SOX Disclosure and the Effect of Internal Controls on Executive Compensation

Paletta, Angelo; Alimehmeti, Genc

doi:10.1177/0148558x16630445

Cited by 16 publications

(9 citation statements)

References 75 publications

(82 reference statements)

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“…Only after the red flags of a credit check [29] being improved, that the credit management module would release the on-hold shipments and re-validate the credit record in the customer master file database(as shown in Figure 2). In compliance with SOX [1], [24]- [28], the credit limit of a certain customer used to be managed and controlled by manual comprehensive evaluation of customer's fundamental performance in specific aspects. Nevertheless, the current Oracle ERP Accounts Receivable (AR) module could support automatic and systematic credit management, which the case company failed to launch, between aging receivables from customers and on-hold shipments to customers.…”

Section: ) Credit Managementmentioning

confidence: 99%

An Effective Digital System for Intelligent Financial Environments

Zhang

Chen

et al. 2019

IEEE Access

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A good set of the financial system could take care of all accounting entries and their impacts on the whole intelligent financial environment. The total flow of money and total expenditures will be reflected here. The intelligent financial system can improve the utilization of data, increase the work efficiency of financial personnel, and increase the security of financial processing services. This system could help the managers make their important financial decisions, financial budgeting, and so on. They can know about the financial conditions at any time. Based on the collection and processing of financial data, we design and analyze the related financial system to carry out the intelligent property of the financial environments. The system extends the quality of financial reporting, SOX compliance, and internal controls in a financial system, including credit management, revenue recognition, bad debts allowance. Once there is an early warning in the financial system, our proposed enhanced system could give a fast early response, and bridge a positive linkage about the planning department, finance department, and top managers, which could avoid potential exposure to bad debts. This system guarantees that the credible customers are selected, and avoid the potential risk of bad debts are incurred by a loose credit limit. It strengthens the preventive control over aging receivables management and detects the potential risk of bad debts in the earlier system alert.

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Section: ) Credit Managementmentioning

confidence: 99%

An Effective Digital System for Intelligent Financial Environments

Zhang

Chen

et al. 2019

IEEE Access

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“…Referring to the benefits generated by the disclosure of the internal control systems, effective and efficient implementation are non-negotiable. Paletta and Alimehmeti (2016) argued that providing compensation to the CEO and CFO does not guarantee the effectiveness of the internal control system. Instead, it can create good corporate governance practices.…”

Section: Literature Reviewmentioning

confidence: 99%

Exploration Disclosures of Internal Control as the Impact of Earnings Quality and Audit Committee

Pangaribuan

Donni²,

Popoola

et al. 2019

IPJAF

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Information disclosure carried out by management as an appointed agent is increasing in importance and hence, a source of concerns to users. It is widely believed that information received by the stakeholders should be appropriate and sufficient for useful decision making, especially in the era of the Fourth industrial revolution. An appropriate and sufficient disclosure in the Annual report indicates a reflection of the effective implementation of the company's operational, strategic, financial and compliance objectives that have been carried out by the management. This study employed secondary data obtained from the annual report for the banks listed in the Indonesia Stock Exchange (IDX). The data for internal control disclosure was observed through a content analysis approach by calculating the internal control system index obtained in the annual report. This study has shown that companies with high earnings quality report more openly convey the application of internal controls system disclosure. This study demonstrated that company with the high characteristics of the audit committee would significantly increase disclosure of internal controls system than a company without audit committee. Supervision, as one of the internal controls established by the management, enhances the performances of the audit committee in ensuring compliance through full disclosure of the financial statements. Thus, restoring users’ trust and confidence in making informed and useful decisions on information emanating from the management.

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“…According to the SOX act (Paletta & Alimehmeti, 2018), which defines specialized requirements for companies whose shares are traded on international stock exchanges, an important determinant of effective management and compliance with internal policies and procedures is the monitoring and testing of the internal control system. One of the key benefits of SOX audit is protecting the interests of investors by confirming the reliability of the control environment of the enterprise where the funds are invested.…”

Section: Introductionmentioning

confidence: 99%

“…Among the world's most popular corporate fraud protection measures, there are an internal audit system (Boskou, Kirkos, & Spathis, 2019) and an internal control system (Oussii & Boulila Taktak, 2018;Paletta & Alimehmeti, 2018) whose work mechanism needs to be continuously improved. The internal audit is perceived as a process, effected by employers and employees in order to provide the achievement of objectives relating to appropriate reporting and maintaining financial control (Boskou et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Preventional Audit: Implementation of Sox Control to Prevent Fraud

Назарова

Mysiuk

Gordopolov

et al. 2020

Business: Theory and Practice

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The Euro-integration vector of Ukraine economic development and business in the open economy zone expands the economic and social potential of domestic enterprises and requires the formation of a reliable information environment to ensure the corporate interests of their investors (in the first) and other users of information (in particular). Today, corporate fraud is the most widespread form of economic crime in Ukraine and the world, which affects about 48% of domestic enterprises. The study attracted substantiated attention to the negative tendency towards the growth of economic crime in Ukraine, which in the end focuses on the fact that domestic business should apply a set of measures to withdraw part of the business from the “shadow economy”. As a result, such measures will help increase the attractiveness of Ukraine’s business investment. The study systematized and analyzed the progressive experience of developed countries, in the first place, the United States, in the fight against economic fraud. The study provides all grounds for asserting that it is quite feasible to achieve the tangible reduction of economic (financial) fraud with preventive measures (which is rather quick and effective). It is proved that the lack of aspirations of the enterprise management to overcome fraud leads to the formation of new money laundering schemes, and not control mechanisms – prevention of opportunities for committing fraud.

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SOX Disclosure and the Effect of Internal Controls on Executive Compensation

Cited by 16 publications

References 75 publications

An Effective Digital System for Intelligent Financial Environments

An Effective Digital System for Intelligent Financial Environments

Exploration Disclosures of Internal Control as the Impact of Earnings Quality and Audit Committee

Preventional Audit: Implementation of Sox Control to Prevent Fraud

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