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Internal control weaknesses in a cooperative body: Malaysian experience

Author

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  • Shamsul Anuar Abd Rahim
  • Anuar Nawawi
  • Ahmad Saiful Azlin Puteh Salin

Abstract

The purpose of this study is to examine the current state of the internal control practices in the cooperative body, an organisation area that has always been neglected in governance empirical research. This study also provides recommendations to overcome those weaknesses. A case study approach was selected for this study by selecting one cooperative body as a case. This study employed document analysis as the method of data collection and the data were analysed by using the latest COSO Internal Control - Integrated Framework. This study found that the selected cooperative body had very poor internal control. There was low data integrity where too many errors were detected in both the financial and non-financial data, while its daily transactions were recorded by using manual tools but without proper security leading to possible fraud. Furthermore, the effort to automate the system by acquiring a new software program has miserably failed due to incompetency of the workforce. To worsen matters, the employees also did not appreciate the importance of internal control.

Suggested Citation

  • Shamsul Anuar Abd Rahim & Anuar Nawawi & Ahmad Saiful Azlin Puteh Salin, 2017. "Internal control weaknesses in a cooperative body: Malaysian experience," International Journal of Management Practice, Inderscience Enterprises Ltd, vol. 10(2), pages 131-151.
    • Handle: RePEc:ids:ijmpra:v:10:y:2017:i:2:p:131-151
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    Citations

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    Cited by:

    1. Elvir Munirovich Akhmetshin & Vladimir Lvovich Vasilev & Denis Sergeevich Mironov & Elena Ivanovna Zatsarinnaya & Marina Viktorovna Romanova & Alexei Valerievich Yumashev, 2018. "Internal Control System in Enterprise Management: Analysis and Interaction Matrices," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 728-740.
    2. Florin BOGHEAN, 2022. "The Interdependence Between Controlling And Management - A Prerequisite For Achieving Operational Objectives," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 10(3), pages 74-79, October.
    3. Vladislav Olegovych Gerasimov & Rustam Ilfarovich Sharafutdinov & Rustam Ilfarovich Sharafutdinov & Vladimir Vladimirovich Kolmakov & Elmira Arsenovna Erzinkyan & Aleksandr Alexandrovich Adamenko & An, 2019. "Control in the human capital management system in the strategy of innovative development of a region," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(2), pages 1074-1088, December.
    4. Ahmad Saiful Azlin Puteh Salin, 2017. "Malaysian Private Entities Reporting Standards - Benefits and Challenges to SMEs," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(11), pages 1302-1320, November.
    5. Nurul Nazlia Jamil & Nathasa Mazna Ramli & Ainulashikin Marzuki & Nurul Nadiah Ahmad, 2021. "Compliance Factors of Malaysian Private Entity Reporting Standard (MPERS) by Small Medium Enterprises (SMEs)," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(3), pages 149-156, May.

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