银行内部控制外文文献翻译

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文献出处：James C. The Study on bank Internal Control[J]. Journal of Banking & Finance, 2017, 2(2): 377-386. 原文

The Study on bank Internal Control

James C

1. Introduction

An effective internal control system is the nerve centre of every organization, the breakdown of which leads to the failure of organizations. Internal control is a crucial aspect of an organization s governance system and ability to manage risk. It ensures the achievement of organizations objectives and creating, enhancing, and protecting stakeholder value (IFAC, 2012). Precipitating the current global financial crises is the high profile corporate failures such as Enron and WorldCom in the USA, Parmalat in Europe, and similar cases of corporate collapse around the world (Amudo & Inanga, 2009). Failure of internal control systems and the eventual circumvention of internal controls by company executives accounted for these corporate scandals. Organisations must ensure that their internal control systems remain relevant in today s business model. 2. Theory and related literature Definition of internal control system

COSO in 1992, defined internal controls as a process, and rightly so because an internal control system is not an end in itself but a means to an end. Internal control is defined as a “process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: Effectiveness and efficiency of operations, Reliability of financial reporting, Compliance with applicable laws and regulations” (COSO, Internal Control-Integrated Framework, 1992). Again the Basel committee on banking supervision defined internal controls “as a process effected by board of directors, senior management and all levels of personnel. It is not solely a procedure or policy that is performed at a certain point in time, but rather it is continually operating at all levels within the bank” (Basel, 1998). Internal control systems effectiveness

The effectiveness of an internal control system is dependent on how fluid the system interact with itself and how embedded it is into the organizations business processes. Again for an internal control system to be effective and provide that needed assurance to the board, there should be some “agents of effectiveness”. These are a vibrant board, which does not wait to be informed but a board that understands the business and questions the status quo, and an effective, independent internal audit unit. Internal control is a process, but its effectiveness is a state or a condition

at point of the process. Therefore it is important for management and the board to evaluate and assess the effectiveness of the internal control system periodically.

According to COSO, an internal control system can be judged to effective on the high level if the board of directors and management have reasonable assurance that: 1. they understand the extent to which the entity s operations objectives are being achieved, 2. published financial statements are being prepared reliably, and 3. applicable laws and regulations are being complied with (COSO, Internal Control-Integrated Framework, 1992). An internal control framework that places too much emphasis on detailed explanation of the different components of the system and methods for their design but ignore details on how each of the components can be measured to assess their effectiveness is a deficient control system in itself (Amudo & Inanga, 2009).

The effectiveness of an internal control system is a function of the workings of the five components of the system. Consequently, assessing effectiveness of internal controls must be done in relation to the components of internal control. Judging whether an internal control system of an organization is effective or not is a subjective verdict resulting from the assessment of the workings of the five components of internal control system across the entire organization (COSO, Internal Control -Integrated Framework, 2011).

In assessing internal control effectiveness, the evaluator must understand the operations of the five components, the intent of the principles and assumptions underlying the operations of the control components and how they are applied across the organization. The researchers in assessing the effectiveness of the internal control system of Ghanaian banks, adopts COSOs 1992 principles and assumptions of assessing the effectiveness of internal control systems. 3. Methodology

Data for the study was gathered from questionnaires administered to managers (including audit managers) of all banks in Ghana. A total of 56 questionnaires were sent out and 30 were received representing response rate of about 54 percent. The questionnaire was divided in to two main sections representing the two control components (control environment and monitoring) of the COSO model chosen for the study. The study targeted managers because, the questions required a good understanding of the internal control system of banks.Responses received from respondents were based on a five (5) point likert scale, ranging from strongly disagree to strongly agree, where 1 represented strongly disagree (SD) and 5 represented strongly agree (SA) . The likert scale was used to measure respondent s knowledge and perception of internal controls and the bank s internal control system effectiveness. A likert scale was used because it is easy to read and complete by participants.Statistical Package

for Social Sciences (SPSS) was used to analyse data and presented in the form of means and standard deviations for each question and each category or section of the questionnaire. Cronbach s alpha was also computed to test internal consistency for each section of the questionnaire. The Cronbanch s alpha for control environment and monitoring are as follows; 0.823 and 0.720 respectively. A Cronbach s alpha of 0.7 is generally accepted, however other researchers consider a 0.6 and above reliability adequate enough (Field, 2000).

The rationale for the choice of the two control components is basically; to manage the scope of the research and again we believe that gaining an understanding of the control environment component and the monitoring activities component of the internal control system will give an indication of the general effectiveness of the whole system. 4. Results and discussions

The study sought to assess the effectiveness of the control environment in Ghanaian banks as shown in Table 1. The results showed that the statement that top managements support for integrity and ethical values and codified standards of conduct to guide behaviour, activities and decisions both had the highest mean (M = 4.83). This was followed by organisations hold individuals accountable for their internal control responsibilities in the pursuit of objectives (M = 4.76; SD = 0.64); which reported the second highest score. It was further evident that

the statements that management establishes with, board oversight, structures, reporting lines and appropriate authorities and responsibilities in the pursuit of objectives and human resource function has helped to define competence and staffing levels by job roles, facilitating training and development both had same mean score of 4.69 (SD =0.60). It must be emphasised that all the items reported under the control environment had mean scores more than 3.50. This means that the majority of the respondents were of the view that the control environment component of the internal control systems is effective. The overall control environment score was 4.66 (SD = 0.62). Overall, the results indicated that the majority of the respondents agreed that the control environment component of banks is effective in the Ghanaian banking industry. The effectiveness of the control environments was evident in the top managements support for integrity and ethical values; the establishment of codified standards of conduct to guide behaviour, activities and decisions; holding individuals accountable for their internal control responsibilities in the pursuit of objectives. The attitude of the board and senior management determines the level of internal control effectiveness in an organisaton. If top management believes that control is important, others in the organisation will sense that and respond by observing the established controls. Similarly, establishing support for the integrity and ethical values are essential elements of the control environment as they

affect the design, administration and monitoring of other internal control components (Arens & Loebbecke, 1997). The results demonstrated that management of the banks have shown strong commitment in promoting internal control environments that is strong enough to receive the support of top management, establish standards and responsibilities, as well as hold people accountable for their successes and failures. The cornerstone of a strong and effective internal control structure is the control environment. Hence, the existing effectiveness of the control environment suggests that the internal control system is very effective in establishing strong internal control structures necessary for preventing material frauds in the banks (Apostolou & Jeffords, 1990). This result is consistent with an inter industry comparative study of internal controls conducted in the USA in 2012, where banking effectiveness for control environment was rated high with mean of over 5.0 on a seven point likert scale (Hermanson, Smith, & Stephens, 2012).

The evaluation of the effectiveness of monitoring activities as component of the internal control systems of the banks in preventing material fraud are presented in Table 2. The results showed that the mean scores for all the items were more than 4.00 and ranges from 4.52 (SD = 0.63) to 4.90 (SD = 0.31). The existence of independent internal audit unit that objectively evaluates the entity s control system and feedback to management on the functioning of the internal control reported the

highest mean score (M = 4.90; SD = 0.31). Management periodically engages external evaluators to objectively evaluate the control system and report to management on the functioning of other components of the control system had the second highest mean of (M = 4.83; SD = 0.47). There is also evidence that management tracts whether deficiencies are remediated on a timely manner (M = 4.76; SD = 0.44). The mean score for the monitoring activities was 4.72 (SD = 0.49). A control system has to be monitored to ensure that it operates effectively. The results showed that the majority of the respondents were of the view that the existing monitoring activities of the internal control systems were effective in Ghanaian banks. The results indicated that the existing monitoring activities of the banks are focused on independent internal audit unit that objectively evaluates the banks control system; periodically engages external evaluators to objectively evaluate the control system; and managements ability to track whether deficiencies are remediated on a timely manner. It can be inferred that the banks have adopted aggressive mechanisms for assessing the quality of the internal control system's performance over time, which includes ongoing monitoring activities, separate evaluations or a combination of the two (INTOSAI, 2004). 5. Conclusions and recommendations

This study has contributed to advance the knowledge of internal control effectiveness in the banking industry in Africa. To regulators and

practitioners, the research has brought to bear the perceived strength of internal controls in the Ghanaian banking industry using the 1992 COSO framework. Internal and external auditors can pay detailed attention to the risk assessment, control activities, and information and communication components of the internal control system of banks in Ghana, without losing sight of the control environment and monitoring activities either. The study has added to the little research on internal control effectiveness of the banking sector in Ghana, and we hope that other researches will leverage on this study and extend further the effectiveness of internal controls of banking organizations in Africa.

The study results indicate that, strong controls exist in the control environment and monitoring activities components of the internal control systems of banks in Ghana. The two components were highly rated by respondents with average means of 4.72 and 4.66 respectively. The study particularly revealed a very strong tone at the top, indicating the board of directors commitment to integrity and ethical values. This is in the right direction in curbing what Roger Steare called a \deficit in ethical values\

译文

银行内部控制研究

James C

1引言

一个有效的内部控制系统是每个组织的神经中枢，也是导致组织崩溃失败的关键性因素。一个组织的内部控制是组织的治理体系和管理风险能力的一个至关重要的方面。它可以确保实现组织的目标，以及建立、加强并保护利益相关者的利益。(IFAC,2012)。引发当前全球金融危机，其很大的原因就是美国安然和世通，欧洲的帕玛拉特等知名企业的破产，以及世界各地其他国家的企业破产案件(阿姆朵和伊那喀，2009)。失败的内部控制制度和内部控制系统会最终导致整个企业的崩溃，但是公司高管都在规避这些公司丑闻。因此，组织必须确保他们的内部控制系统符合当今的商业模式。 2理论和相关文献 内部控制系统的定义

1992年COSO将内部控制定义为一个过程，理当如此，因为一个内部控制系统本身并不是目标，而是达到目的的一种手段。内部控制的定义为“由一个实体的董事会、管理层和其他人员设计提供的合理地保证目标实现的一个过程。主要内在属性包括以下几个方面:操作的有效性和效率、财务报告的可靠性、遵守适用的法律和法规 (COSO，内部控制整合框架，1992)。再次，巴塞尔银行监管委员会对内部控制的定义为： 它是一个过程，会影响到董事会、高级管理层和各级人员的决策和日常工作活活动。它不只是一个在某个时间点上执行的过程或政策，也是包含在银行运作过程的始终（巴塞尔，1998）。(完整译文请到百度文库)

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