Internal Control System and Its Influence on Organizational Effectiveness: Case Study of a Village Credit Institution (LPD) in Tabanan Regency

DOI

10.2991/978-94-6463-622-2_13How to use a DOI?

Keywords

Influence; Internal Control System; Organizational Effectiveness

Abstract

Internal control is essential to corporate governance, especially with the increasing use of information technology and globalization. Poor internal control mechanisms, on the other hand, create increased operational inefficiencies, resulting in theft, loss of revenue, and fraudulent conspiracies An effective internal control system assists a company in achieving its goals, providing reliable financial information, and safeguarding assets and other critical resources. It also helps monitor and evaluate an organization’s effectiveness to ensure efficiency and effectiveness. This research examines the Internal Control System and its influence on organizational effectiveness. The study was carried out at the Village Credit Institution (LPD) in Tabanan Regency, with LPD employees and managers participating as respondents. Data was collected using a questionnaire, analyzed using variance-based SEM, and processed using Partial Least Square (PLS). The research results found that the control environment, control activities, risk assessment, and monitoring activities positively and significantly affect organizational effectiveness. Meanwhile, information and communication do not significantly affect organizational effectiveness in LPD Tabanan Regency.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ida Bagus Anom Yasa
AU  - I Ketut Sukayasa
AU  - Ni Made Mega Abdi Utami
AU  - I Made Sudana
AU  - Ni Komang Swasti Dewi
PY  - 2024
DA  - 2024/12/31
TI  - Internal Control System and Its Influence on Organizational Effectiveness: Case Study of a Village Credit Institution (LPD) in Tabanan Regency
BT  - Proceedings of the International Conference on Sustainable Green Tourism Applied Science - Social Applied Science 2024 (ICoSTAS-SAS 2024)
PB  - Atlantis Press
SP  - 107
EP  - 116
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-622-2_13
DO  - 10.2991/978-94-6463-622-2_13
ID  - Yasa2024
ER  -