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3 E's concept: economy, efficiency and effectiveness
Source publication
The purpose of this study is to know the implementation of performance audit and whether the perspective of balance scorecard implemented in Local Government in North Sumatra, Indonesia and know the performance of government in this case APIP related to performance performance audit in local government implement Balance Score Card. The type of rese...
Contexts in source publication
Context 1
... audits also often follow the 3 E economic, efficiency and effectiveness concepts that underlie performance audits. 3 E is described in Figure 1 below: editor@iaeme.com ...
Citations
... In the traditional approach of BSC, a cost-benefit analysis evaluates impacts on financial, customer satisfaction, internal business and learning and growth perspectives (Samasm et al., 2018). The generated scorecard, with fewer than 20 measures, is suitable for a specific problem and is used as a reference to all management levels (Dinçer et al., 2019;Malagueño et al., 2018;Muda et al., 2018) ...
Purpose
The maritime industry is the transport mode that contributes most to air pollution. The International Maritime Organization (IMO) identified the reduction of air pollution by ships as a crucial issue. Since 1 January 2020, ships have had to adopt strategies and new technologies to eliminate air pollution. However, ship compliance with nitrate oxide (NOx) emission restrictions is more challenging. This paper aims to identify ship owners' challenges in investing in new technologies.
Design/methodology/approach
This paper applied a hybrid methodology combining a survey, a balanced scorecard and fuzzy analytic hierarchy process (F-AHP) to identify and evaluate constraints and weights in investment decision-making for NOx technologies. A survey was carried out to validate constraints.
Findings
A survey was carried out, representing 5.1% of Greek-owned ships by deadweight capacity. The findings provide a weighted list of seven crucial technical and economic constraints faced by ship operators. The constraints vary from ship retrofit expenditure to crew training and waste management. Additionally, NOx emission technologies were compared. It was found that liquefied natural gas is the preferred investment option for the survey participants compared with selective catalytic reduction, exhaust gas recirculation and batteries.
Originality/value
Several studies have dealt with the individual technical feasibility of NOx reduction technologies. However, apart from technical feasibility for a shipowner, the selection of a NOx technology has several managerial and safety risks. Therefore, the originality of this paper is to reveal those constraints that have a higher weight on ship owners. With this cost-benefit approach, investment challenges for ship operators are revealed. Policymakers can benefit from the results of the employed methodology.
... Ensuring shareholder satisfaction necessitates dividend distribution, which may pose challenges if cash reserves are insufficient (Rashid, 2020: 64) [17] . The financial dimension, as defined by (Muda et al., 2018: 1327) [12] , encompasses the ability to generate financial resources, achieve financial objectives, and manage financial matters efficiently. Similarly, as noted by (Reda et al., 2019: 505) [18] , the financial dimension acts as a gauge for assessing strategic profitability, influenced by factors such as operating income and return on investment. ...
... Ensuring shareholder satisfaction necessitates dividend distribution, which may pose challenges if cash reserves are insufficient (Rashid, 2020: 64) [17] . The financial dimension, as defined by (Muda et al., 2018: 1327) [12] , encompasses the ability to generate financial resources, achieve financial objectives, and manage financial matters efficiently. Similarly, as noted by (Reda et al., 2019: 505) [18] , the financial dimension acts as a gauge for assessing strategic profitability, influenced by factors such as operating income and return on investment. ...
... Audit operasional atau pemeriksaan operasional disebut juga sebagai audit manajemen. Menurut Muda et al. (2018) audit operasional atau performance audit adalah suatu proses sistematis untuk memperoleh dan mengevaluasi bukti kinerja, program, fungsi atau kegiatan suatu organisasi secara objektif yang dilakukan atas dasar ekonomi dan efisiensi, efektivitas operasional. Audit kinerja dilakukan untuk menentukan bagaimana suatu entitas atau unit kerja mengelola penggunaan sumber daya secara ekonomis, efektif, dan efisien dalam memenuhi misi dan tujuan entitas. ...
Penelitian ini bertujuan untuk menganalisis pengaruh audit operasional dan pengendalian internal terhadap efektivitas kinerja manajemen pergudangan pada PT Tazar Guna Mandiri. Populasi penelitian ini adalah seluruh karyawan PT Tazar Guna Mandiri yang terdiri dari direksi, sekretaris direksi, direktur operasional, direktur keuangan, direktur HRD, divisi penjualan, divisi pergudangan, divisi pengadaan, administrasi, dan accounting, sementara sample penelitian merupakan bagian dari poluasinya, yang dikumpulkan dengan menggunakan metode non-probability sampling yaitu dengan sampling jenuh. Metode analisis yang digunakan adalah metode regresi linier berganda, dengan efektivitas kinerja manajemen pergudangan sebagai variabel terikat, serta pengaruh audit operasional dan pengendalian internal sebagai variabel bebas. Hasil penelitian menunjukkan bahwa variabel audit operasional berpengaruh positif dan signifikan terhadap efektivitas kinerja manajemen pergudangan pada PT. Tazar Guna Mandiri, namun variabel pengendalian internal tidak berpengaruh signifikan terhadap efektivitas kinerja manajemen pergudangan pada PT. Tazar Guna Mandiri. Secara simultan audit operasional dan pengendalian internal berpengaruh positif dan signifikan terhadap efektivitas kinerja manajemen pergudangan pada PT Tazar Guna Mandiri.
... Performance audit is an extension of the financial audit, including economical, efficient, and effective. Auditors who will carry out their activities must obtain information about the organization, including organizational structure, work procedures, information systems, financial reporting, and performance audit management activities that positively impact the program and the entity being audited (Ahonen & Koljonen, 2020;Desmedt et al., 2017;Muda et al., 2018). If an auditor is entering a career as a public accountant, the auditor must first seek professional experience. ...
Existing audit standards must guide auditors in carrying out their profession. Audit standards regulate auditors in compiling reports with good performance and according to the professional code of ethics. The goal of this study was to examine the impact of professional ethics, auditor independence, auditor experience, and auditor professionalism on auditor performance during a pandemic by taking samples from public accounting firms in Jakarta and Surabaya with 170 respondents. Using the Structural Equation Model (SEM), this study aims to solve the research questions. The findings of the study showed that auditor professionalism had an effect on auditor performance, while professional ethics, independence, and experience of auditors had no such effect. Public accounting firms must improve and maintain the professionalism of each auditor in order to avoid the manipulation of financial statements and produce maximum performance.
... In order to understand the implementation of performance audit, Muda et al. analyzed the performance audit of tebing government in Gaocheng town through the balanced scorecard. e case analysis results showed that the performance audit in this area was not carried out in strict accordance with the corresponding terms, mainly because the implementation conditions of counties and cities were limited, and many employees did not come from audit and economy related majors [5]. Hahn and Figge analyzed the structure of the sustainable development balanced scorecard from two aspects, including the analysis of the sustainable development balanced scorecard from three aspects: positive results from the social level, complexity and tension, heterogeneity and competitive logic, and whether the sustainable development balanced scorecard is important or not. ...
Improving the equity incentive system has a certain role in promoting the development of the company, but at present, there are relatively few studies on the equity incentive methods of listed companies under the balanced scorecard theory. This paper analyzes the role of equity incentive method of D listed company in enterprise performance management through the balanced scorecard theory and constructs an enterprise financial management evaluation system with qualitative and quantitative characteristics. The evaluation system includes five target layers, two dimensions, and 27 evaluation indicators. The results show that the number of researchers, the number of graduate students, market share, management fee rate, the number of chip patent applications and other internal business processes, customers, and learning and growth are better. Before the implementation of equity incentive method, the evaluation value range of primary indicators is 6–8 points. After the implementation of equity incentive method, the evaluation value range of primary indicators is 2–6 points. This study analyzes the impact of equity incentive methods on performance management through the balanced integral method, which has high application value in subsequent enterprise financial management and risk assessment.
... Number of patents [81], innovation in processes [81], innovation in processes and products [64] Development and learning perspective (DLP): It focuses on support processes such as technology, personnel, procedures, and continuous improvement. It reflects the collective ability to push the three previous perspectives [69,71,82] External Years in the market [80], product demand [78] Technology Strengthening level of IT culture [64] Human Management Employee satisfaction level [71,78,81], personnel retention [81], improve employee skills [64], improve motivation [64], level of teamwork [64] (continued) [69,71]. This is included as a contribution to literature ...
The Colombian Swine Industry (CSI) has a global importance in agriculture as a sustainable objective worldwide, and it is very attractive for farmers for its short productive cycle, if it is compared to other business lines. Thus, the CSI seeks to encourage profitability, to minimize production cost, to open new markets, and to supply local demand. Therefore, they need to search tools for measuring its key indicators. They have important constrains, for instance the lack of technology, economic benefits, and human resources training. With the above, the article objective is to identify pig producers’ key indicators which could carry to create and share knowledge management. Pig industry key indicators were extracted from the literature. After that, those indicators were contrasted by 19 companies using a Likert scale; then, those were analyzed and grouped according to the Balance Scorecard perspectives using the main component analysis. Finally, a measuring instrument was designed, it was validated by 15 CSI experts, who then applied it to a representative sample of 62 companies in the agricultural sector. Among the most outstanding results were the list of pig industry key indicators and its validation, its importance and measurement level; CSI sustainable indexes inclusion from literature; knowledge creation in pig farmers using indexes for measuring and making decisions.
... The balanced scorecard is an epoch-making strategic management performance evaluation tool proposed by the famous American management masters David P. Norton and Robert S. Kaplan on the basis of the successful experience of large-scale enterprise performance. It is called an effective performance appraisal management tool [1]. It is not only widely used by companies, but also highly recognized by non-profit organizations and government and military institutions [2]. ...
In the new era of rapid development of Internet information technology and data processing technology, although the emergence of Internet technology has brought changes that cannot be underestimated in various fields of society, the computer performance evaluation system based on the Internet in the era of big data will definitely follow Technology trends in the new era. The balanced scorecard is one of the most commonly used financial performance appraisal tools in academia. The research purpose of this article is to study the innovation of enterprise computer performance appraisal management system in the current Internet era with the continuous development of big data technology. This paper first uses a neural network algorithm to build a model for it. Through this algorithm combined with a questionnaire survey method to screen the evaluation indicators of the computer performance evaluation system of Internet companies in the eastern coastal area, and finally build a BP model through the enterprise computer performance evaluation system. Model calculation samples, after calculation, the computer performance analysis of the target company can be obtained, and on the basis of summarizing the computer performance evaluation system and the balanced score card of the enterprise in the Internet era, the in-depth understanding and conclusion can be drawn. After studying the setting of performance appraisal system indicators, the setting of personal growth indicators is insufficient, the lack of effective cost control and the setting of computer performance indicators have not yet formed a complete system problem. This paper combines the actual situation of computer performance appraisal of Internet companies in the eastern coastal areas, applies the balanced scorecard to set up a management index system for the company’s computer performance appraisal, and uses the analytic hierarchy process to analyze the weights of the various indicators of the corporate computer performance appraisal balanced scorecard. Compare the evaluation results with the designated enterprise computer performance management evaluation standards. Experimental research results show that the balanced scorecard can effectively improve the efficiency of the computer performance appraisal system, and the computer performance appraisal can be clearer, and based on the Internet background and big data technology, the performance appraisal system can be made clearer.
... An essential step of BSC is to identify indicators for economic, commercial, and organisational perspectives. Then a derived scorecard can be used as a common tool for all levels within an organisation [46][47][48][49][50]. In the shipping industry, the BSC has been broadly used as a benchmarking tool because of its low-cost enforcement [51][52][53][54]. ...
Historically, several maritime casualties have caused loss of lives or environmental disasters. World states are responsible to eliminate such disasters, along with the improvement and efficiency of goods transportation. To prevent similar cases, states have agreed to enforce international standards to oceangoing ships. For monitoring purposes, each state has empowered its Port State Control (PSC) to inspect foreign ships. Nevertheless, there are arguments that ships are over-inspected while accidents still occur. As a complementary action, some private organisations developed risk-based models, which used inspection results by PSC authorities to rate substandard ships. However, these companies provide the results of ships rating only to their clients. In this paper, it is argued that variations among PSC standards are not included in existing risk-based models. Therefore, in the proposed methodology, a Risk Accident Likelihood Tool is introduced, which is based on the reported ship deficiencies. The innovative idea is that every deficiency is weighted according to the rigorousness of the PSC recording the deficiency. This study shows that the challenges of inspection authorities are mainly caused by insufficient resources or poor organisational issues. Eventually, the proposed risk methodology provides a simplified scoring method. Ships with a high score are more likely to suffer an accident.
... In education sector, (Al-Hayaly and Alnajjar, 2016;Lin et al., 2016;Marete, 2015) echoed that BSC was an important measure of performance and recommended that it be incorporated with fuzzy evaluation to evaluate the BSC indicators. The studies on the public sector by (Lubis et al., 2016;Muda et al., 2018;Osewe et al., 2018), found out that implementation of BSC affected performance of education institutions. Further, studies on small and medium enterprises by (Afonso and do Rosário Cabrita, 2015;Chong et al., 2019;Malagueño et al., 2018) established that SMEs that used BSC reported better performance. ...
... Pham and Vu (2019) in a study in the health sector established financial perspective was more adopted and recommended use other perspectives for the hospitals to improve performance. Additionally, a study on the cooperative sector established that the use of financial perspective was more significant, primarily due to the moderating variable of the Sector Regulation (Muda et al., 2018). ...
... Lubis et al. (2016), researched on the implementation of the scorecard in a local authority in Indonesia and found out that this affected its performance. In the same country, Muda et al. (2018) research on the palm oil cooperatives where the results reflected that the financial perspective was more significant than the non-financial perspectives due to the moderating variable of prevailing governing regulations. In Malaysia, several studies have been conducted on the scorecard. ...
The aim of this study is to investigate the performance measurement of the business process outsourcing sector in Kenya using the balanced scorecard approach. The components of the approach include financial, internal processes, customers, learning and growth. The study was carried out in all the registered business process outsourcing companies in Kenya and questionnaires administered to the marketing managers of the respective companies. To analyze data, descriptive statistics and Kruskal Wallis Test were used. Descriptive statistics was used to ascertain the view of the performance of the sector by use of means and standard deviations. Kruskal Wallis Test was used to obtain the perception of the respondents on the use of the four balanced scorecard perspectives in their companies. The study established that the business process outsourcing sector in Kenya used the balanced scorecard that included both financial and non- financial measures. However, they tended to lean more on the use of financial measures. This paper, therefore, recommends the use of non- financial measures to measure performance too.
... Whereas the criteria and indicators for measuring performance should be selected following the nature of the institution's activities and its objectives [7], as a study [19] has shown, the desire of government institutions to apply performance auditing, faces some of the influencing factors represented by institutional factors and political factors. Also, among the factors influencing the inability to achieve the desired objectives of the performance audit are limited human resources, a low level of education at the level of economic concepts and auditing, a lack of guidance on human resource management, and a lack of definition of audit objectives [15]. Also, the lack of awareness among government leaders of the benefits of performance auditing and the inability to select managers and employees in the institution following performance and performance standards is one of the most significant factors. ...
The research aims to study the obstacles facing the Federal Board Of Supreme Audit in applying performance auditing. The researchers used a questionnaire form to test the research hypotheses and achieve their objectives. Where (70) questionnaire forms were distributed to a selected Federal Board of the Supreme Audit staff and university professors. (60) valid questionnaire forms were retrieved for analysis, with a response rate of (86%). And the data contained in the questionnaire were analyzed using the statistical program (SPSS). The research reached a set of conclusions, the most important of which is that the obstacles facing the Federal Office of Financial Supervision in the application of performance auditing are personal obstacles related to the auditor, public institutions and the surrounding environment and that the obstacles related to public institutions obtained a greater percentage of importance than other obstacles. This is because it is the central point of the audit process. And to provide the basic elements to provide an internal control system and good work management systems within the institution, as well as to raise awareness and fully realize the importance of performance evaluation as a basis for providing the information necessary for the success of the performance audit process. While the most important recommendations were that attention should be paid to obstacles related to public institutions, as they represent the focal point of the audit process and strive to find the basic ingredients to provide an internal control system and good work management systems within the institution, as well as to sensitize and sensitize managers and workers to the importance of performance auditing.
