The concept and practice of a trust-based business model affects all activities of the organisation, regardless of the organisation’s business activity in the business sphere. The European Union strongly supports (BEMSZ – Hungarian Public Benefit Purpose Entity of Internal Auditors 2015) the expansive introduction and application of best practice in management principles and their implementation to business processes, as a low level of business confidence limits the development potential of potential economic operators, may endanger their business activities, and rising operating costs due to lack of trust may cause competitive disadvantage as well.
Controller Info 2019. VII.évf.(4) szám 57-61.
„Conscious engagement of business risks is an indispensable element of economic development and innovation, thus it is important…how smooth risk management is (BPM-GOSPEL, 2012 pp 5). The aim of our paper is to emphasize the importance of internal control in the development of corporate controlling models, and their need to maintain its development and innovation capacity.
In addition to the secondary processing of relevant literature and applied research methods, being a member, lecturer and udience at the conferences and thought-provoking lectures of BEMSZ (Hungarian Public Benefit Purpose Entity of Internal Auditors) has also supported the creation of our study in various aspects. In the form of in-depth interviews, we asked Hungarian internal audit experts about both the present challenges and future prospects. During the qualitative interviews with the students of Economics, Certified Financial Auditor and Certified Public Accountant programs at BGF PSZK (now Faculty of Finance and Accounting at the Budapest University of Economics), we applied the method of personal data collection.
Between October 2016 and May 2017 we conducted interviews with a total of 148 volunteers at the beginning of their training, asking about their existing knowledge and expectations on internal control systems in corporations.
List of References
1. Abdolmohammadi, M. and Boss, S. (2010), “Factors associated with IT audits by the internal audit function”, International Journal of Accounting Information Systems, Vol. 11 No. 3, pp. 140-151.
2. Allegrini, M., D’Onza, G., Melville, R., Paape, L. and Sarens, G. (2006), “The European literature review on internal auditing”, Managerial Auditing Journal, Vol. 21 No. 8, pp. 845-853.
3. Aloini, D., Dulmin, R. and Mininno, V. (2007), “Risk management in ERP project introduction: review of the literature”, Information & Management, Vol. 44 No. 6, pp. 547- 567.
4. A Magyarországon elérhetõ legnépszerűbb ERP rendszerek listája, XAPT Hungary Kft. tanulmánya: http://www.minuszos.hu/wp-content/uploads/doc/a-25-legnepszerubberp-rendszer.pdf (letöltve, 2015. szeptember)
5. Avgerou, C. (2001), “The significance of context in information systems and organisational change”, Information Systems Journal, Vol. 11, pp. 43-63.
6. Barrett, M., Sahay, S. and Walsham, G. (2001), “Information technology and social transformation: GIS for forestry management in India”, The Information Society, Vol. 17 No. 1, pp. 5-20.
7. Belsõ Ellenõrök Magyarországi Közhasznú Szervezete (BEMSZ, 2015) Hírlevél 2015. I. szám
8. Bierstaker, J., Burnaby, P. and Thibodeau, J. (2001), “The impact of information technology on the audit process: an assessment of the state of the art and implications for the future”, Managerial Auditing Journal, Vol. 16 No. 3, pp. 159-164.
9. Boyle, D.M., Wilkins, A.M. and Hermanson, D.R. (2012), “Corporate governance: preparing for the expanding role of the internal audit function”, Internal Auditing, Vol. 27 No. 2, pp. 13-18.
10. Business Process Modelling for Governance SPICE and Internal Financial Control BPM-GOSPEL projekt-konzorcium Kiadvány (2012. november): Felelõs Vállalkozások Irányítási Modellje (A Vállalkozások Irányítási Képességének Fejlesztéséhez), Budapest
11. Carcello, J., Hermanson, D. and Raghunandan, K. (2005), “Changes in internal auditing during the time of the major US accounting scandals”, International Journal of Auditing, Vol. 9 No. 2, pp. 117-127.
12. Chapman, C. and Kihn, L. (2009), “Information system integration, enabling control and performance”, Accounting, Organisations and Society, Vol. 34 No. 2, pp. 151-169.
13. Coso.org (2014) How the COSO framework can help. Online:http://www.coso.org/documents/2014-2-10-COSO%20 Thought%20Paper.pdf (Letöltve: 2014. július 10.)
14. Ebaid, I.E. ; Al‐Mukarramah, M. (2011), “Internal audit function: an exploratory study from Egyptian listed firms”, International Journal of Law and Management, Vol. 53 No. 2, pp. 108-128.
15. Elbardan, H. and Ali, M. (2013), “Internal auditing legitimacy and ERP systems implementation: an institutional case analysis of a multinational bank”, British Accounting and Finance Association Annual Conference, Newcastle, 9-11 April.
16. Emerson, D., Karim, K. and Rutledge, R. (2009), “SOX and ERP adoption”, Journal of Business & Economics Research, Vol. 7 No. 4, pp. 51-56.
17. Fenyves, V., Bács, Z., Zéman, Z., Böcskei, E., Tarnóczi, T. (2018), THE ROLE OF THE NOTES TO THE FINANCIAL STATEMENTS IN CORPORATE DECISION-MAKING CORPORATE OWNERSHIP AND CONTROL 15 : 4 pp. 138-148.
18. Fenyves V., Tarnóczi T. (2019): Examination of the expectations of controllers on the labour market CORPORATE OWNERSHIP AND CONTROL 17 : 1 pp. 60-70.
19. Gosain, S. (2004), “Enterprise information systems as objects and carriers of institutional forces: the new iron cage?”, Journal of the Association for Information Systems, Vol. 5 No. 4, pp. 151-182.
20. Grabski, S.V., Leech, S.A. and Schmidt, P.J. (2011), “A review of ERP research: a future agenda for accounting information systems”, Journal of Information Systems, Vol. 25 No. 1, pp. 37-78.
21. Gramling, A.A., Maletta, M.J., Schneider, A. and Church, B.K. (2005), “The role of the internal audit function in corporate governance: a synthesis of the extant internal auditing literature and directions for future research”, Journal of Accounting Literature, Vol. 23, pp. 194-244.
22. Hunton, J., Wright, A. and Wright, S. (2001), “Business and audit risks associated with ERP
23. systems: knowledge differences between information systems audit specialists and financial auditors”, 4th European Conference on Accounting Information Systems (ECAIS), Athens, May.
24. International Federation of Accountants (IFAC) (2006), “Internal controls – a review of current developments”, information paper, Professional Accountants in Business Committee, New York, NY, available at: www.ifac.org (accessed May 2012).
25. Ivanyos János, Trusted Business Partners Kft: http://www.trusted.hu/index.php/kockazatkezelesrol-vezetoknek/kvkockazatkezelesrol-vezetoknek/1-resz-kontrollok-es-mellekhatasok (letöltve: 2014. március 6.)
26. Kallinikos, J. (2004), “Deconstructing information packages:organisational and behavioural implications of ERP systems”, Information Technology & People, Vol. 17 No. 1, pp. 8-30.
27. Kanellou, A. and Spathis, C. (2013), “Accounting benefits and satisfaction in an ERP environment”, International Journal of Accounting Information Systems, Vol. 14 No. 3, pp. 209-234, available at: http://dx.doi.org/10.1016/j.accinf. 2012.12.002
28. Lightle, S. and Vallario, C. (2003), “Segregation of duties in ERP”, Internal Auditor, Vol. 29 No. October, pp. 27-29.
29. Madani, H. (2009), “The role of internal auditors in ERPbased organisations”, Journal of Accounting & Organisational Change, Vol. 5 No. 4, pp. 514-526.
30. Magyarországi Vezérigazgató Felmérés. PwC (2015): http://www.pwc.com/hu/hu/kiadvanyok/magyarorszagi_vezerigazgato_felmeres/2015/assets/pwc_ceosurvey_hu_online.pdf
31. Munro, L. and Stewart, J. (2010), “External auditors’ reliance on internal audit: the impact of sourcing arrangements and consulting activities”, Accounting and Finance, Vol. 50 No. 2, pp. 371-387.
32. Paape, L., Scheffe and Snoep, P. (2003), “The relationship between the internal audit function and corporate governance in the EU – a survey”, International Journal of Auditing, Vol. 7 No. 3, pp. 247-262.
33. Petter, S. DeLone, W. and McLean, E. (2008), “Measuring information systems success: models, dimensions, measures, and interrelationships”, European Journal of Information Systems, Vol. 17 No. 3, pp. 236-263.
34. Robson, K., Humphrey, C., Khalifa, R. and Jones, J. (2007), “Transforming audit technologies: business risk audit methodologies and the audit field”, Accounting, Organisations and Society, Vol. 32 No. 4, pp. 409-438.
35. Saharia, A., Koch, B. and Tucker, R. (2008), “ERP systems and internal audit”, Issues in Information Systems, Vol. IX, No. 2, pp. 578-586.
36. Scott, J. and Vessey, I. (2002), “Managing risks in enterprise systems implementations”, Communications of the ACM, Vol. 45 No. 4, pp. 74-81.
37. Sia, S., Tang, M., Soh, C. and Boh, W. (2002), “Enterprise resource planning (ERP) systems as a technology of power: empowerment or panoptic control?”, The Data Base for Advances in Information Systems, Vol. 33 No. 1, pp. 23-37.
38. Spathis, C. and Constantinides, S. (2004), “Enterprise resource planning systems’ impact on accounting processes”, Business Process Management Journal, Vol. 10 No. 2, pp. 234-247.
39. Spira, L.F. and Page, M. (2003), “Risk management: the reinvention of internal control and the changing role of internal audit”, Accounting, Auditing and Accountability Journal, Vol. 16 No. 4, pp. 640-661.
40. Wright, S. and Wright, A. (2002), “Information system assurance for enterprise resource planning systems: unique risk considerations”, Journal of Information Systems, Vol. 16 No. 1, pp. 99-113.
41. Zéman, Z., Szabó Z., Bárczi, J. (2012), „The operative and strategic controlling connection with decision making.” In:Bélyácz, I., Fogarasi, J., Szabó, K., Szász, E. : Knowledge and sustainable economic development Oradea, Románia: Partium Publisher pp. 233-245.