| 1. |
- Arwinge, Olof, 1971-
(författare)
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Internal Control : A Study of the Concept and Themes of Internal Control
- 2010
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Licentiatavhandling (övrigt vetenskapligt/konstnärligt)abstract
- This thesis studies the accounting and auditing approach to control where the concept of internal control has developed along with the theory and practice of accounting and auditing and its stated objectives. In this context, internal control has traditionally been regarded as a means of ensuring financial reporting quality as well as a way of preventing and detecting fraudulent activity.We have surveyed scientific research on the subject of internal control and reviewed regulatory texts as well as practical frameworks and standards. Based on this literature study, we have investigated some of the findings from previous research. Components and particular features of internal control were described and discussed. We have also identified and summarized themes and issues that frequently occur in writings on the subject.During recent years, demands have been made for greater accountability and transparency in corporate governance. The independent audit activity has become the primary tool for securing accountability. Some regard this as the emergence of an audit society. An important joint development has been the rise of internal control systems. Internal control, once a private matter for technical assurance specialists, has risen to be an autonomous field of expertise and a mode of organizing uncertainty. Traditionally internal control has had a fairly direct relationship to the accounting records. The wider approaches to internal control have expanded its boundaries significantly, far beyond the financial reports and the duties of the accountant. Internal control has become an all-encompassing process.Enterprise risk management practices are growing and evolving. An associated development has been that internal control has become more closely tied to these risk management practices, and therefore also to the formulation and execution of strategies. New risk-related regulations and practical frameworks have contributed to the transformation of internal control into a co-extensive with risk management. Internal control is now considered to be a form of risk treatment through which risk may be managed in different ways.Internal control is today a primary regulatory and formal olicy object. Lawmakers and supervisory authorities are increasingly concerned with the design and operating effectiveness of internal controls. Disclosure requirements imposed on firms are forcing them to provide public disclosures about their internal control systems, which were previously private to firms.Both scientific research and practical writings suggest that internal control designs are contingent upon certain variables. These variables include company objectives and strategies, regulatory characteristics, risk and risk appetite, firm size and managements’ attitudes to risk and control. Building internal control capabilities is important if firms are to be able to design balanced, integrated, dynamic and cost-effective internal controls.Internal control is considered to be a key corporate governance mechanism. Some researchers however, have pointed out that there is still much to learn about internal control quality and how internal control is associated with corporate governance quality. The fact that internal control is an inherently complex concept poses a significant research barrier, and while all research methods are valid, it is unlikely that archival studies or experiments are able to measure internal control quality. Instead, we recommend case studies of how firms design, apply and oversee their systems of internal control.This study was made possible through the research collaboration between my former employer, Skandia, and Linköping University through the Research Programme for Auditors and Consultants. During the final stage, generous funding was provided by the Jan Wallanders and Tom Hedelius foundation as well as the Tore Browaldhs foundation.
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| 2. |
- Arwinge, Olof, 1971-
(författare)
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Internal Control : A study of concept and themes
- 2012
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Licentiatavhandling (övrigt vetenskapligt/konstnärligt)abstract
- The concept of internal control has developed along with audit practice. As demands have been made for greater accountability in corporate governance, the significance of internal control systems in companies has increased. Traditionally internal control has had a fairly direct relationship to financial reporting quality but wider approaches to internal control have expanded those boundaries much further. Stakeholders are increasingly concerned with the effectiveness of internal controls, and disclosure requirements are making firms to go public with regard to their internal control systems. From a design perspective,current research suggests that internal control designs are contingent upon variables such as company strategies, risk appetite, regulatory characteristics, and organizational size. Also there is much to learn about internal control quality, and the way internal control quality is associated with overall corporate governance quality. This book fills that gap.
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| 3. |
- Arwinge, Olof, 1971-
(författare)
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Internal Control in the Financial Sector : A Longitudinal Case Study of an Insurance Company
- 2014
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Doktorsavhandling (övrigt vetenskapligt/konstnärligt)abstract
- This thesis comprises of an initial summary of Study I which is my licentiate thesis in business administration. Study I is a literature study on internal control. Thereafter follows Study II which is a case study of Swedish insurance organization. The case study adopts a contingency perspective and attempts to find environmental and firm-level factors that influence the design, use and outcome of internal control. Study II is a longitudinal study that accounts for key internal-control developments that occurred between 2000-2010. This case study finds that there are two environmental influences that significantly affected internal-control design, use and outcome. They consist of environmental uncertainty and regulatory and supervisory forces. Their influences differ in nature but jointly they act to set boundaries and frame in-ternal-control design, use and outcome. There are two firm-level influences of governance structure and managerial attitudes that act jointly with strategy to affect the design, use and outcome of internal control. While environmental influences set boundaries and frame internal-control work, firm-level contingencies can effectively enable or disable internal-control effectiveness. These firm-level influences provide means and opportunities to internal-control work. My longitudinal research suggests that evolutionary steps have been taken regarding internal-control design and use. In sum these steps correspond to a shift in internal-control orientation and a transformation of practices where Folksam has been moving from a looser towards a tighter form of internal control, with greater transparency in operational risk management. Finally, based on the internal-control principles of the COSO framework I see that particular principles have been enhanced within the Folksam system of internal control. The components of these principles are the control environment, risk assessment and monitoring.
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| 4. |
- Crawford, Jason, 1975-
(författare)
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Regulation's Influence on Risk Management and Management Control Systems in Banks
- 2017
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Doktorsavhandling (övrigt vetenskapligt/konstnärligt)abstract
- This dissertation explores regulation’s influence on risk management and management control systems (MCS) in banks. The dissertation comprises of an introductory chapter, two published book chapters, one of which is an extensive literature review, and two working papers, presented at several European conferences. The overall objective of this dissertation is to explore how banks are responding to banking regulation in light of the 2007-08 financial crisis and what the implications of those responses are, particularly in relation to risk management and MCS, and their interactions. The overall research question is therefore: what influence does regulation have on risk management and management control systems in banks over time? The intended ambition is to contribute to existing knowledge on the relationship between bank regulation, risk management, and MCS by providing several practical and theoretical contributions. The dissertation employs an adapted theoretical framework and uses institutional theory and contingency theory to expose tensions between, the demands for uniformity residing in banking regulation, and the demands for uniqueness residing inside banks themselves as they seek to maintain control over the design and use of their organizational controls. The empirical material used in the longitudinal case study is gathered from a large European bank. The main findings of the dissertation are as follows. In Paper I, the findings show that banking regulation’s influence on risk management and management control is mixed, which in turn can influence risk management’s integration with MCS. The paper also finds that very little knowledge exists about regulation’s influence on risk management and MCS. In Paper II, the findings show that while regulatory influence in IT control has increased over time, banks continue to exercise significant influence over regulatory demands. In Paper III, the findings show how regulation’s influence varies considerably over time and that increased regulatory pressure can lead to a higher degree of integration between risk management and MCS across the three dimensions of integration. In Paper IV, the findings show how regulation’s influence is shaping the mental processes of management and employees, and can vary significantly based on several identified factors.
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| 5. |
- Fagerberg, Jesper, 1976-
(författare)
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Occupational Fraud : Auditors’ Perceptions of Red Flags and Internal Control
- 2008
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Licentiatavhandling (övrigt vetenskapligt/konstnärligt)abstract
- The overall purpose of this thesis is to increase the understanding of auditors’perceptions of occupational fraud. The focus is limited to red flags andinternal control, i.e. to the indications or symptoms of occupational fraud andthe internal control systems which are implemented in order to detect andprevent such actions from being carried out.The thesis is based on 33 interviews with auditors and experts. In order toincrease confidence, triangulation was applied which implied both aqualitative as well as a quantitative methodological approach. The collecteddata was in turn analysed through two models of analysis – an adjustedversion of the so called fraud triangle and the so called COSO-model. Theanalysis was carried out on the group of auditors as a whole (including subgroupsof auditors) as well as compared to a group of experts on fraud andoccupational fraud.The results from the study indicate several aspects of interest regardingauditors’ perceptions of occupational fraud. First, the results indicate a tendencyamong auditors to emphasise “harder” aspects stronger than “softer”aspects. Seen from the fraud triangle, this was manifested by an emphasis onopportunity; when concerning internal control of control activities in theCOSO model, this was emphasised relatively stronger. Second, the resultsindicate a rather strong heterogeneity among auditors in their perceptions ofoccupational fraud. Third, all subparts of the applied models were seldomcovered on an individual basis. Fourth, the interconnection between harderand softer sides, both concerning red flags and internal control, were not verystrongly emphasised. The results were given additional strength from thecomparison with the group of experts.The study also included a comparison among different subgroups of auditors.The subgroups were constructed based on accumulated working experience aswell as whether the respondents primarily audit larger or smaller companies.The results that were based on years of experience indicate a tendency amongolder auditors with more accumulated working experience to emphasise softeraspects relatively stronger, than auditors with less working experience. Thistendency was present for red flags as well as for internal control. More experienced auditors also demonstrated a tendency to emphasise a relativelylarger part of the two applied models of analysis. The division based on sizeof audited companies indicated similar tendencies as were found for bothmore and less experienced auditors. Hence, auditors who mainly audit largercompanies showed a tendency to emphasise softer aspects relatively strongercompared to auditors who mainly audit smaller companies.
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| 6. |
- Nilsson Jannesson, Erik B, 1979-
(författare)
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Strategi, styrning och konkurrenskraft : En longitudinell studie av Saab AB
- 2010
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Doktorsavhandling (övrigt vetenskapligt/konstnärligt)abstract
- Att skapa sammanhängande koncern-, affärs- och funktionsstrategier (strategisk kongruens), samt ett styrsystem med ett samstämmigt informationsflöde i och mellan de centrala styrverktygen (integrerad styrning), har sedan länge hävdats vara centralt för koncerners konkurrenskraft. I den mängd empiriska studier som legat till grund för detta har främst en eller två organisatoriska nivåer fokuserats när relationerna mellan strategier, styrning och konkurrenskraft diskuterats. Studier som tar ett helhetsgrepp om dessa samband efterfrågas därför för att öka kunskapen om och förståelsen av sambanden. Föreliggande avhandling svarar mot den efterfrågan.En longitudinell fallstudie för perioden 1995–2007 har genomförts. Strategier, ekonomistyrning och produktionsstyrning på koncern-, affärs- och funktionsnivå har studerats inom försvars- och säkerhetskoncernen Saab AB. Tre affärsenheter har studerats i detalj: Saab Aerosystems, Saab Bofors Dynamics och Saab Systems. Det empiriska materialet har samlats in genom 74 intervjuer med totalt 54 respondenter samt via både internt och publikt skriftligt material.Avhandlingen visar att strategisk kongruens och integrerad styrning skapas genom ömsesidig anpassning av strategier och styrning på koncern-, affärs- och funktionsnivå. Genom en sådan ömsesidighet anpassas styrningen till koncernens kritiska framgångsfaktorer och ett integrerat informationsflöde skapas. Inom Saab har detta i sin tur påverkat beteendet på alla nivåer och bidragit till att det förändrats i enlighet med strategierna. De senare har därmed implementerats. Samtidigt som dessa beteendeförändringar skett har Saabs konkurrenskraft varit god. Då implementerade strategier, anpassade utifrån omgivningen, kan antas vara en viktig del i ett företags framgång har Saabs strategiska kongruens och integrerade styrning rimligen haft en väsentlig betydelse för koncernens konkurrenskraft.
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| 7. |
- Scheja, Mikael, 1972-
(författare)
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Börsbolags redovisning av alternativa resultatbegrepp : En studie om hur, och varför, bolag noterade på Stockholmsbörsen redovisar Non-GAAP Measures
- 2009
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Doktorsavhandling (övrigt vetenskapligt/konstnärligt)abstract
- It has become common for listed companies to present earnings measures undefined by GAAP. These measures are commonly referred to as Non-GAAP Measures, or in short: NGM. Prior NGM research has to a large extent been undertaken with quantitative methods in order to compare the relevance of NGM with GAAP as explanations for company value, but has not been directed towards prepares’ motives for the presentation of NGM. Research about companies’ presentation of NGM and to what extent such measures are presented has been limited. The purpose of the dissertation is therefore to increase the knowledge and understanding of listed corporations’ presentations of Non-GAAP Measures. As is implied by the title two research questions are addressed: “How do companies listed on the Stockholm stock exchange present other earnings measures than those defined by GAAP (Non-GAAP Measures)?” and “Why do companies on the Stockholm stock exchange present NGM?”.According to accounting standardization accounting information should be presented to provide usefulness to users. However, accounting theories expresses that preparers may have other motives. Positive Accounting Theory suggests that prepares may have incentives to present NGM because accounting measures effect the outcome in contracts. Smoothing theory states that preparers are opportunistic and strive to maximize personal benefits, they believe they can influence users through the accounting presentation. Thus, there are different explanations as to why preparers may use earnings management. In accounting literature the term earnings management means that management deliberately chooses accounting principles in order to achieve a certain earnings number. The chosen principles affect the measurement and recognition of an accounting item. In the dissertation earnings management is explained to also comprise when preparers choose principles for the presentation of an earnings measure.Findings in the dissertation are, among other things, that NGM can be found in large numbers, are presented by most preparers and are to a great extent unique for each company. Companies mostly report NGM to adjust earnings for items affecting comparability and to enable comparison of an entity over time. It is common for companies in their interim reports to present NGM prominent relative to GAAP earnings. Users need to be aware of the uniqueness of a company’s NGM and that NGM with similar names can contain summarizations of different income and expense items. Many NGM are presented unaccompanied by a definition from the preparer and it is common for a user of a report to be unable to see how a NGM has been computed. A company’s presentation of NGM is also often changed during the year. A difficult issue is the trade-off between different qualitative characteristics in a NGM. If a measure should be relevant it may be hard to combine with comparability and reliability. Uncertainty regarding what items of income and expense NGM contains and the change of the composition of the measures over time results in NGM that are hard to compare within and between companies. But it can also result in additional consequences. Information asymmetry, contractual costs, costs in the allocation of capital, risks of adverse selection and moral hazard with preparers can decrease the benefit of presented NGM for users.Prior literature has put forth two principal motives and explanations for preparers’ presentation of NGM: improved information to the user and earnings management due to either opportunism or contracts. The method used in the dissertation, a combination of an analysis of financial reports and interviews with preparers, has resulted in the conclusion that there are also preparers who do not have an overall motive for the presentation of NGM. They are from time to time influenced by different factors without any pattern of co variation between either the factors or the preparers. Furthermore some preparers who have the motive of improved information cannot fully master to present NGM that satisfies the underlying normative qualitative characteristics of comparability, reliability and relevance.
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| 8. |
- Styf, Elisabeth
(författare)
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Styrelsens ansvar för den interna kontrollen
- 2011
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Licentiatavhandling (övrigt vetenskapligt/konstnärligt)abstract
- Intern kontroll fick ökad uppmärksamhet i svenskt näringsliv i och med att en svensk kod för bolagsstyrning (Koden) gavs ut 2004. Att övervaka och bedöma den interna kontrollen är ett komplext och omfattande ansvar som är svårt att överblicka för en enskild styrelseledamot.Viss forskning har bedrivits under 2000-talet inom bolagsstyrning och intern kontroll. Revisionsutskottets möjlighet att säkerställa den interna kontrollen och minska riskerna för felaktigheter i den finansiella rapporteringen har bl.a. studerats. När arbetet med den här avhandlingen påbörjades fanns i huvudsak endast forskning som baserade sig på andra länders regelsystem. Svensk bolagsstyrning har till stora delar påverkats av regelsystemen i de anglosaxiska länderna, men vissa förhållanden är specifika för bolag som är noterade på svenska börser. Det är därför angeläget att studera bolagsstyrning och intern kontroll från ett svensktperspektiv.I avhandling ges en genomgång av Koden och dess formulering av styrelsens ansvar för intern kontroll. Syftet är att undersöka hur tydligt styrelsens ansvar har formulerats i Kodens regelverk samt vilka förutsättningar styrelsen har att följa reglerna. En empirisk studie genomfördes under 2007–2008, då ett 80-tal svenska börsföretag var berörda av Koden. I studien intervjuas tio styrelseledamöter om hur de upplever sitt ansvar för företagets interna kontroll och sin roll gentemot övriga bolagsorgan, dvs. ägarna, företagsledningen och revisorerna. Som ett komplement till intervjuerna analyseras 2007 års internkontrollrapporter för de företag där styrelseledamöterna varit verksamma.När Koden gavs ut hade vare sig regelsättarna eller svenska styrelseledamöter en tydlig bild över innebörden och nyttan av intern kontroll. Tidigare studier om bolagsstyrning visar att det tar tid innan förändringar får genomslag. Även denna studie visar att förändringar sker successivt. I de företag som analyserats pågår ett arbete som syftar till att förbättra den interna kontrollen. För att nå framgång i arbetet har styrelseledamöterna anammat ett pragmatiskt synsätt på sitt ansvar, som till stor del innebär att de förlitar sig på samarbete med företagsledningen. I stället för att utöva strikt kontroll och övervakning, söker styrelseledamöterna skapa en effektiv företagskultur där de tillsammans med företagsledningen strävar efter en god intern kontroll i bolaget.I likhet med tidigare forskningsresultat visar denna studie att kravet på revisionsutskott medfört att kontakterna mellan styrelsen och revisorerna har underlättats. Mötena i revisionsutskottet ger styrelsen en möjlighet att fördjupa sig i frågor om intern kontroll och finansiell rapportering. Dock saknas mer handfasta riktlinjer om vad revisorernas rapportering på utskottsmötena bör innehålla. Det finns en risk för ett förväntningsgap mellan styrelseledamöterna och revisorerna beträffande rapporteringens innehåll, och på vilket sätt den bör kommuniceras.Studien visar att internkontrollrapporteringen vid de undersökta företagen är alltför generell för att läsaren ska kunna få en uppfattning om företagets riskhanteringsprocess och kontrollåtgärder. Genom att komplettera Kodens Vägledning med förtydligande och metodbeskrivningar för riskbedömning skulle rapporteringen kunna göras mer informativ.Vidare visar studien att Kodens otydliga definition av internrevision återspeglas i styrelseledamöternas uppfattning om internrevisionens roll i internkontrollfrågor. Vare sig Koden eller Kodens vägledning beskriver internrevisionens roll och ansvar eller hur den kan bidra till att ge styrelsen ökad kunskap om bolagets interna kontrollstruktur.Kodens regler baseras på självreglering, vilket möjliggör för styrelsen att frångå reglerna och i stället ge en förklaring till varför dessa inte följs. Det ställs därför krav på att aktörer, såsom investerare, regelsättare och medier, intresserar sig för den information som lämnas eller inte lämnas, i styrelsens internkontrollrapportering. Om ingen efterfrågar informationen eller ställer krav på innehållet kommer intresset att minska, och företagens brist på god intern kontroll kommer endast att få fokus i samband med företagsskandaler.
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