Curruption in Russia Research Paper Example | Topics and Well Written Essays - 1250 words

Curruption in Russia - Research Paper Example It has been reported that $35 billion were stolen from government funds in 2010. Corruption in Russia has put a massive burden on the economy and the society and is badly affecting the country as a whole. It has slackened the growth of the economy, and has devalued the government’s efforts to establish a strong infrastructure and a social welfare system. It is mostly fueled by Russia’s weak control over the government sectors and the judiciary system as a whole. Unfortunately, this phenomenon cannot be controlled without threatening the lifestyle and regime of the influential people in the country, who control a large share of the country’s economy. A well-governed lawful state is the only hope to reduce corruption in the country, but it cannot be established without the support of the elite society in the country. The fact that a new system of government has to be formed by breaking the old structure has daunted all past presidents of the country, and has made t hem even more reluctant to bring changes in the country. (Corruption Grows in Russia) Foreign investors have concluded that Russia is a very risky place to invest their money, which has come as a big blow to the country’s economy. Foreign investors are continuously being cheated and plundered, which has made them ever more reluctant to invest. Hermitage Capital Management, one of the largest investors in the Russian stock market, was occupied in a case that showed the ever-increasing corruption in the Russian justice system, and the level its credibility. Hermitage has accused the Russian judiciary and the police force, to have taken bribes from local gangsters, in order to sell three of Hermitage’s Russian subsidiaries. Furthermore, these subsidiaries were used to steal $230 million from the Russian budget. Hermitage has also informed the Russian State Audit Chamber, of other cases where similar fraud has occured with other companies, which ultimately cost the Russian budget a loss of $240 million. Hermitage has also declared that all these frauds were interlinked, and the police, judges and organized criminal groups, were all involved in the conspiracy. (The Hermitage case and corruption in Russia). There have been numerous other corruption cases regarding the Russian government. In 2010, The U.S. Justice Department revealed documents, which accused the German carmaker Daimler to have paid the Russian government officials, millions of euros in bribe. This was to seal the sales of patrol cars for the police and sedans for the presidential motorcade. For some time, there was no reaction from the Russian government, and things remained quiet. At last, Russian Ministry of Interior, declared an investigation regarding car sales and purchase in the recent year. Although, some government officials, who promised to solve it, met this Daimler case with much vigor the case remains one of the foremost examples of the corruption existing in Russia, and how vulnerable the government officials are to bribes and other forms of corruption. In addition, in 2007, prosecutors in Germany, who were accused of taking bribes from the multi-national company, Siemens, revealed numerous names of Russian government officials. (Russia Slow to Pick Up the Lead in Bribery Cases) Corruption in Russia is not only affecting the economy, but is also slowing down the country’s transition from communism to capitalism. Russia is still recovering from its communism policies, but the

Internal Control System Essay Example | Topics and Well Written Essays - 3250 words

Internal Control System - Essay Example Internal Auditing is defined as an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization to accomplish its objectives by evolving a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. The internal audit activity evaluates the adequacy and effectiveness of controls that encompass the organization's governance, operations, and information systems (Arens, Loebbecke, Lemon, & Splettstoesser, 2006). Internal audit reviews include the reliability and integrity of financial and operational information, effectiveness and efficiency of operations, safeguarding of assets, and compliance with laws, regulations, and contracts. These reviews ascertain the extent to which operating and program goals and objectives have been established and whether they conform to the requirements of the organization. It also examines the extent to which results are consistent with established goals and objectives and whether operations and programs are implemented or performed as intended. One of the primary responsibilities of internal auditing is the assessment of internal control system of a company. ... It also examines the extent to which results are consistent with established goals and objectives and whether operations and programs are implemented or performed as intended. One of the primary responsibilities of internal auditing is the assessment of internal control system of a company. The French Institute of Chartered Accountants defines internal control "as a set of security measures which contribute to the control of a company. Its aim is to ensure, on the other hand, the security and safeguard of assets and the quality of information, on the other hand, the application of instructions given by the Senior management, and to encourage improvements in performances. It is evidenced through the organisation, methods, and procedures for each of the company's activities, so as to ensure the continuity of that company." There are two identified types of controls, Preventive and Defective Controls. Preventive controls are intended to foil errors or irregularities from happening. It is a positive control that helps avert losses. On the other hand, detective controls are devised to identify or uncover inaccuracy and irregularities after they have occurred. Both of these controls play an important role to an effective control system. Preventive controls are essential because they are proactive and emphasize quality. However, detective controls play a critical role in providing evidence that the preventive controls are working and thwarts losses. Internal Control Objectives There are seven pre-defined internal control objectives, namely, authorization, completeness, accuracy, validity, physical safeguards & security, error handling, and segregation of duties. 1) Accountability, authorization and approval- the