanian and Italian Banking Systems

Assessing the Impact of Corporate Governance Index on Financial Performance in the Romanian and Italian Banking Systems

Why do information system controls fail to prevent unethical behavior?

The Relationship between Accounting Information Systems and Making Investment Decisions in the Industrial Companies Listed in the Saudi Stock Market

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