International Journal of Academic Research in Accounting, Finance and Management Sciences

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Volume 8, Issue 1 (January, 2018)

Abstract

The evolution of internal control systems brought also out the fact that risks have evolved, especially in the insurance and reinsurance sector, as outlined below. More often than not, the management of the insurance and reinsurance entities asks the questions: how would it be better? to set up more controls or to target control better? The opinions are divided. Some authors argue that, at present, control being structured in accordance with the information systems, the priority should be given to the legitimacy of these risk-related controls. The issue we want to talk about does not refer to what controls do, what it controls, but rather if it is tailored to the specifics of insurance entities and if it is effective. Even though internal control provides only reasonable assurance, quality-based reflections have proven in terms of effectiveness that they leave room for a fake reassuring logic, namely risk control. In this article, we want to briefly outline some aspects of the Lean Six-Sigma approach as an opportunity to reconcile operational and risk control objectives into a common performance target.

Keywords

Insurance, Risk, Warranty, Accounting, Hypothesis, Control

Full Text :PDF DOI: 10.6007/IJARAFMS/v8-i1/3782
Abstract

This research seeks to demonstrate and analyze the usefulness of the accounting information provided by the annual financial statements for measuring and analyzing the performance of credit institutions in Romania. The objective of this research was to understand the technical and practical activities of the financial institutions of Romania. Commercial banks represent the main category of credit institutions in our country, reflected by the level of bank assets and, implicitly, the market share. The banking sector in the market economy plays a very important role, as it acts in promoting the reform and in the concrete manifestation of the mechanism of economic self-regulation, in which it is practically a basic component of the economic and financial system of a country. It is well known that in the recent years, the majority of Romanian economic entities have rather weak financial results compared to the values registered at the level of the European Union, so the analysis of the performance of the financial statements has come to a second place. The study was conducted on two banks, namely the Romanian Commercial Bank and Transilvania Bank. The study ends with the author’s conclusions regarding the measurement and analysis of the performance on the financial statements of the credit institutions in our country.

Keywords

Performance Analysis, Performance Indicators, Credit Institutions, Financial Statements, Sources of Information

Full Text :PDF DOI: 10.6007/IJARAFMS/v8-i1/3783
Analyzing the Effective Factors on Internal Audit Quality of Health Insurance Organization of Iran
Author(s): Mojtaba Karbalaei KHANI, Mahdi NOROOZIAN      Pages: [19-25]
Abstract

The purpose of this study is to investigate the factors affecting the quality of internal audit of health insurance organization. This applied research is a descriptive-correlational study. The statistical population of the study includes all senior managers and senior health insurance experts, which is 440 people. Sampling method in the present study is the available sampling, because the statistical population is limited. Morgan table was used for sampling. The sample size was calculated for 200 people using the Morgan table. Data analysis in this research is done by descriptive statistics and inferential statistics. Descriptive statistics are used to extract information about demographic data such as age, gender, work experience etc. The research tool has been adjusted in 22-item questionnaire with 5 dimensions in Likert scale. Descriptive and inferential correlated t statistics were used to analyze the data using spss software. Findings indicated that experience related to accounting, education, training and outsourcing has a direct and significant impact on internal audit quality. Also, for the importance and priority of the importance of the impact of factors affecting the quality of internal audit, Friedman test has been used that employee training is more important than other factors.

Keywords

Experience, Education, Training, Outsourcing, Audit Quality, Health Insurance of Iran

Full Text :PDF DOI: 10.6007/IJARAFMS/v8-i1/3784
Abstract

Given the fact that profitability is vital for sustainability, the main aim of this study was to determine the relationship between bank profitability and micro variables, with particular emphasis on bank type for the banking sector of Northern Cyprus. Cross-tabulation was applied to examine whether different bank types reveal similar levels of profitability. The profitability of the Northern Cyprus banking sector was profitable, even though real growth rates were negative during the periods concerned. However, the profitability of branch banks and foreign-capitalized banks was found to be higher for structural, managerial, technical and economic reasons. The banking sector of Northern Cyprus has stable profitability. Because of their unique characteristics, different bank types naturally have dissimilar profitability structures. Furthermore, equity, personnel expenses, non-performing loans and total deposits are negatively correlated with profitability, while total loans are positively correlated with profitability.

Keywords

Bank Profitability, Bank Types, Micro Variables, Relationship, Northern Cyprus

Full Text :PDF DOI: 10.6007/IJARAFMS/v8-i1/3785
Impact of Capital Flight on Exchange rate in Nigeria
Author(s): Johnny NELSON, Okoyan KROKEME, Dumani MARKJARKSON, Ekokeme Tamaroukro TIMIPERE      Pages: [41-50]
Abstract

The study examined capital flight and real exchange rate in Nigeria from 1990 to 2014. The study used five independent variables (capital flight, foreign direct investment, current account balance, foreign borrowing and external reserves) and one dependent variable (real exchange rate). Test carried out include unit root test, co-integration test, causality test and ordinary least square. The study revealed that: There is positive significant relationship between foreign borrowing and real exchange rate in Nigeria, there is negative and insignificant relationship between capital flight and real exchange rate in Nigeria, there is positive and insignificant relationship between foreign direct investment and real exchange rate in Nigeria, there is negative insignificant relationship between current account balance and real exchange rate in Nigeria, and there is positive insignificant relationship between foreign reserves and real exchange rate in Nigeria. Based on the findings, the study recommends that, real exchange rate depreciation and appreciation can cause an increase in capital flight, there is a serious need by the fiscal authorities to pursue policy that creates less exchange rate uncertainties and should also ensure that real exchange rate movements are stable and this can also be complemented by closely observing the general rise in the price level.

Keywords

Real Exchange Rate, Capital Flight, Foreign Direct Investment, Current Account Balance, Foreign Borrowing and External Reserves

Full Text :PDF DOI: 10.6007/IJARAFMS/v8-i1/3794
Abstract

This article aims to highlight the importance of control measures of the institutions implementing and managing EU funds. Both from a legal standpoint and in terms of practical application there are differences and similarities in the performance of control to the public institutions and its application in private companies. In this article is a synthesis theory on the notion of control, the importance of control to prevent irregularities and fraud, legal issues related to control of the implementation of European projects in view of the principles of sound financial management and fairness granting and use of funds, application control both in public institutions and in private entities.

Keywords

Control, Fraud, European Projects, Irregularities

Full Text :PDF DOI: 10.6007/IJARAFMS/v8-i1/3795