Nama:Adrian Wijaya

Nim:120211505
FEB/Akuntansi A

Theme : Liabilitas

Liabilities are present liabilities of the company that arise from past events, settlements of
which are expected to result in an outflow of company resources in realizing economic benefits.
Liabilities are divided into 2 types, namely long-term liabilities and short-term liabilities. Types
of short-term liabilities are trade payables, notes payable, dividend payable, salary payable, and
so on. Meanwhile, long-term liabilities are employee benefits liabilities, long-term lease
payables. In liabilities, there are several characteristics such as debt manifesting a duty or
responsibility to one or more business entities, which requires settlement with the possibility of
transfer or use of assets on a certain date, by the occurrence of certain events or by request, these
duties or responsibilities require a company to perform sacrifices in the future so that the
company does not have at all or has little consideration to avoid these sacrifices, Transactions or
events that require the entity to make sacrifices have occurred. Liabilities also have the
characteristics of economic benefit sacrifice, which the object must contain the business entity to
pay off at the expense of sufficient economic benefits in the future. What is meant by sacrifice of
future economic resources that forms an obligation because to become an obligation such
sacrifice must be forcing and not on the basis of a policy to decide both in terms of the amount of
rupiah and at the time of the transfer. A necessity at the expense of future economic resources
cannot be obligatory if it is uncertain. Obligations of liabilitas include contractual obligations,
constructive obligations, requirements for fairness, and conditional obligations.
The recognition of a liability is recognized when the obligation is binding as a result of a
previous transaction. In liabilities there are provisions recognized only for liabilities arising from
past events, which are separate from the entity's future actions, for example, namely the cost of
restoring environmental pollution. In calculating a liability there is a best estimate, risk and
uncertainty, present value, future events, and planned asset disposal. A good estimate and the
risk of uncertainty, that is, the amount recognized as a provision is the best estimate of the
expenditure required to settle the obligation at the end of the reporting period. Present value is
the present value of the estimated expenses required to complete the obligation. Future events
that can affect the amount required to settle an obligation should be reflected in the provision
amount if there is objective evidence. The plan to dispose of assets, namely the benefits of the
relationship with the plan to dispose of assets, should not be considered in calculating a
provision. In addition, in the liability assessment is the determination of the amount of rupiah
that must be sacrificed if at that time the obligation must be paid. Liabilities must of course make
repayments which is an action taken by the business entity to be free from obligations that can be
carried out directly to the indebted party.
1. Tittle : The Role of Internal Auditing in Enhancing Good Corporate Governance Practice
in an Organization
Publisher : Department of Accounting, Federal University, Otuoke, Bayelstate, Nigeria
Author : Omolayo KE and Jacob RB
The Publish date of the Arcticle Journal : 2017

2. Purpose :
This journal explains that the purpose of corporate governance is to ensure proper
financial reporting. Corporate governance is a procedure and process in accordance with
something directed and controlled. Governance tends to be an efficient use of ensuring
accountability for resource management. Where with the existence of an internal audit
that can improve governance practices in the banking sector. The survey research shows
that between the IAF and bank performance there is a higher significant positive
relationship in operational efficiency. The relevance of corporate governance ensures that
the honesty reporting system cannot be suppressed as much as possible. Audit is
responsible for internal control through the assistance of an internal auditor. Internal audit
functions for the independent assessment established by management in objectively
reviewing operations, evaluating, and reporting on internal control. The purpose of this is
to improve internal mechanisms based on the relationship between corporate governance,
internal control and auditing, as well as the quality of financial reporting. Corporate
governance seeks to implement multiple risk analysis, verification, and control systems.
This is intended to develop effective and efficient management and governance supported
by an internal audit. In this way, compliance with corporate governance practices can
increase trust in investors, reduce the cost of capital, and support the functioning of
financial markets.

Methodology used by the Article :

 The methodology used in this article is quantitative and qualitative research.
Quantitative research is systematic research that aims to develop and use theories relating
to a situation. As is the case in corporate governance in increasing efficiency using
agency theory which shows that a positive correlation between an organization's
performance and governance is that efficient governance is implemented in better
operations and high market value as a force in good monitoring of investment in projects.
which has NPV and reduces waste. Meanwhile, qualitative research is descriptive
research. As in this article, we collect qualitative data through an email questionnaire
which aims to provide answers to research questions. The questionnaire was administered
to respondents (professionals involved in the practice and governance of internal audit in
certain banks in Nigeria). This method is carried out to ensure the reliability and validity
of the data collected. The questionnaire chosen is an email questionnaire which will be
analyzed on different themes such as staff support, reporting mechanisms, performance,
roles, and constraints.

Three Theories used in the Article :

a. Levin theory which states that when there are good companies there is good
governance, banks efficiently mobilize and allocate funds. This reduces the capital
cost of the firm, increases capital formation and stimulates productivity growth. The
benefit of this theory is that it improves corporate governance that includes more than
just a greater personal sense of accomplishment.

b. Coben and Hannon use a public supervisory board perspective to define corporate
governance as a supervisory activity carried out by the board of directors and the
audit committee to ensure the integrity of the financial reporting process. The purpose
of this theory describes corporate governance in which it appears that the internal and
external aspects provide an instrument through which corporate goals are set,
monitored, and achieved. As stated, the company has underlined the important role of
directors in promoting good corporate governance practices.
 c. The relevance emphasized in Mckinsey 2002 states that corporate governance is the
core of investment decisions. Where investors tend to place corporate governance in
line with financial indicators when evaluating investment decisions. Corporate
governance aims as a tool to achieve goals. There are several factors that guide the
achievement of his goals. One of them is an effective internal audit function that has
an independent assessment function by management to review operations.

3. Suggestion stated by the Authors for Further Researchers :

In an article entitled The Role of Internal Auditing in Enhancing Good Corporate
Governance Practice in an Organization, there are several suggestions from the author to
conduct further research by including other data sources for inclusive studies, as follows:
a. The IAF should continue to be supported by management and
board audit committee in terms of adequate staffing, training and
compensation for effectiveness.
b. The IAF has taken a more central and thus, internal position
auditors must at all times carry out their duties with professionalism,
objectivity and fair play.
c. Taking into account the position of the bank in the economy, regulation
authorities in Nigeria (CBN, SEC, etc.) must always ensure that it is strict
compliance with the guidelines and principles of corporate governance by
bank.
d. The concept of corporate governance is so broad that it is advisable to conduct
research on the IAF from corporate governance committees to public oversight of
corporate governance.

4. Summary :
Corporate governance is a procedure and process that is in accordance with
directed and controlled matters which is one of the most important factors in ensuring
effective and efficient financial reporting. Corporate governance has objectives as a
means to an end. One of the factors to achieve the goal is the existence of an effective
internal audit function (IAF). The internal audit function is an independent assessment
function by management to objectively review operations, examine, evaluate, and report
internal control. Failure in financial reporting is certainly caused by weak internal
controls. So with this explicitly the company must make disclosures in the control
system.
Cohen and Hannon use the perspective of the Public Supervisory Board to define
corporate governance as 'the supervisory activity performed by the board of directors and
the audit committee to ensure the integrity of the financial reporting process'. the purpose
of this definition is what is corporate governance. Internal audit is inevitably a
mechanism designed to secure accountability to be the focus of arguments for reforms in
government. Internal audit is an important control mechanism used by both private and
public organizations. Control mechanisms are processes that are put in place to monitor,
direct, promote or hold back the various activities of an organization to ensure that
objectives are met.
The chartered Institute of Internal Auditors (IIA) defines internal audit 'as an
independent and objective assurance and consulting activity designed to add value and
enhance an organization's operations. Its purpose is to evaluate and improve the
effectiveness of risk management, control and governance processes. Internal audit has
one of the objectives of improving the organization effectively and efficiently through
constructive internal examinations of processes, policies, and procedures for financial
correction. One of the banking industries experiencing critical problems in the financial
services sector globally is Nigeria. The failures experienced in the past have been
important successes to promote good corporate governance practices in the Nigerian
banking sector.
In the relevance of corporate governance practices, Mckinsey's review of
investors shows that the majority of investors are ready to pay a premium for companies
that exhibit high governance standards. For example, leprosy in North America and
Western Europe is around 12-14%. Compliance with corporate governance practices can
increase domestic investor confidence, reduce the cost of capital, and support the
functioning of financial markets. IAF is one of the six pillars of the corporate governance
structure in addition to the Board of Directors, CEO, Audit Committee, External Auditor,
and Public Supervisory Board which is able to collaborate with corporate governance
mechanisms in improving corporate governance processes.