Aug 2026· Journal of Economic, Finance Research and Review· Vol 02· 0 citations
TL;DR
The present study is a synthesis of multidisciplinary literature that would create a combined conceptual framework of how data-driven monitoring systems would improve the internal financial controls within US government agencies.
Abstract
The ever-growing complexity of public financial systems and constraints of the conventional systems of internal control have increased the necessity of more responsive and even smarter methods of oversight. The present study is a synthesis of multidisciplinary literature that would create a combined conceptual framework of how data-driven monitoring systems would improve the internal financial controls within US government agencies. This study adopts a structured narrative review approach, systematically identifying and synthesizing recent peer-reviewed literature (2020–2025) across accounting, information systems, and public administration. Based on the theory of internal control and innovations in the field of big data analytics, machine learning, and continuous audits, the review shows that the capabilities related to data enable changing the traditional control systems that are characterized by being immobile, reactive systems into dynamic and real-time governance systems that enhance the ability to detect risks, promote transparency, and hold accountable. The paper also defines the main institutional drivers, barriers to implementation and governance issues that influence adoption and outlines gaps in empirical verification and AI regulation that need more careful consideration. With this review bridging the accounting, information systems, and public administration perspectives, the review adds value to the theory by expanding the internal control to the area of digital governance and provides valuable contributions to the policymakers and practitioners. The results emphasize that the future of financial governance by the state relies upon the strategic incorporation of information-based surveillance along with strong institutional and ethical frameworks.
The study concludes that strengthening fraud detection and financial reporting integrity requires integrating analytics and internal controls within a unified governance framework supported by continuous monitoring, institutional accountability, and transparent oversight mechanisms.
Francesca Nyarkoa Kobla, Jessica Fosua Agyei· Magna Scientia Advanced Biol...· 0 citations
The integrity of financial reporting constitutes a fundamental pillar of corporate governance, particularly for state-owned enterprises operating under heightened public scrutiny. PT Hutama Karya (Persero), a major Indonesian state-owned infrastructure enterprise, faces significant challenges in its financial consolidation process due to heavy reliance on manual procedures despite SAP implementation at the entity level. This dependency exposes the organization to human error, inconsistent accounting policies, and potential fraud risks. This study evaluates the design effectiveness of Internal Control over Financial Reporting within the Financial Statement Closing Process at PT Hutama Karya using a qualitative case study methodology grounded in the COSO 2013 framework. Data from semi-structured interviews with eight key stakeholders, questionnaire responses from financial and risk management personnel, and comprehensive document analysis were thematically assessed across the five COSO components. The findings reveal that the current ICFR design is not fully effective, with critical deficiencies identified in manual process dependency, system integration gaps, competency limitations, inadequate IT general controls, and restricted monitoring scope. Four interrelated root causes underpin these deficiencies: technology-process mismatch between entity-level SAP and group-level Excel consolidation; competency and awareness gaps across all three lines of defense; inadequate IT general controls including absence of digital approval workflows; and monitoring scope limitations driven by resource constraints. The study proposes an enhanced, technology-integrated ICFR framework anchored on automation, integration, standardization, real-time monitoring, and competency development. A phased implementation roadmap is developed to transform the consolidation process, aiming to significantly reduce consolidation cycle times, improve data timeliness, minimize control deficiencies, and strengthen external audit readiness. This study contributes to the internal control literature by extending the COSO framework to complex state-owned enterprise contexts, identifying "technology-process mismatch" as a distinct theoretical construct, developing a competency framework for ICFR implementation, and refining the Three Lines of Defense model through identification of the "testing gap." The enhanced framework provides reasonable assurance over financial reporting, ultimately strengthening corporate governance and stakeholder confidence in the organization's financial disclosures.
M. Rizky, S. K. Wiryono, Taufik Faturohman· Journal of business and mana...· 0 citations
This study examines the role of standardized financial manuals in enhancing internal control systems within Uganda's public sector organizations. Rooted in the evolution of financial management reforms globally and regionally, Uganda's experience reflects both progress and challenges in institutionalizing internal controls through uniform financial procedures. Despite widespread adoption of manuals such as the Public Financial Management Manual and Local Government Financial and Accounting Manual, inconsistencies in implementation remain, especially at local government levels. Employing a descriptive cross-sectional mixed-methods approach, the research involved 65 finance professionals from selected ministries and local government units in Kampala. Quantitative data from structured questionnaires and qualitative insights from interviews revealed that standardized financial manuals significantly contribute to improved asset safeguarding, fraud prevention, compliance, and financial reporting accuracy. The regression analysis indicated a strong positive relationship (R = 0.796) between standardized financial manuals and internal control systems within Uganda's public sector organizations, confirming that standardized financial manuals account for 63.3% of the variance in internal control system performance. The study concludes that while financial manuals are vital inputs for internal control systems, their impact is dependent on institutional capacity and behavioral integration. The study recommends regular manual updates, comprehensive staff training, leadership engagement, and leveraging information and communication technology platforms for wider accessibility. Consequently, standardized financial manuals serve as critical tools for promoting transparency, accountability, and financial integrity in Uganda's public sector, contributing to enhanced public trust and efficient resource management.
Mark Mbuga Kayongo· International journal of sci...· 0 citations
Sierra Leone presents a paradox that should trouble anyone who studies public financial management reforms in low-income countries. Two decades of sustained investment, five independent Public Expenditure and Financial Accountability (PEFA) assessments and three successive reform strategies have produced genuine achievements: a Treasury Single Account (TSA), an upgraded Integrated Financial Management Information System (IFMIS) covering thirty ministries, departments and agencies, adoption of Cash Basis International Public Sector Accounting Standards (IPSAS), an operational electronic procurement platform and an ‘A’ rating for budget classification in the 2021 to 2022 PEFA assessment. Yet, in December 2025 the Financial Secretary warned publicly that fragmented data systems were bleeding value from payroll and pension administration, observing that “somebody will still continue to benefit from one system while the other system is losing”. This article takes that warning as its organising diagnosis. It argues that Sierra Leone has reached the limits of system-by-system modernisation and that the next generation of reform must treat three agendas as a single problem: interoperability across government financial systems, cyber-security and data protection for the financial information those systems generate, and institutional accountability for how that information is used. The article traces the reform trajectory from the Integrated Public Financial Management Reform Project (2008 to 2013) through the current interoperability roadmap, evaluates the emerging Data Protection and Right to Access Information Act and its unified dual-mandate authority, and analyses the persistent gap between transactional automation and data governance. It then proposes an integrated digital governance framework built on four pillars, digital infrastructure and systems integration, legal and regulatory enablement, institutional capacity and human capital, and oversight with citizen engagement, resting on a cross-cutting foundation of security and data protection by design, with a sequenced sixty-month implementation roadmap ‘costed’ against realistic institutional capacity and the financing envelope available from the IMF Extended Credit Facility, World Bank and African Development Bank operations. Sierra Leone’s experiment in fusing access to information and data protection within one authority, and in wiring anti-corruption oversight directly into digital PFM systems, offers lessons of genuine comparative significance for the Global South. JEL: M40, M41, M48, G00, H00
J. Conteh, Musa Abdullah Kargbo, Abdul Rahman N’Jai et al.· European Journal of Economic...· 0 citations
Internal control systems are the key to responsive governance. In Nepal’s public sector, these controls are merely compliance-based and focus on output, emphasizing procedural adherence and ex-post audit over substantive accountability and governance outcomes. Up to FY 2023/24, the annual financial irregularities exceed NPR 90 billion, and cumulative unsettled audit observations are over NPR 700 billion, where over 40% of capital expenditure is concentrated in the final month of the fiscal year. The study aims to explore the relationship between a compliance-oriented internal control system and administrative responsiveness. To institutionalize accountability within the public organization, the COSO framework is being used. Quantitative research design is used in this study, and data were obtained from published reports of different public institutions. The analysis is carried out by integrating quantitative analysis of an Internal Control Weakness Index (ICWI) with qualitative policy analysis. The ICWI is constructed from longitudinal data on financial arrears, Commission for the Investigation of Abuse of Authority (CIAA) cases, and capital expenditure absorption rates spanning fiscal years 2018/19 to 2023/24. The result shows that there is a significant positive correlation between ICWI and both arrears (r = 0.666) and CIAA cases (r = 0.629), and a significant negative correlation with capital expenditure (r = -0.641). Furthermore, Regression analysis indicates that the ICWI explains approximately 44.4% of the variance in total arrears (R² = 0.444). empirical analysis suggests that responsive control mechanism in public administration of Nepal is essential to promote fiscal sustainability and accountability throughout the government institution.
Manju Kumari Jaisi· Academia Research Journal· 0 citations
The rapid digital transformation of business processes has significantly altered the landscape of financial reporting, giving rise to real-time financial reporting (RTFR) as a transformative innovation in accounting practice. Unlike traditional periodic reporting systems, RTFR facilitates continuous access to financial information through the integration of cloud computing, automation, artificial intelligence, and enterprise resource planning systems. This study systematically reviews extant literature on the advantages and challenges associated with RTFR adoption in contemporary organizations. Drawing on Diffusion of Innovation Theory as the underpinning theoretical framework, the study adopts a qualitative systematic literature review approach to synthesize findings from peer-reviewed journal articles, industry reports, and regulatory publications published between 2018 and 2025. The review reveals that RTFR enhances organizational efficiency, transparency, corporate governance, and strategic decision-making by providing timely and accurate financial information. However, the adoption of RTFR is constrained by significant challenges, including cybersecurity risks, regulatory and compliance complexities, organizational readiness deficiencies, and substantial implementation costs, particularly among small and medium-sized enterprises (SMEs). The findings further indicate that contextual factors such as firm size, industry characteristics, and geographical location influence adoption patterns and outcomes. The study contributes to accounting literature by integrating diverse perspectives on RTFR adoption, identifying critical knowledge gaps, and proposing directions for future research. It is recommended that organizations adopt phased implementation strategies, strengthen cybersecurity infrastructure, and invest in employee training, while policymakers should modernize regulatory frameworks to support continuous financial disclosure.
Eyo Bassey Ekpe, Glory Tony Effiong, Owan Harold-Joe Eban et al.· International journal of res...· 0 citations
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