Factors influencing the effectiveness of internal control in cement manufacturing companies

Abstract

This research approaches and used the 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) with a view to assessing the impact of the factors: (1) Control environment, (2) Risk assessment, (3) Information and communication, (4) Control activities and (5) Monitoring on the effectiveness of internal control at cement companies. The research was carried out through a survey of 210 managers and employees at Vietnamese cement companies with the support of SPSS software and assessed scale reliability through using the Cronbach`s Alpha coefficient and the method of exploratory factor analysis (EFA). The research results show that the factors above had positive relationship with the effectiveness of internal control. Also, on such basis, the author gave recommendations for maintaining and promoting the effectiveness of internal control to managers at cement companies.

Internal control and real earnings management in the French context

“…Control activities are performed at all levels of the entity, at various stages and over the technology environment. They are preventive or detective in nature and could involve a range of manual and automated activities such as authorizations, approvals, verifications, reconciliations and reviews of operating performance, leading to a better financial reporting (Uwadiae, 2015;Anh et al, 2020). With reference to Model 2.2, only the control environment, as a component of internal control, stand as significantly and negatively associated with the dependent variable ADE at the 10% level.…”

Internal Control Effectiveness and Business Survival: Evidence from Thai Food Businesses

“…They are required to set realistic objectives, provide sufficient resources to pursue them and address a range of activities in transaction cycles and other strategic areas to achieve their objectives. Also, firms need to identify operational risks through a process of risk assessment, communicate information about threats and changes by producing operational, financial and compliance-related reports and monitor functions of internal controls and ensure meeting their objectives (Anh, Thi, Quang, & Thi, 2020). In the effectiveness of internal controls, firms can improve and increase their business operations and productivities.…”

“…Generally, firms have understood principles and fairly reflecting a substance of firms' economic transactions, and a scope of their compliances with applicable laws and regulations (Krishnan & Yu, 2012). Firms with effective internal control can increase the effectiveness of operations, reduce an occurrence of fraudulent financial reporting and promote valuable legal and regulation practices (Anh, Thi, Quang, & Thi, 2020). Thus, internal control effectiveness positively affects firms' business outcomes.…”

Public sector accountability: do leadership practices, integrity and internal control systems matter?

“…A sound internal control system benefit institutions in anticipating the incidence of worse financing and helping an institution work viably and concordantly when identifying errors and inconsistencies in its operation (Appiah, Agyemang, Agyei, Nketiah, & Mensah, 2014;Anh, Thi, Quang, & Thi, 2020). Thus, sound corporate governance systems in every institution start with effective and efficient internal control systems that prevent fraud, corruption and abuse of resources (see Kabuye, Kato, Akugizibwe, & Bugambiro, 2019).…”