Determining Factors Affecting the Effectiveness of Risk-Based Internal Control System in Import-Export Enterprises in Ho Chi Minh City, Vietnam
Determining Factors Affecting the Effectiveness of Risk-Based Internal Control System in Import-Export Enterprises in Ho Chi Minh City, Vietnam

Author(s): Hung Tang Tri
Subject(s): Social Sciences, Economy
Published by: Vysoká škola ekonomická v Praze
Keywords: COSO; effectiveness of internal controlsystem; ERM; internal control
Summary/Abstract: Purpose:Many enterprises in Viet Nam have been implementing COSO’s Enterprise Risk Management-Integrated Framework (ERM Framework) to improve operations and pursue their goals. Thus, this study examined what factors affecting on the effectiveness of risk-based internal control system of import-export enterprises in Ho Chi Minh City, Viet Nam. Design/methodology/approach:This is a quantitative and qualitative research conducted base on COSO 2004 ERM Framework. An administrated survey was sent to 330 import-export in Ho Chi Minh City to satisfy the sample formula of Tabachnick and Fidell (2007) and Hair et al. (1998). And the collected data were tested by Cronbachs’ Alpha, explore factor analysis (EFA), and multiple regression test to find out what factor (of eight factors) has the relationship to the effectiveness of risk-based internal control system of enterprises. Findings:The research revealed that there was a positive relationship between the effectiveness of risk-based internal control system and eight factorscomprising internal control; objective setting; event identification; risk assessment; risk response; control activities; information and communication; monitoring. In which, the monitoring had the strongest impact and the event identification had the least impact. Research/practical implications:The result contributed in internal control system of private sector in Viet Nam. Furthermore, it donated to convince what factor urgently necessitate to enhance in import-export enterprises. In addition, the research also granted recommendations to boost these enterprises’ operations. And, this study will be continued to conduct with full of population to achieve a highest solidity. Originality/value:The paper is a vital reference for other researchers in Viet Nam. Moreover, enterprises’ leaders are able to manage their organization more effectiveness, whereas policy makers in Ho Chi Minh can create a better environment for import-export enterprises.

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