企业内部控制外文翻译文献编辑.docx

1、企业内部控制外文翻译文献编辑文献信息：文献标题：Perspectives on Internal Control and Enterprise Risk Management（内部控制与企业风险管理透视）国外作者：İdil Kaya文献出处：Eurasian Business Perspectives,2017,11(02):379-389字数统计：英文2788单词，16276字符；中文5242汉字外文文献：Perspectives on Internal Control and Enterprise Risk ManagementAbstract Grounded on the litera

2、ture review on Enterprise Risk Management (ERM) this paper aims to analyze the extent and the effectiveness of internal control as well as ERM and to explore their connection with the value creation. A theoretical lens is used to discuss whether effective internal control and ERM enhance performance

3、 and increase value creation ability. ERM is most frequently defined with the reference to the 2004 Guidance document published by Committee of Sponsoring Organizations of Treadway Commission (COSO). Proponents of COSOs ERM Integrated Framework describe this framework as “a world-level template for

4、best practice”, and claim that ERM used by management to enhance an organization ability to manage uncertainty and to consider how much risk to accept as it strives to increase stakeholder value. Additionally the Internal Control Integrated Framework is a viable and suitable framework for designing,

5、 implementing, conducting and assessing the effectiveness of internal control and for reporting. The relationship between value creation and ERM is widely investigated in academic literature. Empirical studies on the value creation abilities of ERM and internal control suggest that there is a positi

6、ve relation between value creation, internal control and ERM. These studies reveal that firm performance and value are enhanced by high-quality ERM adoption and implementation. Using different identifier of ERM such as Standard and Poors risk management ratings or presence of a Chief Risk Officer, t

7、he findings of empirical studies reveal that higher ERM quality is associated with less resource constraint, better corporate governance and better accounting performance. Additionally academic studies indicate that the risk-based communication is reinforced with ERM implication.Keywords: Enterprise

8、 risk management , Internal control , Value creation1.IntroductionChanging business and operating environments, increased competition, technology driven, global scale and complex structure of companies have increased the importance of effective internal control and risk management. Enterprise risk m

9、anagement (ERM) is a process that is viewed today as an indicator for optimal achievement of companies mission and execution of its strategy. This is also a coping mechanism vis-a-vis new demand for reporting purposes and additional compliance mandate placed on organizations to have effective intern

10、al control and risk management. Rating agencies e.g. Standard & Poors have included ERM assessment in ratings of insurance companies since 2007. Furthermore the stakeholders demand for more transparency and accountability on the business decisions and governance forces enterprises to have effective

11、internal control and ERM. Committee of Sponsoring Organizations of Treadway Commission (COSO) has released two frameworks provide guidance for management in implementing and evaluating effective enterprise risk management and internal control processes, leading to the improvement of organizational p

12、erformance and governance. These are COSOs Internal ControlIntegrated Framework and COSOs Enterprise Risk ManagementIntegrated Framework.COSO guidance is recognized as being globally and its integrated frameworks are viewed as being the principal tools that enable organizations to enhance their capa

13、city in dealing with uncertainty that presents both risk and opportunity with the potential to erode or enhance value.Proponents of COSOs ERM Integrated Framework describe this framework as “a world-level template for best practice”, and claim that ERM used by management to strengthen an organizatio

14、n ability to manage uncertainty and to consider how much risk to accept as it strives to increase stakeholder value. Additionally the Internal ControlIntegrated Framework is a viable and suitable framework for designing, implementing, conducting and assessing the effectiveness of internal control an

15、d for reporting. COSOs principal argument is that the essential prerequisites of firms long term success are good risk management and internal control (DeLoach and Thomson 2014).While internal control has been always an important field for internal and external audit, risk management has been a vita

16、l concern on the fields of finance and insurance but it is received widespread attention following accounting and corporate scandals in the beginning 2000s and 2008 global crisis (Wu et al. 2015). Section 404 of Sarbanes-Oxley Act and its impacts and repercussions on global capital markets have put

17、the spotlight on COSOs Internal Control Framework and the recent economic crisis has heightened considerably the importance of ERM (Landsittel and Rittenberg 2010).Grounded on the literature review on ERM this paper aims to analyze the extent and the effectiveness of internal control as well as ERM

18、and to explore their connection with the value creation. A theoretical lens is used to discuss whether effective internal control and ERM enhance performance and increase value creation ability. The remainder of the paper is presented in three sections. Section 2 expands upon the COSO Integrated Fra

19、meworks. This is followed by the related literature that provides an overview of empirical research findings on internal control and enterprise risk management. The fourth and final section provides a conclusion providing some final comments.2.COSO Integrated FrameworksWhether applied individually o

20、r together, COSO frameworks are the principal guidance used by organizations to address internal and external pressures placed on them to have effective internal control and risk management. Originally formed in 1985, COSO is voluntary private sector initiative dedicated to improve organizational pe

21、rformance and governance through effective internal control, enterprise risk management, and fraud deterrence. Its sponsoring organizations are the Institute of Internal Auditors, the American Accounting Association, and the American Institute of Certified Public Accountants, Financial Executives In

22、ternational, and the Institute of Management Accountants.COSOs first Internal Control Framework is released in 1992 and is admitted widely as a recognized standard for developing and maintaining effective and efficient internal control. On May 14, 2013, as a result of multiyear project, COSO updated

23、 this Framework to include enhancements and clarifications for users.COSO (2013a, p. 3) defines internal control as “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 followin

24、g categories:Effectiveness and efficiency of operationsReliability of financial reportingCompliance with applicable laws and regulations”.There is a growing support for the general argument that the effectiveness of internal control is a crucial and challenging system for organizations. COSOs Intern

25、al Control Framework is developed in expecting to help and support organizations to design, implement, conduct and assess these systems of internal control. Components, objectives and entity levels presented three dimensions of internal control. These are presented in Table 1.Table 1 Three dimension

26、s of internal controlComponentsObjectivesOrganizational levelsControl environmentsOperationsEntity levelRisk assessmentReportingDivisionControl activitiesComplianceOperating unitInformation and communicationFunctionMonitoring activitiesSource: COSO (1992)The strength of the internal control system i

27、s to improve organizations achievements of their objectives through providing effectiveness and efficiency of their operations, reliability of their financial reporting and compliance with applicable laws and regulations. Internal control system needs to be assessed regularly to check its effectiven

28、ess. There are 17 relevant principles associated with the internal components. These are presented in Table 2.Table 2 Principles of internal control17 Principals by internal control componentsControl environment1.Commitment to integrity and ethical values2.Oversight of the development and performanc

29、e of internal control3.Establishment of structures, reporting, authorities and responsibilities4.Commitment to competence5.Accountability Risk assessment6.Suitable objectives7.Risk identification and analysis8.Assessment of fraud risk9.Identification and analysis of significant change Control activi

30、tiesControl activities10.Selection and development of control activities11.Selection and development of general controls over technology12.Deployment through policies and procedures Information and communication13.Use of relevant information14.Internal communication15.External communication Monitori

31、ng16.Conduct of ongoing and/or separate evaluations17.Evaluation and communication of deficienciesSource: COSO (2013b) Internal Control Integrated Framework PosterAnother area that COSO provides guidance is risk management that organizations need to effectively deal with uncertainty for optimal achi

32、evement of their mission and execution of their strategy. ERM Integrated Framework is developed as a process, ongoing and flowing through the enterprise that comprises aligning risk appetite and strategy, improving risk responses of the entity and seizing opportunities. According to Arnold et al. (2015), this strategic approach to the risk management concentrates on the opportunity side of risk identification and response.ERM is defined by COSO (2004, p. 4) as “a process, affected by an entitys board of directors