IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v12y2024i4p78-d1365886.html
   My bibliography  Save this article

Enhancing Internal Control Mechanisms in Local Government Organizations: A Crucial Step towards Mitigating Corruption and Ensuring Economic Development

Author

Listed:
  • Paraskevi Boufounou

    (Department of Economics, Faculty of Economics and Political Sciences, National and Kapodistrian University of Athens, 1 Sophocleous Str., 10559 Athens, Greece)

  • Nikolaos Eriotis

    (Department of Business Administration, Faculty of Economics and Political Sciences, National and Kapodistrian University of Athens, 1 Sophocleous Str., 10559 Athens, Greece)

  • Theodoros Kounadeas

    (Department of Business Administration, Faculty of Economics and Political Sciences, National and Kapodistrian University of Athens, 1 Sophocleous Str., 10559 Athens, Greece)

  • Panagiotis Argyropoulos

    (Department of Business Administration, Faculty of Economics and Political Sciences, National and Kapodistrian University of Athens, 1 Sophocleous Str., 10559 Athens, Greece)

  • John Poulopoulos

    (Department of Economics, Faculty of Economics and Political Sciences, National and Kapodistrian University of Athens, 1 Sophocleous Str., 10559 Athens, Greece)

Abstract

Corruption poses a significant challenge to economic development and governance worldwide, with its detrimental effects permeating various levels of society. In the context of Greece, where corruption has been a longstanding issue, the role of internal audit mechanisms within local government organizations (LGOs) emerges as paramount. This paper presents a comprehensive analysis of the internal control landscape within LGO revenue departments, focusing on factors influencing its effectiveness and proposing strategies for improvement. Drawing upon survey data and regression analyses, this study highlights the crucial role of robust internal control mechanisms in combating corruption and fostering economic development. The findings underscore the importance of competent personnel, legislative compliance, interdepartmental collaboration, and technology utilization in enhancing internal control practices. Despite existing legislation, gaps in internal control implementation persist, including understaffing, inadequate procedures, and limited access to information. This study emphasizes the transformative potential of effective internal audit measures in mitigating corruption at the local level, thereby contributing to broader economic growth and societal well-being. Recommendations for strengthening the internal control structures within LGOs include the formal establishment of internal audit functions, adherence to professional standards, and the promotion of information system utilization. By addressing the corruption and inefficiencies within LGOs, this research underscores the pivotal role of institutional effectiveness in promoting transparency, accountability, and sustainable economic progress.

Suggested Citation

  • Paraskevi Boufounou & Nikolaos Eriotis & Theodoros Kounadeas & Panagiotis Argyropoulos & John Poulopoulos, 2024. "Enhancing Internal Control Mechanisms in Local Government Organizations: A Crucial Step towards Mitigating Corruption and Ensuring Economic Development," Economies, MDPI, vol. 12(4), pages 1-21, March.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:4:p:78-:d:1365886
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/12/4/78/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/12/4/78/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kamalahmadi, Masoud & Parast, Mahour Mellat, 2016. "A review of the literature on the principles of enterprise and supply chain resilience: Major findings and directions for future research," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 116-133.
    2. Chaoyang Tu & Zhenyu Chen & Zheng Peng & Yasir Habib, 2023. "The Efficiency of Rural Public Finance Inputs in Promoting Rural Revitalization: Empirical Analysis Based on Henan Province, China," Review of Economic Assessment, Anser Press, vol. 2(1), pages 73-86, April.
    3. Lawrence J. Abbott & Brian Daugherty & Susan Parker & Gary F. Peters, 2016. "Internal Audit Quality and Financial Reporting Quality: The Joint Importance of Independence and Competence," Journal of Accounting Research, Wiley Blackwell, vol. 54(1), pages 3-40, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aziz Barhmi & Omar Hajaji, 2023. "Multidisciplinary Approach to Supply Chain Resilience: Conceptualization and Scale Development," Central European Business Review, Prague University of Economics and Business, vol. 2023(5), pages 43-69.
    2. Nan Hu & Xingnan Xue & Ling Liu, 2022. "The impact of air pollution on financial reporting quality: evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 3609-3644, September.
    3. Antonio Zavala-Alcívar & María-José Verdecho & Juan-José Alfaro-Saiz, 2020. "A Conceptual Framework to Manage Resilience and Increase Sustainability in the Supply Chain," Sustainability, MDPI, vol. 12(16), pages 1-38, August.
    4. Barbara Ocicka & Wioletta Mierzejewska & Jakub Brzeziński, 2022. "Creating supply chain resilience during and post-COVID-19 outbreak: the organizational ambidexterity perspective," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 49(1), pages 129-151, March.
    5. Maria Ghufran & Khurram Iqbal Ahmad Khan & Fahim Ullah & Wesam Salah Alaloul & Muhammad Ali Musarat, 2022. "Key Enablers of Resilient and Sustainable Construction Supply Chains: A Systems Thinking Approach," Sustainability, MDPI, vol. 14(19), pages 1-19, September.
    6. Habiba Al‐Shaer & Mahbub Zaman, 2018. "Credibility of sustainability reports: The contribution of audit committees," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 973-986, November.
    7. Chyz, James A. & Eulerich, Marc & Fligge, Benjamin & Romney, Miles A., 2023. "Codetermination and aggressive reporting: Audit committee employee representation, tax aggressiveness, and earnings management," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 51(C).
    8. Peyman Akhavan & Maryam Philsoophian, 2023. "Improving of Supply Chain Collaboration and Performance by Using Block Chain Technology as a Mediating Role and Resilience as a Moderating Variable," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 4561-4582, December.
    9. Bart Kamp, 2021. "Responding to the COVID-19 pandemic: lessons in supply chain management among industrial firms," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 100(02), pages 210-233.
    10. El-Awady Attia & Ali Alarjani & Md. Sharif Uddin & Ahmed Farouk Kineber, 2023. "Determining the Stationary Enablers of Resilient and Sustainable Supply Chains," Sustainability, MDPI, vol. 15(4), pages 1-23, February.
    11. Radebe, Nomkhosi & Chipangamate, Nelson, 2024. "Mining industry risks, and future critical minerals and metals supply chain resilience in emerging markets," Resources Policy, Elsevier, vol. 91(C).
    12. Lei Ji & Chunlin Yuan & Taiwen Feng & Chen Wang, 2020. "Achieving the environmental profits of green supplier integration: The roles of supply chain resilience and knowledge combination," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 978-989, July.
    13. Beatriz Acero & Maria Jesus Saenz & Davide Luzzini, 2022. "Introducing synchromodality: One missing link between transportation and supply chain management," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(1), pages 51-64, January.
    14. Doris A. Behrens & Marion S. Rauner & Margit Sommersguter-Reichmann, 2022. "Why Resilience in Health Care Systems is More than Coping with Disasters: Implications for Health Care Policy," Schmalenbach Journal of Business Research, Springer, vol. 74(4), pages 465-495, December.
    15. Belhadi, Amine & Kamble, Sachin S. & Venkatesh, Mani & Chiappetta Jabbour, Charbel Jose & Benkhati, Imane, 2022. "Building supply chain resilience and efficiency through additive manufacturing: An ambidextrous perspective on the dynamic capability view," International Journal of Production Economics, Elsevier, vol. 249(C).
    16. Gholami-Zanjani, Seyed Mohammad & Klibi, Walid & Jabalameli, Mohammad Saeed & Pishvaee, Mir Saman, 2021. "The design of resilient food supply chain networks prone to epidemic disruptions," International Journal of Production Economics, Elsevier, vol. 233(C).
    17. Chih-Hung Hsu & An-Yuan Chang & Ting-Yi Zhang & Wei-Da Lin & Wan-Ling Liu, 2021. "Deploying Resilience Enablers to Mitigate Risks in Sustainable Fashion Supply Chains," Sustainability, MDPI, vol. 13(5), pages 1-24, March.
    18. Ashfaque Banbhan & Xinsheng Cheng & Nizam Ud Din, 2018. "Financially Qualified Members in an Upper Echelon and Their Relationship with Corporate Sustainability: Evidence from an Emerging Economy," Sustainability, MDPI, vol. 10(12), pages 1-19, December.
    19. Shashi & Piera Centobelli & Roberto Cerchione & Myriam Ertz, 2020. "Managing supply chain resilience to pursue business and environmental strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1215-1246, March.
    20. Manupati, V.K. & Schoenherr, Tobias & Ramkumar, M. & Panigrahi, Suraj & Sharma, Yash & Mishra, Prakriti, 2022. "Recovery strategies for a disrupted supply chain network: Leveraging blockchain technology in pre- and post-disruption scenarios," International Journal of Production Economics, Elsevier, vol. 245(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:12:y:2024:i:4:p:78-:d:1365886. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.