The current situation of internal controls of small and medium-sized enterprises in the manufacturing sector in Ho Chi Minh City
Main Article Content
Abstract
In the process of production and business activities, enterprises have to face a lot of risks, external and internal factors affecting the implementation of enterprises goals. And then internal control acts as an effective tool for enterprises to cope with risks, reduce risk to acceptable levels, ensure efficiency and efficiency of operations; reliability of information and enhanced compliance with laws and regulations. The following research paper adopts a survey of internal control in 360 small and medium-sized enterprises in the manufacturing sector in Ho Chi Minh City in 2020, through five components of internal control to clearly see the current state of internal control at small and medium-sized enterprises in Ho Chi Minh City. The results show that in general surveyed enterprises are still weak in activities of "Monitoring", "Control activities" and "Risk assessment". The activities "Information communication" and "Control environment" are two components with a high rate of the five components of internal control. Some recommendations are given by the author such as the need to develop a reasonable personnel policy, step by step build a risk assessment process, strengthen monitoring activities, etc. From that, gradually improve the inspection internal control at small and medium-sized enterprises in Ho Chi Minh City
Article Details
Keywords
Internal control of enterprises, Internal control of small and medium enterprises
References
Committee of Sponsoring Organizations of the Treadway Commission (COSO) (2013). Internal control - Integrated framework. New York: AICPA.
Cổng thông tin quốc gia về đăng ký doanh nghiệp (2020). Tình hình đăng ký doanh nghiệp năm 2020. https://dangkykinhdoanh.gov.vn/vn/tin-tuc/598/5275/infographic-ve-tinh-hinh-dang-ky-doanh-nghiep-nam-2020.aspx.
Hair, J., Anderson, R., Tatham, R. & Black, W. (1998). Multivariate data analysis. 5th Edition, Prentice Hall, New Jersey.
ISACA (2012). CobiT 5 - Control Objectives for Information and Related Technologies. Information Systems Audit and Control Association.
Ji, X., Lu, W., & Qu, W. (2016). Internal control weakness and accounting conservatism in China. Managerial Auditing Journal, 31(6/7), 688-726.
Nguyễn Thị Bích Hiệp (2012). Hoàn thiện kiểm soát nội bộ cho các doanh nghiệp nhỏ và vừa trên địa bàn thành phố Hồ Chí Minh. Trường Đại học Kinh tế Thành phố Hồ Chí Minh.
Nguyễn Thị Lê Hà, Trần Thị Ánh (2018). Hệ thống kiểm soát nội bộ của doanh nghiệp nhỏ và vừa tại tỉnh Thái Nguyên. Tạp chí Công thương, 5. https://www.tapchicongthuong.vn/bai-viet/he-thong-kiem-soat-noi-bo-cua-doanh-nghiep-nho-va-vua-tai-tinh-thai-nguyen-53706.htm.
Nyakundi, D. O., Nyamita, M. O. & Tinega, T. M (2014). Effect of internal control systems on financial performance of small and medium scale business enterprises in Kisumu City, Kenya. International Journal of Social Sciences and Entrepreneurship, 1(11), 719-734.
Weng, T. C., Chi, H. Y., & Chen, G. Z. (2015). Internal Control Weakness and Information Quality. Journal of Applied Finance & Banking, 5(5), 135-169.
Most read articles by the same author(s)
- Tran Thi Nguyet Nga, Le Thi Men, The influence of CEO's characteristics on the quality of financial statements of industrial group companies listed on the Ho Chi Minh City stock exchange , Journal of Finance and Marketing: No. 68 (2022)
Similar Articles
- Trang Hà, Huy Lê, Nguyệt Phan, Thạch Keo Sa Ráte, Huyền Võ, The status of the accounting apparatus in small and medium enterprises in Can Tho city , Journal of Finance and Marketing: Vol. 14, issue 1
You may also start an advanced similarity search for this article.