He further noted that much as internal controls are often thought to be the domain of accountants and auditors; it is actually management that has primary responsibility for proper controls. A critical element of any comprehensive Internal Control Systems is regular monitoring of the effectiveness of internal controls to determine whether they are well designed and functioning properly. Internal control keeps an organization on course toward its mission and the achievement of its objectives. Internal control promotes effectiveness and efficiency of operations, reduces the risk of asset
An evaluation of the key factors needed to gain the commitment of internal and external stakeholders when communicating vision Since stakeholders are the individuals and groups who can affect and are affected by the strategy outcomes; and who have enforceable claims on the firm 's performance, their support to the business firm, together with their expectations from it, are important part of success of strategic management processes of the organisation. It therefore rests upon the organisation to honour their support and to make a significant effort in fulfilling their needs and expectations. External stakeholders constitute customers, suppliers, unions, mass media, bankers, creditors, and local communities while internal stakeholders constitute
It helps towards achieving corporate goals by bringing a systematic approach for the evaluation and improvement of risk management, control governance and compliance processes (Bunget et al., 2009). It discharges its responsibility by assuring the board and management of the adequacy, effectiveness and reliability of the internal control systems which allow the organization to manage risk more effectively (KPMG, 2004). By reviewing and evaluating the effectiveness of corporate controls, internal audit per se, serves as a crucial managerial control device, that is directly linked to the organizational structure and the common rules of the organization. Internal auditors, hence, form integral parts of an efficient corporate governance framework whereby their expertise in control contributes principally to the integrity and reliability of financial reports (Cai, 1997). It ensures integrity and accountability of management through regular review and evaluation of the organization’s code of conduct and their commitment to ethics (Drogalas et al., 2010).
Strategic Management Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company 's top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. Strategy is defined as "the determination of the basic long-term goals of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals. "Strategies are established to set direction, focus effort, define or clarify the organization, and provide consistency or guidance in response to the environment. Strategic management involves the related concepts of strategic planning and strategic
The controls should be standardized, actualized, assessed, and enhanced if needed, to guarantee that the particular security and the goals of the organization are achieved. Therefore, information security works as an empowering agent and prevents the risk to come. The connection between private and public networks as well as the sharing of data resources are rapidly increasing and difficult to control. Numerous information systems have essentially not been intended to be secure and the security is limited. Accordingly, those frameworks must be upheld by suitable management and techniques.
Goal setting is a proven way to help organizations accomplish their main objectives and missions. Goals have a pervasive influence on employee behavior and performance in organizations and management practice (Locke & Latham). As seen in any situation, there is an important relationship between goals and performance. Many modern organization has some form of goal setting in operation. Programs such as management by objectives (MBO), high-performance work practices (HPWPs), management information systems (MIS), include the development of specific goals.
The factors of CG may affect evaluation level of inherent and control risks throughout situation and extent of audit work. It plays independently roles within an organization which provided a global assurance to their board and senior management towards effectiveness corporate governance in internal control process. It helps to ensure processes of organizational effectively controlled and risk procedures are efficiently being identified and monitored, well organized. For Competence, the internal audit need to update their information year by year before perform a tasks must be an independence, knowledgeable, skills and values, ethics and good attitudes. The auditor must understand audit process/policies, quality of report or
The purpose of an audit is to enhance the credibility of financial statements by providing written reasonable assurance from independent sources that the financial statements present a true and fair view in accordance with the accounting standards. This objective will not be met if users of the audit report believe that the auditor may have been influenced by other parties, more specifically the enterprise managers/directors or by conflicting interests (A.O.Oladipupo, F.I.O. Izedonmi, 2013) There are three main ways in which the auditor‘s independence can manifest itself: Programming independence, investigative independence and reporting