The influence of factors in the internal control system on financial reporting quality at administrative and public service units in Vietnam
Nội dung chính của bài viết
Tóm tắt
The objective of the project is to measure the influence of factors in the internal control system on financial reporting quality at administrative and public service units in Vietnam. The author inherits five internal control components from the Committee of Sponsoring Organization [COSO], 2013: control environment, risk assessment, communication information, and supervision that affect financial reporting quality. The author uses a mixed research method including qualitative and quantitative, with primary data collected through a survey of 400 units with 30 observed variables, resulting in 350 valid survey forms. From there, the study analyzed EFA exploratory factor analysis and multivariate regression analysis with support from SPSS 27.0 software. Research results show that the internal control system has an impact on administrative and public service units in Vietnam, with the level of influence of the components gradually decreasing: (1) information and communication, (2) control environment, (3) control activities, (4) risk assessment, (5) monitoring. With the results of this research, it helps administrative and public service units to improve and enhance the financial reporting quality while helping to reduce and eliminate weaknesses in the internal control implementation process, in order to strengthen the internal foundation and influence positive impact on governance.
Chi tiết bài viết
Từ khóa
Administrative and public service units, Financial reporting quality, Internal control
Tài liệu tham khảo
Adegboyegun, A. E., Ben-Caleb, E., Ademola, A. O., Oladutire, E. O, & Sodeinde, G. M. (2020). Internal control systems and operating performance: Evidence from small and medium enterprises (SMEs) in Ondo state. Asian Economic and Financial Review, 10(4), 469 https://doi.org/10.18488/journal.aefr.2020.104.469.479
Afiah, N. N. and Azwari, P. C. (2015). The Effect of the Implementation of Government Internal Control System (GICS) on the Quality of Financial Reporting of the Local Government and its Impact on the Principles of Good Governance: A Research in District, City, and Provincial Government in South Sumatera, Procedia - Social and Behavioral Sciences, 211, 811–818. https://doi.org/10.1016/j.sbspro.2015.11.172
Ariesa, L., & Berasategu, R. G. (2009). The analysis of internal controls on revenue and expenditure cycle in PT. Levina. Journal of Applied Finance Accounting, 1(2), 268–280. https://doi.org/10.21512/jafa.v1i2.125
Beest, F. V., Braam, G. J. M., & Boelens, S. (2009). Quality of Financial Reporting: measuring qualitative characteristics. http://hdl.handle.net/2066/74896
Bollen, K. A., (1987). Outliers and improper solutions: A confirmatory factor analysis example. Sociological Methods and Research, 15, 375-384. https://doi.org/10.1177/0049124187015004002
Burke, J. A., Polimeni, R. S., & Basile, A. (2020). Mandatory examinations or audits of quality control assurance systems. The CPA Journal, 90(3), 42–47.
Bruwer, J. P., Coetzee, P., & Meiring, J. (2018). Can internal control activities and managerial conduct influence business sustainability? A South African SMME perspective. Journal of Small Business and Enterprise Development, 25(5), 710–729. doi:10.1108/JSBED-11-2016-0188
Committee of Sponsoring Organization (2013). Internal control Integrated framework. American Institute of CPAs.
Chan K. C., Chen Y. & Liu B. (2020). The Linear and NonLinear Effects of Internal Control and Its Five Components on Corporate Innovation: Evidence from Chinese Firms Using the COSO Framework. European Accounting Review, DOI: 10.1080/09638180.2020.1776626
Chiu, T., & Wang, T. (2019). The COSO framework in emerging technology environments: An effective in-class exercise on internal control. Journal of Emerging Technologies in Accounting, 16 (2), 89–98. doi:10.2308/jeta-52500
Đỗ Quang Giám, Nguyễn Thị Thùy Dương, Hoàng Thị Trúc Như (2016). Kiểm soát nội bộ hoạt động cho vay trong ngân hàng thương mại: Trường hợp của ngân hàng Agribank – Chi nhánh huyện Hoành Bồ, tỉnh Quảng Nam [Internal control of lending activities in commercial banks: The case of Agribank - Hoanh Bo district branch, Quang Nam province]. Tạp chí Kế toán & Kiểm toán, 8, 12 – 14.
Dowdell, T. D., Klamm, B. K., & Andersen, M. L. (2020). Internal controls and financial statement analysis. Journal of Theoretical Accounting Research, 15(2), 34–57
Etienne, J. (2011). Compliance theory: A goal framing approach. Law & Policy, 33(3), 305-333. https://doi.org/10.1111/j.1467-9930.2011.00340.x
Etzioni, A. (1975). Comparative analysis of complex organizations, rev. Simon and Schuster.
Febriana, L., Wardayati, S. M., & Prasetyo, W. (2017). The effect of internal control factors on the accountability of the auditor at the inspectirate of Jombang District. Journal Dinamika Akuntansi, 9(2), 166–175. https://doi.org/10.15294/jda.v9i2.9308
Frazer, L. (2020). Does internal control improve the attestation function and by extension assurance services? A practical approach. Journal of Accounting and Finance, 20(1), 28–38. https://articlearchives.co/index.php/JAF/article/view/98
Gamage, C. T., Lock, K. V., & Fernando, A. (2014). A proposed research framework: Effectiveness of internal control system in state commercial banks in Sri Lanka. International Journal of Scientific Research and Innovative Technology, 1(5), 25–44.
Hair, J. F. (2009). Multivariate data analysis. https://digitalcommons.kennesaw.edu/facpubs/2925/
Hoitash, U., Hoitash, R., & Bedard, J. (2009). Corporate governance and internal control over financial reporting: A comparison of regulatory regimes. The Accounting Review, 84(3), 839–867. https://doi.org/10.2308/accr.2009.84.3.839
Huang, R., & Huang, Y. (2020). Does Internal Control Contribute to a Firm’s Green Information Disclosure? Evidence from China. Sustainability, 12(8). https://doi.org/10.3390/su12083197
Hwang, S. S., Shin, T., & Han, I. (2004). CRAS‐CBR: Internal control risk assessment system using case‐based reasoning. Expert Systems, 21(1), 22-33. https://doi.org/10.1111/j.1468-0394.2004.00260.x
Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305-360.
Jokipii, A. (2010). Determinants and consequences of internal control in firms: a contingency theory based analysis. Journal of Management & Governance, 14, 115-144. https://doi.org/10.1007/s10997-009-9085-x
Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age International.
Koutoupis, A. G., & Pappa, E. (2018). Corporate governance and internal controls: A case study from Greece. Journal of Governance & Regulation, 7(2), 91–99. https://doi.org/10.22495/jgr_v7_i2_p8
Liu, J.-Y. (2018). An internal control system that includes corporate social responsibility for social sustainability in the new era. Sustainability, 10(10). https://doi.org/10.3390/su10103382
Lai, S-M., Liu, C-L., & Chen, S-S. (2020). Internal Control Quality and Investment Efficiency. Accounting Horizons, 34(2), 125–145. https://doi.org/10.2308/horizons-12-148
Liu, X., & Liu, X., 2017. CEO equity incentives and the remediation of material weaknesses in internal control. Journal of Business Finance & Accounting. https://doi.org/10.1111/jbfa.12265
Mahaputra, I. P. U. R., & Putra, I. W. (2014). Analisis faktor-faktor yang memengaruhi kualitas informasi pelaporan keuangan pemerintah daerah. E-Jurnal Akuntansi Universitas Udayana, 8(2), 230-244.
Mjaku, G., & Pristina, K. (2019). Control activity and monitoring as COSO framework elements and their impact on the performance of entity: Case study republic of Kosovo. Management, Business Economics, 135. https://doi.org/10.33107/ubt-ic.2019.363
Mutiana, L., Diantimala, Y., & Zuraida, Z. (2017). Pengaruh sistem pengendalian intern, teknologi informasi, Kualitas sumber daya manusia dan komitmen organisasi terhadap Kualitas laporan keuangan (studi pada satker di lingkungan kementerian agama kabupaten aceh utara). Jurnal Perspektif Ekonomi Darussalam (Darussalam Journal of Economic Perspec, 3(2), 151-167. https://doi.org/10.20885/jaai.vol17.iss2.art7
Muraleetharan, P. (2013). Control activities and performance of organisations. International Journal of Marketing, Financial Services and Management Research, 2(4), 10–16.
Nguyễn Anh Hiền (2019). Ảnh hưởng của hệ thống KSNB đến chất lượng BCTC tại các doanh nghiệp [The impact of the internal control system on the quality of financial statements at enterprises]. Tạp chí tài chính, 6(2).
Nguyễn Đăng Huy và Nguyễn Thị Hoa (2015). Hệ thống kiểm soát nội bộ trong các tập đoàn/tổng công ty Nhà nước khi chuyển đổi sang mô hình công ty TNHH MTV và những vấn đề đặt ra [The internal control system in State-owned corporations/corporations when converting to a single-member limited liability company model and the issues raised]. Tạp chí Kế toán & Kiểm toán, 6, 33 – 35.
Omolaye, K. E., & Jacob, R. B. (2017). The role of internal auditing in enhancing good corporate governance practice in an organization. International Journal of Accounting Research, 6(1), 174.
Park, K., Qin, J., Seidel, T., & Zhou, J. (2019). Does prompt compliance with the COSO 2013 framework signal a commitment to a strong internal control environment? http://hdl.handle.net/10125/64899
Pham, Q. T., Truong, T. H. D., Ho, X. T., & Nguyen, Q. T. (2022). The role of supervisory mechanisms in improving financial reporting quality by Vietnam public non-business unit. Cogent Business & Management, 9(1), 2112538. https://doi.org/10.1080/23311975.2022.2112538
Rubino, M. and Vitolla, F. (2014). Internal control over financial reporting: Opportunities using the cobit framework. Managerial Auditing Journal, 29(8). https://doi.org/10.1108/MAJ-03-2014-1016
Salameh, R. S. (2019). What is the impact of the internal control system on the quality of banks’ financial statements in Jordan? Academy of Accounting Financial Studies Journal, 23(5), 1–10.
Scapens, R. W., & Sale, J. T. (1985). An International Study of Accounting Practices in Divisionalized Companies and Their Associations with Organizational Variables. The Accounting Review, 60(2), 231-247. https://www.jstor.org/stable/246788
Schantl, S. F., & Wagenhofer, A. (2020). Optimal internal control regulation: Standards, penalties, and leniency in enforcement. Journal of Accounting and Public Policy, 40(3), 106803. https://doi.org/10.1016/j.jaccpubpol.2020.106
Shintia, C. I., & Erawati, N. M. (2017). E-Jurnal Akuntansi Universitas Udayana. The Effects of HR Quality. Information Systems, Internal Control and Organizational Commitment on the Quality of Financial Statements, 21, 1186-1205.
Shoimah, S. L. (2015). The effect of internal control on the performance of hotel employees in Jembe district. Journal of Business Economics Research, 2, 1-8. http://repository.unej.ac.id/handle/123456789/64462
Skaife H. A., Veenman D., Wangerin D. (2013). Internal control over financial reporting and managerial rent extraction: Evidence from the profitability of insider trading. Journal of Accounting and Economics, 55(1) 91-110. https://doi.org/10.1016/j.jacceco.2012.07.005
Steckler, A., McLeroy, K. R., Goodman, R. M., Bird, S. T., & McCormick, L. (1992). Toward integrating qualitative and quantitative methods: An introduction. Health Education Quarterly, 19(1), 1-8. https://doi.org/10.1177/109019819201900101
Sutinen, J. G., & Kuperan, K. (1999). A socio‐economic theory of regulatory compliance. International journal of Social Economics, 26(1/2/3), 174-193. https://doi.org/10.1108/03068299910229569
Võ Thu Phụng (2016). Tác động của các nhân tố cấu thành hệ thống kiểm soát nội bộ đến hiệu quả hoạt động của Tập đoàn Điện lực Việt Nam [The impact of the factors that constitute the internal control system on the performance of Vietnam Electricity Group]. Luận án tiến sĩ, Trường Đại học kinh tế TP Hồ Chí Minh.
Wali, S., & Masmoudi, S. M. (2020). Internal control and real earnings management in the French context. Journal of Financial Reporting and Accounting, 18(2), 363–387. https://doi.org/10.1108/JFRA-09- 2019-0117
Wang, L. (2019). Research on internal control construction system of energy-based enterprises based on COSO and financial quality. Paper presented at the IOP Conference Series: Earth and Environmental Science (p. 252). https://doi.org/10.1088/1755–1315/252/3/032062
Yendrawati, R. (2013). Pengaruh sistem pengendalian intern dan kapasitas sumber daya manusia terhadap kualitas informasi laporan keuangan dengan faktor eksternal sebagai variabel moderating. Jurnal Akuntansi Dan Auditing Indonesia, 17(2), 166-175. https://doi.org/10.24815/jped.v3i2.8228
Afiah, N. N. and Azwari, P. C. (2015). The Effect of the Implementation of Government Internal Control System (GICS) on the Quality of Financial Reporting of the Local Government and its Impact on the Principles of Good Governance: A Research in District, City, and Provincial Government in South Sumatera, Procedia - Social and Behavioral Sciences, 211, 811–818. https://doi.org/10.1016/j.sbspro.2015.11.172
Ariesa, L., & Berasategu, R. G. (2009). The analysis of internal controls on revenue and expenditure cycle in PT. Levina. Journal of Applied Finance Accounting, 1(2), 268–280. https://doi.org/10.21512/jafa.v1i2.125
Beest, F. V., Braam, G. J. M., & Boelens, S. (2009). Quality of Financial Reporting: measuring qualitative characteristics. http://hdl.handle.net/2066/74896
Bollen, K. A., (1987). Outliers and improper solutions: A confirmatory factor analysis example. Sociological Methods and Research, 15, 375-384. https://doi.org/10.1177/0049124187015004002
Burke, J. A., Polimeni, R. S., & Basile, A. (2020). Mandatory examinations or audits of quality control assurance systems. The CPA Journal, 90(3), 42–47.
Bruwer, J. P., Coetzee, P., & Meiring, J. (2018). Can internal control activities and managerial conduct influence business sustainability? A South African SMME perspective. Journal of Small Business and Enterprise Development, 25(5), 710–729. doi:10.1108/JSBED-11-2016-0188
Committee of Sponsoring Organization (2013). Internal control Integrated framework. American Institute of CPAs.
Chan K. C., Chen Y. & Liu B. (2020). The Linear and NonLinear Effects of Internal Control and Its Five Components on Corporate Innovation: Evidence from Chinese Firms Using the COSO Framework. European Accounting Review, DOI: 10.1080/09638180.2020.1776626
Chiu, T., & Wang, T. (2019). The COSO framework in emerging technology environments: An effective in-class exercise on internal control. Journal of Emerging Technologies in Accounting, 16 (2), 89–98. doi:10.2308/jeta-52500
Đỗ Quang Giám, Nguyễn Thị Thùy Dương, Hoàng Thị Trúc Như (2016). Kiểm soát nội bộ hoạt động cho vay trong ngân hàng thương mại: Trường hợp của ngân hàng Agribank – Chi nhánh huyện Hoành Bồ, tỉnh Quảng Nam [Internal control of lending activities in commercial banks: The case of Agribank - Hoanh Bo district branch, Quang Nam province]. Tạp chí Kế toán & Kiểm toán, 8, 12 – 14.
Dowdell, T. D., Klamm, B. K., & Andersen, M. L. (2020). Internal controls and financial statement analysis. Journal of Theoretical Accounting Research, 15(2), 34–57
Etienne, J. (2011). Compliance theory: A goal framing approach. Law & Policy, 33(3), 305-333. https://doi.org/10.1111/j.1467-9930.2011.00340.x
Etzioni, A. (1975). Comparative analysis of complex organizations, rev. Simon and Schuster.
Febriana, L., Wardayati, S. M., & Prasetyo, W. (2017). The effect of internal control factors on the accountability of the auditor at the inspectirate of Jombang District. Journal Dinamika Akuntansi, 9(2), 166–175. https://doi.org/10.15294/jda.v9i2.9308
Frazer, L. (2020). Does internal control improve the attestation function and by extension assurance services? A practical approach. Journal of Accounting and Finance, 20(1), 28–38. https://articlearchives.co/index.php/JAF/article/view/98
Gamage, C. T., Lock, K. V., & Fernando, A. (2014). A proposed research framework: Effectiveness of internal control system in state commercial banks in Sri Lanka. International Journal of Scientific Research and Innovative Technology, 1(5), 25–44.
Hair, J. F. (2009). Multivariate data analysis. https://digitalcommons.kennesaw.edu/facpubs/2925/
Hoitash, U., Hoitash, R., & Bedard, J. (2009). Corporate governance and internal control over financial reporting: A comparison of regulatory regimes. The Accounting Review, 84(3), 839–867. https://doi.org/10.2308/accr.2009.84.3.839
Huang, R., & Huang, Y. (2020). Does Internal Control Contribute to a Firm’s Green Information Disclosure? Evidence from China. Sustainability, 12(8). https://doi.org/10.3390/su12083197
Hwang, S. S., Shin, T., & Han, I. (2004). CRAS‐CBR: Internal control risk assessment system using case‐based reasoning. Expert Systems, 21(1), 22-33. https://doi.org/10.1111/j.1468-0394.2004.00260.x
Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305-360.
Jokipii, A. (2010). Determinants and consequences of internal control in firms: a contingency theory based analysis. Journal of Management & Governance, 14, 115-144. https://doi.org/10.1007/s10997-009-9085-x
Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age International.
Koutoupis, A. G., & Pappa, E. (2018). Corporate governance and internal controls: A case study from Greece. Journal of Governance & Regulation, 7(2), 91–99. https://doi.org/10.22495/jgr_v7_i2_p8
Liu, J.-Y. (2018). An internal control system that includes corporate social responsibility for social sustainability in the new era. Sustainability, 10(10). https://doi.org/10.3390/su10103382
Lai, S-M., Liu, C-L., & Chen, S-S. (2020). Internal Control Quality and Investment Efficiency. Accounting Horizons, 34(2), 125–145. https://doi.org/10.2308/horizons-12-148
Liu, X., & Liu, X., 2017. CEO equity incentives and the remediation of material weaknesses in internal control. Journal of Business Finance & Accounting. https://doi.org/10.1111/jbfa.12265
Mahaputra, I. P. U. R., & Putra, I. W. (2014). Analisis faktor-faktor yang memengaruhi kualitas informasi pelaporan keuangan pemerintah daerah. E-Jurnal Akuntansi Universitas Udayana, 8(2), 230-244.
Mjaku, G., & Pristina, K. (2019). Control activity and monitoring as COSO framework elements and their impact on the performance of entity: Case study republic of Kosovo. Management, Business Economics, 135. https://doi.org/10.33107/ubt-ic.2019.363
Mutiana, L., Diantimala, Y., & Zuraida, Z. (2017). Pengaruh sistem pengendalian intern, teknologi informasi, Kualitas sumber daya manusia dan komitmen organisasi terhadap Kualitas laporan keuangan (studi pada satker di lingkungan kementerian agama kabupaten aceh utara). Jurnal Perspektif Ekonomi Darussalam (Darussalam Journal of Economic Perspec, 3(2), 151-167. https://doi.org/10.20885/jaai.vol17.iss2.art7
Muraleetharan, P. (2013). Control activities and performance of organisations. International Journal of Marketing, Financial Services and Management Research, 2(4), 10–16.
Nguyễn Anh Hiền (2019). Ảnh hưởng của hệ thống KSNB đến chất lượng BCTC tại các doanh nghiệp [The impact of the internal control system on the quality of financial statements at enterprises]. Tạp chí tài chính, 6(2).
Nguyễn Đăng Huy và Nguyễn Thị Hoa (2015). Hệ thống kiểm soát nội bộ trong các tập đoàn/tổng công ty Nhà nước khi chuyển đổi sang mô hình công ty TNHH MTV và những vấn đề đặt ra [The internal control system in State-owned corporations/corporations when converting to a single-member limited liability company model and the issues raised]. Tạp chí Kế toán & Kiểm toán, 6, 33 – 35.
Omolaye, K. E., & Jacob, R. B. (2017). The role of internal auditing in enhancing good corporate governance practice in an organization. International Journal of Accounting Research, 6(1), 174.
Park, K., Qin, J., Seidel, T., & Zhou, J. (2019). Does prompt compliance with the COSO 2013 framework signal a commitment to a strong internal control environment? http://hdl.handle.net/10125/64899
Pham, Q. T., Truong, T. H. D., Ho, X. T., & Nguyen, Q. T. (2022). The role of supervisory mechanisms in improving financial reporting quality by Vietnam public non-business unit. Cogent Business & Management, 9(1), 2112538. https://doi.org/10.1080/23311975.2022.2112538
Rubino, M. and Vitolla, F. (2014). Internal control over financial reporting: Opportunities using the cobit framework. Managerial Auditing Journal, 29(8). https://doi.org/10.1108/MAJ-03-2014-1016
Salameh, R. S. (2019). What is the impact of the internal control system on the quality of banks’ financial statements in Jordan? Academy of Accounting Financial Studies Journal, 23(5), 1–10.
Scapens, R. W., & Sale, J. T. (1985). An International Study of Accounting Practices in Divisionalized Companies and Their Associations with Organizational Variables. The Accounting Review, 60(2), 231-247. https://www.jstor.org/stable/246788
Schantl, S. F., & Wagenhofer, A. (2020). Optimal internal control regulation: Standards, penalties, and leniency in enforcement. Journal of Accounting and Public Policy, 40(3), 106803. https://doi.org/10.1016/j.jaccpubpol.2020.106
Shintia, C. I., & Erawati, N. M. (2017). E-Jurnal Akuntansi Universitas Udayana. The Effects of HR Quality. Information Systems, Internal Control and Organizational Commitment on the Quality of Financial Statements, 21, 1186-1205.
Shoimah, S. L. (2015). The effect of internal control on the performance of hotel employees in Jembe district. Journal of Business Economics Research, 2, 1-8. http://repository.unej.ac.id/handle/123456789/64462
Skaife H. A., Veenman D., Wangerin D. (2013). Internal control over financial reporting and managerial rent extraction: Evidence from the profitability of insider trading. Journal of Accounting and Economics, 55(1) 91-110. https://doi.org/10.1016/j.jacceco.2012.07.005
Steckler, A., McLeroy, K. R., Goodman, R. M., Bird, S. T., & McCormick, L. (1992). Toward integrating qualitative and quantitative methods: An introduction. Health Education Quarterly, 19(1), 1-8. https://doi.org/10.1177/109019819201900101
Sutinen, J. G., & Kuperan, K. (1999). A socio‐economic theory of regulatory compliance. International journal of Social Economics, 26(1/2/3), 174-193. https://doi.org/10.1108/03068299910229569
Võ Thu Phụng (2016). Tác động của các nhân tố cấu thành hệ thống kiểm soát nội bộ đến hiệu quả hoạt động của Tập đoàn Điện lực Việt Nam [The impact of the factors that constitute the internal control system on the performance of Vietnam Electricity Group]. Luận án tiến sĩ, Trường Đại học kinh tế TP Hồ Chí Minh.
Wali, S., & Masmoudi, S. M. (2020). Internal control and real earnings management in the French context. Journal of Financial Reporting and Accounting, 18(2), 363–387. https://doi.org/10.1108/JFRA-09- 2019-0117
Wang, L. (2019). Research on internal control construction system of energy-based enterprises based on COSO and financial quality. Paper presented at the IOP Conference Series: Earth and Environmental Science (p. 252). https://doi.org/10.1088/1755–1315/252/3/032062
Yendrawati, R. (2013). Pengaruh sistem pengendalian intern dan kapasitas sumber daya manusia terhadap kualitas informasi laporan keuangan dengan faktor eksternal sebagai variabel moderating. Jurnal Akuntansi Dan Auditing Indonesia, 17(2), 166-175. https://doi.org/10.24815/jped.v3i2.8228
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