外文参考资料及译文译文内部控制透视.doc

毕 业 设 计（论 文）外 文 参 考 资 料 及 译 文译文题目： 内部控制透视：理论与概念 说明：要求学生结合毕业设计（论文）课题参阅一篇以上的外文资料，并翻译至少一万印刷符（或译出3千汉字）以上的译文。译文原则上要求打印（如手写，一律用400字方格稿纸书写），连同学校提供的统一封面及英文原文装订，于毕业设计（论文）工作开始后2周内完成，作为成绩考核的一部分。A Clear Look at Internal Controls: Theory and ConceptsHammed Arad (Philae)Department of accounting, Islamic Azad University, Hamadan, IranBarak Jamshedy NavidFaculty Member of Islamic Azad University, Kerman-shah, Iran From：Reserarch Paper,July 2009.Social Science Research NetworkAbstractInternal control is an accounting procedure or system designed to promote efficiency or assure the implementation of a policy or safeguard assets or avoid fraud and error. Internal Control is a major part of managing an organization. It comprises the plans, methods, and procedures used to meet missions, goals, and objectives and, in doing so, support performance-based management. Internal Control which is equal with management control helps managers achieve desired results through effective stewardship of resources. Internal controls should reduce the risks associated with undetected errors or irregularities,but designing and establishing effective internal controls is not a simple task and cannot be accomplished through a short set of quick fixes. In this paper the concepts of internal controls and different aspects of internal controls are discussed.Keywords:Internal Control,Management Controls,Control Environment, Control Activities, Monitoring.1. IntroductionThe necessity of control in new variable business environment is not latent for any person and management as a response factor for stockholders and another should implement a great control over his/her organization. Control is the activity of managing or exerting control over something.The emergence and development of systematic thoughts in recent decade required a new attention to business resource and control over this wealth.One of the hot topic a bout controls over business resource is analyzing the cost-benefit of each control.Internal Controls serve as the first line of defense in safeguarding assets and preventing and detecting errors and fraud. We can say Internal control is a whole system of controls financial and otherwise,established by the management for the smooth running of business; it includes internal cheek, internal audit and other forms of controls.2.COSO describe Internal Control as follow Internal controls are the methods employed to help ensure the achievement of an objective. In accounting and organizational theory, Internal control is defined as a process effected by an organizations structure, work and authority flows, people and management information systems, designed to help the organization accomplish specific goals or objectives. It is a means by which an organizations resources are directed, monitored, and measured. It plays an important role in preventing and detecting fraud and protecting the organizations resources, both physical (e.g., machinery and property) and intangible (e.g., reputation or intellectual property such as trademarks). At the organizational level, internal control objectives relate to the reliability of financial reporting, timely feedback on the achievement of operational or strategic goals, and compliance with laws and regulations. At the specific transaction level, internal control refers to the actions taken to achieve a specific objective (e.g., how to ensure the organizations payments to third parties are for valid services rendered.) Internal control procedures reduce process variation, leading to more predictable outcomes. Internal controls within business entities are called also business controls. They are tools used by managers everyday.* Writing procedures to encourage compliance,locking your office to discourage theft,and reviewing your monthly statement of account to verify transactions are common internal controls employed to achieve specific objectives.All managers use internal controls to help assure that their units operate according to plan,and the methods they use-policies, procedures,organizational design,and physical barriers-constitute.Internal control is a combination of the following：(1). Financial controls(2). Other controlsAccording to the institute of chartered accountants of India internal control is the plan of organization and all the methods and procedures adopted by the management of an entity to assist in achieving management objective of ensuring as far as possible the orderly and efficient conduct of its business including adherence to management policies, the safe guarding of assets prevention and detection of frauds and error the accuracy and completeness of the accounting records and timely preparation of reliable financial information,the system of internal control extends beyond those matters which relate to the function of accounting system. In other words internal control system of controls lay down by the management for the smooth running of the business for the accomplishment of its objects. These controls can be divided in two parts i.e. financial control and other controls.3.Financial controls:(1) Controls for recording accounting transactions properly.(2)Controls for proper safe guarding company assets like cash stock bank debtor etc(3) Early detection and prevention of errors and frauds. (4)Properly and timely preparation of financial records like balance sheet and profit and loss account.(5) To maximize profit and minimize cost.4.Other controls: Other controls include the following:(1)Quality controls.(2)Control over raw materials.(3)Control over finished products.(4)Marketing control, etc5. Parties responsible for and affected by internal controlWhile all of an organizations people are an integral part of internal control, certain parties merit special mention. These include management, the board of directors (including the audit committee), internal auditors, and external auditors.The primary responsibility for the development and maintenance of internal control rests with an organizations management. With increased significance placed on the control environment, the focus of internal control has changed from policies and procedures to an overriding philosophy and operating style within the organization. Emphasis on these intangible aspects highlights the importance of top managements involvement in the internal control system. If internal control is not a priority for management, then it will not be one for people within the organization either.As an indication of managements responsibility, top management at a publicly owned organization will include in the organizations annual financial report to the shareholders a statement indicating that management has established a system of internal control that management believes is effective. The statement may also provide specific details about the organizations internal control system.Internal control must be evaluated in order to provide management with some assurance regarding its effectiveness. Internal control evaluation involves everything management does to control the organization in the effort to achieve its objectives. Internal control would be judged as effective if its components are present and function effectively for operations, financial reporting, and compliance. he boards of directors and its audit committee have responsibility for making sure the internal control system within the organization is adequate. This responsibility includes determining the extent to which internal controls are evaluated. Two parties involved in the evaluation of internal control are the organizations internal auditors and their external auditors.Internal auditors responsibilities typically include ensuring the adequacy of the system of internal control, the reliability of data, and the efficient use of the organizations resources. Internal auditors identify control problems and develop solutions for improving and strengthening internal controls. Internal auditors are concerned with the entire range of an organizations internal controls, including operational, financial, and compliance controls.Internal control will also be evaluated by the external auditors. External auditors assess the effectiveness of internal control within an organization to plan the financial statement audit. In contrast to internal auditors, external auditors focus primarily on controls that affect financial reporting. External auditors have a responsibility to report internal control weaknesses (as well as reportable conditions about internal control) to the audit committee of the board of directors.6. Limitations of an Entitys Internal ControlInternal control, no matter how well designed and operated, can provide only reasonable assurance of achieving an entitys control objectives. The likelihood of achievement is affected by limitations inherent to internal control. These include the realities that human judgment in decision-making can be faulty and that breakdowns in internal control can occur because of human failures such as simple errors or mistakes. For example, errors may occur in designing, Maintaining, or monitoring automated controls. If an entitys IT personnel do not completely understand how an order entry system processes sales transactions, they may erroneously design changes to the system to process sales for a new line of products. On the other hand, such changes may be correctly designed but misunderstood by individuals who translate the design into program code. Errors also may occur in the use of information produced by IT. For example, automated controls may be designed to report transactions over a specified dollar limit for management review, but individuals responsible for conducting the review may not understand the purpose of such reports and, accordingly, may fail to review them or investigate unusual items. Additionally, controls, whether manual or automated, can be circumvented by the collusion of two or more people or inappropriate management override of internal control. For example, management may enter into side agreements with customers that alter the terms and conditions of the entitys standard sales contract in ways that would preclude revenue recognition. Also, edit routines in a software program that are designed to identify and report transactions that exceed specified credit limits may be overridden or disabled. Internal control is influenced by the quantitative and qualitative estimates and judgments made by management in evaluating the cost-benefit relationship of an entitys internal control. The cost of an entitys internal control should not exceed the benefits that are expected to be derived. Although the cost-benefit relationship is a primary criterion that should be considered in designing internal control, the precise measurement of costs and benefits usually is not possible. Custom, culture, and the corporate governance system may inhibit fraud, but they are not absolute deterrents. An effective control environment, too, may help reduce the risk of fraud. For example, an effective board of directors, audit committee, and internal audit function may constrain improper conduct by management. Alternatively, the control environment may reduce the effectiveness of other components. For example, when the nature of management incentives increases the risk of material misstatement of financial statements, the effectiveness of control activities may be reduced.7. Balancing Risk and Control Risk is the probability that an event or action will adversely affect the organization. The primary categories of risk are errors, omissions, delay and fraud In order to achieve goals and objectives, management needs to effectively balance risks and controls. Therefore, control procedures need to be developed so that they decrease risk to a level where management can accept the exposure to that risk. By performing this balancing act reasonable assurance” can be attained. As it relates to financial and compliance goals, being out of balance can cause the following problems:Excessive controlsExcessive controlsLoss of assets, donor or grantsIncreased bureaucracyPoor business decisionsReduced productivitynoncomplianceIncreased complexityIncreased regulationsIncreased cycle timePublic scandalsIncreased of no-value activities In order to achieve a balance between risk and controls, internal controls should be proactive, value-added, and cost-effective and address exposure to risk.8. Conclusion The concept of internal control and its aspects in any organization is so important, therefore understanding the components and standards of internal controls should be attend by management. Internal Control is a major part of managing an organization. Internal control is an accounting procedure or system designed to promote efficiency or assure the implementation of a policy or safeguard assets or avoid fraud and error. According to custom definition, Internal Control is a process affected by an entitys board of directors, management and other personnel designed to provide reasonable assurance regarding the achievement of objectives in the following categories namely. The major factors of internal control are Control environment, Risk assessment, Control activities, Information and communication, Monitoring. This article reviews the main standards and principles of internal control and described the relevant concepts of internal control for all type of company.References1Brian Ballou, Dan L Heitger.A Building - Block Approachfor Implementing COSOs Enterprise RiskManagement-Integrated.Framework.Management Accounting Quarterly, Winter 2005.2Tranki, Frank J, Steinberg, Richard M.Internal Control-Integrated Framework: A landmark study.The CPA Journal, Jun 1993.3May, Robert L.COSO - Internal Control: Committee ofSponsoring Organizations of the Tread Way Commission.ManagementAccounting, Mar 1993, Vol.74.4 Chicken JC, Posner T. The philosophy ofrisk M . London: Thomas Telford, 1998.5 HW Snider. Risk management: A retrospectiveview J . Risk Management, 1990, ( 04) .6 Sarbanes-Oxley Act,20027 Committee of Sponsoring Organizations of the Treadway Commission (COSO)，InternalControl-Integrated Framework,19928 Flint D. Philosophy and Principles of AuditingM. Macmillan Education Ltd, 1988.9IRM,AIRMIC,ALARM.ARiskManagementStandardS.2002,.A Clear Look at Internal Controls: Theory and Concepts内部控制透视：理论与概念 Hamed Arad (PhHammed Arad (Philae)Barak Jamshedy Navid伊斯兰阿扎德大学会计系译文出处：社会科学研究网络，研究报，2009（07）.摘 要:内部控制是旨在提高效率或保证一项执行政策、保护资产、避免欺诈和错误的一个会计程序或系统。内部控制是组织管理的重要组成部分，It comprises the plans, methods, and procedures used to meet missions, goals, and objectives and, in doing so, support performance-based management.它包括计划、方法和程序，用以满足任务、目标和目的的实现，并支持基于业绩的管理活动。Internal Control which is equal with management control helps managers achieve desired results through effective stewardship of resources. Internalcontrols should reduce the risks associatedwith undetected errors or irregularities, butdesigning and establishing effective internal controlsis not a simple task and cannot be accomplished through a shortset of quick fixes. In this paper the concepts of internal controls and different aspects of internal controls are discussed.内部控制与管理控制可以帮助管理者实现资源平等分配，通过资源的有效管理达到预期的效果。内部控制应减少未被发现的错误或违规行为等风险，但设计和建立有效的内部控制不是一个简单的任务，难以通过短期的权宜之计设置完成。本文对内部控制和内部控制的不同方面的概念进行了讨论。 Keywords : Internal Control, management controls, Control Environment, Control Activities, Monitoring关键词 ：内部控制；管理控制；控制环境；控制活动；监督 一、介绍The necessity of control in new variable business environment is not latent for any person and managementas a response factor for stockholdersand another should implement a greatcontrol over his/her organization.在瞬息万变的商业环境下，内部控制的存在是必要的，旨在合理保证实现企业基本目标的一系列控制活动。它不为任何人潜在，也不为以管理作为响应因素的股东和其他拥有更大控制权的组织而潜在Control is theactivity of managing or exerting controlover something. The emergence and developmentof systematic thoughts in recent decaderequired a new attention to business resource and control over this w。近十年来，系统思维概念的出现和发展，需要有全新的注意力集中在商业资源和财富的控制权上， One of the hot topic a boutcontrols over business resource is analyzingthe cost-benefit of each cont对经营活动中有关资源控制的热门话题之一就是控制成本效益分析。Internal Controls serve as the firstline of defense in safeguarding assetsand preventing and detecting errors andfraud. We can say Internal control is a whole system of controls financial and otherwise, established by the management for the smooth running of business; it includes internal cheek, internal audit and other forms of control作为保障资产以及预防和检测错误与欺诈行为的第一道防线，可以说在财政控制和其他方面业务的整个系统中，内部控制是为了能够让管理活动顺利运行而建立，它包括内部核算、内部审计和其他形式的控制。二、COSOdescribe Internal Control as follow. Internalcontrols are the methods employed to help ensure the achievement of an objective.COSO的内部控制描述内部控制是用来帮助目标实现的方法。在会计理论和组织理论中，内部控制被定义为：被审计单位为了保证业务活动的有效进行，保护资产的安全和完整，防止、发现、纠正错误和舞弊，保证会计资料的真实、合法、完整而制定和实施的政策和程序。内部控制是组织的资源管理、监控和判断的手段，它在预防、侦查欺诈和保护组织的资源方面发挥着重要的作用，其中资产包括有形资产（如，机械和财产）和无形资产（如，声誉或知识产权，如商标）。在组织层面，内部控制目标涉及到财务报告的可靠性，需要及时反馈对业务或战略目标的实现以及对法律和法规的遵守情况。At the specific transaction level, internal controlrefers to the actions taken to achievea specific objective (eg, how to ensurethe organizations payments to third partiesare for valid services rendered.) Internalcontrol procedures reduce process variation,leading to more predictable outcomes.在具体的交易层面，内部控制是指为实现特定的目标所采取的行为（例如，如何确保本组织的款项能够