(Luận văn) determinants of an effective internal control , a study of firms in vietnam

t to MINISTRY OF EDUCATION AND TRAINING ng hi UNIVERSITY OF ECONOMICS HO CHI MINH CITY ep
 w n lo ad ju y th NONG QUANG THANH yi pl ua al n DETERMINANTS OF AN EFFECTIVE n va ll fu INTERNAL CONTROL: oi m at nh A STUDY OF FIRMS IN VIETNAM z z k jm ht vb om l.c gm MASTER THESIS OF BUSINESS ADMINISTRATOR n a Lu n va y te re th HO CHI MINH CITY – 2013 t to MINISTRY OF EDUCATION AND TRAINING ng hi ep UNIVERSITY OF ECONOMICS HO CHI MINH CITY w
 n lo ad ju y th NONG QUANG THANH yi pl ua al n DETERMINANTS OF AN EFFECTIVE va n INTERNAL CONTROL: ll fu m oi A STUDYOF FIRMS IN VIETNAM at nh z z ht vb Subject: Master of Business Administrator k jm Code: 06.34.01.02 gm om l.c MASTER THESIS OF BUSINESS ADMINISTRATOR n a Lu SUPERVISOR: n va DR NGUYỄN THỊ NGUYỆT QUẾ y te re th HO CHI MINH CITY – 2013 I t to ACKNOWLEDGEMENT ng hi ep I would like to take this opportunity to express my gratitude to all those who have helped and supported me during the time I conducted the study w n Firstly, I would like to express my deepest sincere gratitude to my lo ad supervisor, Dr Nguyen Thi Nguyet Que for her patient and invaluable advices to ju y th my thesis Without her support, the thesis could not have been completed yi Secondly, I would like special thanks to all instructors and lecturers in pl eMBA course for their teaching invaluable knowledge and experience to me I am al n ua very great honor to introduce with my relationships that I have been participated in n va eMBA program of Economic University, Ho Chi Minh City ll fu Many thanks to Mr Cao Quoc Viet, as well as the other classmates in eMBA oi m K19 class for their sharing valuable knowledge to me to complete this research study at nh I also wish to thank my friends, external auditors in KPMG and A&C as well z z as other respondents Without them, my thesis could not have been conducted ht vb jm Lastly, I would like to send the deepest and most special thanks to my k beloved parents, my wife and my family members who encourage me to overcome om l.c Nong Quang Thanh Ho Chi Minh, September 2013 gm all difficulties to complete this course n a Lu n va y te re th II t to ng COMMITMENT hi ep I hereby would like to commit that the thesis, “Determinants of an effective w internal control: a study of firms in Vietnam”, was accomplished based on my n lo independent and serious studies and researches The data was collected in reality ad and it has clear origins In addition, the data would be trust-worthily handled and it y th has never been released in any menu ju yi Nong Quang Thanh pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th III t to TABLE OF CONTENTS ng hi ACKNOWLEDGEMENT I ep COMMITMENT II w TABLE OF CONTENTS III n lo LIST OF FIGURES V ad LIST OF TABLES VI y th ju ABBREVIATIONS VII yi ABSTRACT pl ua al CHAPTER 1: INTRODUCTION Introduction 1.2 Background to the research 1.3 Research problems 1.4 Research objectives 1.5 Research questions 1.6 1.7 Research methodology and scope Thesis structure n 1.1 n va ll fu oi m at nh z z ht vb CHAPTER 2: LITERATURE REVIEW Introduction 2.2 Internal control components 2.3 Internal control effectiveness 11 2.4 Gaps in the literature 13 2.5 Research hypotheses and theoretical model 14 2.6 Summary 19 k jm 2.1 om l.c gm n a Lu 3.3 Questionnaires design 21 3.4 Operationalisation of measures 22 th Research process 20 y 3.2 te re Introduction 20 n 3.1 va CHAPTER 3: RESEARCH METHODOLOGY 20 IV t to ng hi 3.5 Pilot test 25 3.6 Main survey 25 ep 3.6.1 Sample design 25 w 3.6.2 Survey method 27 n lo 3.6.3 Data analysis techniques 27 ad 3.7 Summary 28 y th CHAPTER 4: RESEARCH RESULTS 29 ju Introduction 29 yi 4.1 pl Descriptive statistic of the study 29 4.3 Testing measurement scale 31 4.4 Testing the research model and the hypotheses 39 4.5 Summary 45 n ua al 4.2 n va fu ll CHAPTER 5: DISCUSSION AND CONCLUSIONS 47 m Introduction 47 5.2 Discussion of findings 47 5.3 Implications of the research 49 5.4 Limitations and recommendations 52 oi 5.1 at nh z z ht vb k jm LIST OF REFERENCE 54 gm APPENDIX 60 APPENDIX 66 l.c om APPENDIX 69 n a Lu APPENDIX 72 n va y te re th V t to LIST OF FIGURES ng hi ep Figure 2.1 Quantitative assessment of internal control framework 12 Figure 2.2: The relationship between internal control components and the w n efficiency and effectiveness of operation 18 lo ad Figure 2.3: The relationship between internal control components and the y th ju reliability of financial report 18 yi pl Figure 2.4: The relationship between internal control components and the n ua al compliance with laws and regulations 19 Figure 4.1 Respondent's age 30 n va ll fu Figure 4.2 Respondent's experience 31 m oi Figure 4.3 Organization industry 31 at nh z z k jm ht vb om l.c gm n a Lu n va y te re th VI t to LIST OF TABLES ng hi ep Table 2.1: Comparison of Control frameworks in the US Table 3.1: Measurement scale of internal control components 22 w n lo Table 3.2: Measurement scale of internal control effectiveness 24 ad ju y th Table 4.1: Sample characteristics 30 yi Table 4.2: Reliability of measurement scales 32 pl ua al Table 4.3-4.5: The EFA result for internal control components measurement scales 36 n va n Table 4.6-4.8: The EFA result for internal control effectiveness measurement fu ll scales 38 m oi Table 4.9: Correlation of constructs 39 nh at Table 4.10a-c: Summary of hypotheses testing results (Model I) 41 z z ht vb Table 4.11a-c: Summary of hypotheses testing results (Model II) 43 k jm Table 4.12a-c: Summary of hypotheses testing results (Model III) 44 om l.c gm n a Lu n va y te re th VII t to ng hi ABBREVIATIONS ep CONTROL Internal control components w n Internal control effectiveness lo EFFE ad Control environment Control activities ua al Information and communication n INFO pl COAC Risk assessment yi RISK ju y th COEN n va Monitoring EFFI Efficiency and effectiveness of operation RELI Reliability of financial report LAW Compliance with laws and regulations COSO Committee of Sponsoring Organizations ll fu MONI oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th t to ng ABSTRACT hi ep This study reports the results on the internal control components and internal w control effectiveness from the external auditor’s perspective by using measurement n lo scale proposed by Annukka Jokipii (2009) The study is among the very few studies ad in Vietnam empirically examines internal control effectiveness as well as suggest y th the reference internal control components used in practice ju yi To assess the internal control components and internal control effectiveness, a pl ua al study of 236 external auditors who audited the operation of companies in Vietnam in 2011 was conducted Even though some unexpected outcomes have incurred, n n va “control environment” and “monitoring” are not supported in their relationship with fu “the reliability of financial report”; “information and communication” is not ll supported in the relationship with “the compliance with laws and regulations”, the m oi empirical results indicate that all remaining internal control components (Control nh environment, risk assessment, control activities, information and communication, at z and monitor) have significant positive effect on internal control effectiveness which z vb are also considered the company objectives: efficiency and effectiveness of jm ht operation, reliability of financial report, compliance with laws and regulations k Key words: Internal control components, Internal control effectiveness om l.c gm n a Lu n va y te re th 64 t to ng hi ep w n ðánh giá rủi ro Phản đối Theo tơi, mục tiêu hoạt ñộng Công ty ñáng tin cậy hợp lý Các Thành viên quản lý chủ ñộng ñánh giá rủi ro bên lẫn bên ngồi có khả gây cản trở việc đạt mục tiêu Phân tích rủi ro cấp tồn Cơng ty ñã ñược thực năm qua Các Thành viên quản lý hiểu rõ biết cách kiểm soát rủi ro phạm vi trách nhiệm cơng việc họ Theo tơi, qui trình đánh giá kiểm sốt rủi ro Cơng ty lẽ hiệu ðồng ý 5 5 lo ad ju y th yi Hoạt động kiểm sốt Trong q trình hoạt động, phận kiểm sốt Cơng ty đưa cảnh báo có tình bất thường xảy Ngay thơng báo có tình bất thường xảy ra, biện pháp xử lý ln thực nhanh chóng thích hợp Khi bổ nhiệm cơng việc, Cơng ty có lưu ý đến quyền hạn u cầu đặc biệt cơng việc Theo tơi, biện pháp kiểm sốt nội lẽ cải thiện tốt Tồn nhân viên Cơng ty cập nhật rõ u cầu cơng việc pl n ua al n va ll fu oi m at nh Truyền tải thơng tin Nhân viên khơng gặp khó khăn việc thu thập thơng tin liên quan đến cơng việc Báo cáo chuyển cho Cấp quản lý rõ ràng chứa đựng thơng tin thích hợp Thơng tin truyền tải phịng ban kịp thời nhanh chóng ñảm bảo cho việc hoạt ñộng Hệ thống thông tin liên lạc Cơng ty chưa hồn thiện Cơng việc ñược phối hợp hiệu nội phòng ban phòng ban với z z k jm ht vb l.c gm 5 om Kiểm tra giám sát Thơng tin hoạt động ñều ñược cập nhật vào hệ thống thông tin tài để phục vụ cho việc quản lý Cấp quản lý trực tiếp cẩn trọng việc thực kiểm sốt hàng ngày Cơng ty có biện pháp hiệu việc kiểm sốt tính tn thủ nhân viên ñối với quy chế hoạt ñộng Trong năm qua, Công ty ñã thực phân tích thay đổi (sự hài lịng khách hàng,sự hài lịng cơng việc, hiệu quả…) Trong năm qua, Ban Giám đốc khơng u cầu hồn thành biện pháp kiểm soát a Lu n 5 n va y th te re 65 t to ng ðánh giá hiệu hệ thống kiểm sốt Phản đối hi ep w n Hiệu hoạt ñộng Cơng ty lẽ cải thiện Vẫn có khả xảy vấn đề q trình hoạt động, loại bỏ, hiệu hoạt động tốt Tơi ln nghi vấn tính hiệu qui trình hoạt động Các nguồn lực Cơng ty triển khai hiệu ðồng ý 5 5 lo ad ju y th Tôi khơng hồn tồn tin tưởng đơi phải kiểm tra thông tin báo cáo lập quản lý tài Thỉnh thoảng có sai sót báo cáo cần phải ñược chỉnh sửa thơng tin xác nhận ðơi chúng tơi nhận ñược phản hồi sai sót báo cáo phát hành bên ngồi Chương trình kế toán (phần mềm, hệ thống… sử dụng quản lý tài cịn tồn nhiều vấn đề 5 yi pl n ua al va n Cơng ty gặp khó khăn việc thực thi quy định pháp luật Các thay ñổi luật pháp ñã thường xuyên gây bất ngờ cho công ty Tôi quan sát thấy nhân viên gặp nhiều khó khăn việc thực thi quy ñịnh pháp luật hành Cơng ty khơng có nhân chịu trách nhiệm theo dõi cập nhật thay ñổi hệ thống luật pháp quy ñịnh ll fu oi m 5 at nh z z k jm ht vb om l.c gm n a Lu n va y te re th 66 t to ng APPENDIX 2: CRONBACH ALPHA ANALYSIS hi ep Cronbach alpha analysis of Control Environment (COEN) Reliability Statistics Cronbach's Alpha N of Items w n 730 lo ad Item-Total Statistics Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted 7.533 629 630 13.32 7.073 724 590 13.03 10.273 014 874 COEN4 13.24 7.148 727 591 COEN5 13.31 7.966 571 655 COEN1 COEN2 yi 13.41 al ju y th Scale Mean if Item Deleted pl COEN3 n ua va n Cronbach alpha analysis of Risk Assessment (RISK) RISK3 13.26 9.738 RISK4 13.43 8.597 RISK5 13.43 9.382 875 802 855 739 871 761 865 689 881 k 8.855 712 jm 13.36 Cronbach's Alpha if Item Deleted ht RISK2 vb 9.583 z 13.15 z RISK1 Corrected Item-Total Correlation at Scale Variance if Item Deleted nh Scale Mean if Item Deleted oi m 893 ll Cronbach's Alpha N of Items fu Reliability Statistics gm Cronbach alpha analysis of Control Activities (COAC) l.c Reliability Statistics 872 om Cronbach's Alpha N of Items Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted 834 COAC2 690 848 COAC3 14.09 8.393 811 819 COAC4 13.77 8.718 656 856 COAC5 14.03 8.525 616 869 th 747 8.927 y 8.631 14.07 te re 14.10 n COAC1 va Scale Mean if Item Scale Variance if Item Deleted Deleted n a Lu Item-Total Statistics 67 t to ng hi Cronbach alpha analysis of Information and Communication (INFO) ep Reliability Statistics Cronbach's Alpha N of Items w 849 n lo ad Item-Total Statistics INFO1 yi INFO2 ju y th Scale Mean if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted 13.05 9.596 668 816 13.42 9.723 690 811 13.04 10.234 612 831 13.39 632 827 701 808 pl INFO3 Scale Variance if Item Deleted al 9.453 INFO5 13.18 9.677 n ua INFO4 va Cronbach alpha analysis of Monitoring (MONI) n oi m 880 ll Cronbach's Alpha N of Items fu Reliability Statistics nh Item-Total Statistics MONI3 14.03 9.781 MONI4 13.81 9.290 MONI5 14.35 9.356 720 853 632 873 834 828 643 873 om l.c gm 9.637 843 k 14.20 759 jm MONI2 Cronbach's Alpha if Item Deleted ht 9.011 vb 14.05 z MONI1 Corrected Item-Total Correlation z Scale Variance if Item Deleted at Scale Mean if Item Deleted n a Lu n va y te re th 68 t to ng Cronbach alpha analysis of Effective&Efficient Operations (EFFI) hi Reliability Statistics ep Cronbach's Alpha N of Items 871 w n Item-Total Statistics lo ad yi EFFI3 ju EFFI2 y th EFFI1 Scale Mean if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted 9.52 5.832 781 812 9.53 6.379 670 856 9.63 6.139 700 845 9.55 5.967 748 826 pl EFFI4 Scale Variance if Item Deleted ua al Cronbach alpha analysis of Reliable Financial Reporting (RELI) n ll 852 fu Cronbach's Alpha N of Items n va Reliability Statistics oi m Scale Variance if Item Deleted Corrected Item-Total Correlation 10.25 5.605 RELI3 10.11 5.706 RELI4 10.10 5.183 Cronbach's Alpha if Item Deleted 713 804 698 810 615 845 750 787 jm ht RELI2 vb 5.588 z 10.10 z RELI1 at nh Scale Mean if Item Deleted k Cronbach alpha analysis of Compliance with laws and regulationss (LAW) gm Reliability Statistics Cronbach's Alpha N of Items om l.c 830 Item-Total Statistics Scale Variance if Item Deleted Corrected Item-Total Correlation a Lu Scale Mean if Item Deleted Cronbach's Alpha if Item Deleted n 630 798 LAW2 10.59 5.055 771 731 LAW3 10.37 5.979 582 818 LAW4 10.46 5.523 652 788 y te re 5.639 n 10.70 va LAW1 th 69 t to ng APPENDIX 3: EXPLORATORY FACTOR ANALYSIS (EFA) hi ep Appendix 3.1: The first EFA implementation of five independent variables KMO and Bartlett's Test w 902 Kaiser-Meyer-Olkin Measure of Sampling Adequacy n lo Approx Chi-Square ad Bartlett's Test of Sphericity 276 Sig .000 ju y th Df yi Total Variance Explained pl Extraction Sums of Squared Loadings Initial Eigenvalues al Component % of Cumulative Total Variance % n ua Total 4352.194 45.878 11.011 809 3.369 75.866 675 2.812 78.678 597 2.486 81.164 548 2.283 83.447 10 510 2.124 85.571 11 443 1.845 87.416 12 438 1.827 89.243 13 388 1.618 90.862 14 305 1.272 92.134 15 294 1.227 93.361 16 260 1.085 94.446 17 249 1.038 95.484 18 215 894 96.378 19 191 795 97.173 20 184 766 97.940 21 159 663 98.602 22 146 606 99.208 23 115 477 99.685 24 075 315 100.000 n 67.632 3.386 14.109 59.403 1.167 4.864 72.497 3.142 13.094 72.497 ll fu 6.383 oi m nh Extraction Method: Principal Component Analysis th 72.497 1.532 y 4.864 45.294 te re 1.167 14.920 n 61.250 3.581 va 67.632 7.416 n 6.383 1.780 a Lu 1.532 30.373 om 15.042 l.c 61.250 53.833 3.610 gm 7.416 7.956 k 1.780 1.909 jm 53.833 15.331 ht 7.956 15.331 vb 1.909 45.878 3.680 z 45.878 z 45.878 % of Cumulative % of Cumulative Total Variance % Variance % at 11.011 va Rotation Sums of Squared Loadings 70 t to ng Rotated Component Matrix(a) hi Component ep w INFO1 827 INFO5 752 n lo 665 INFO4 511 ad INFO2 y th ju 793 yi 757 pl COEN5 820 COEN1 COEN4 688 INFO3 COEN2 642 al 791 ua RISK2 767 n RISK4 650 635 RISK1 594 ll fu 524 RISK5 n va RISK3 775 MONI3 758 588 611 at MONI2 nh MONI1 oi 856 m MONI4 z 532 MONI5 545 COAC5 524 gm COAC4 k 697 jm COAC2 ht 833 vb 864 COAC1 z COAC3 l.c Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization om a Rotation converged in iterations a Lu Appendix 3.2: The first EFA implementation of three dependent variables n Df 000 th Sig 66 y Bartlett's Test of Sphericity 1621.320 te re Approx Chi-Square 847 n Kaiser-Meyer-Olkin Measure of Sampling Adequacy va KMO and Bartlett's Test 71 t to ng Total Variance Explained hi Extraction Sums of Squared Loadings ep Initial Eigenvalues Component Total % of Cumulative % of Total Variance % Variance Rotation Sums of Squared Loadings Cumulative % of Cumulative Total % Variance % w 5.817 48.474 48.474 5.817 48.474 48.474 2.819 23.492 23.492 1.458 12.149 60.623 1.458 12.149 60.623 2.816 23.469 46.961 1.117 9.306 69.929 1.117 9.306 69.929 2.756 22.968 69.929 765 6.373 76.302 620 5.166 81.468 n lo ad 550 4.582 86.051 425 3.541 89.592 359 2.991 92.582 284 2.365 94.947 10 232 1.937 96.884 11 217 1.805 12 157 1.311 yi ju y th pl n ua al va 98.689 n 100.000 fu ll Extraction Method: Principal Component Analysis oi m nh Rotated Component Matrix(a) EFFI3 687 k 714 jm EFFI2 ht 863 vb EFFI4 z EFFI1 882 z at Component 787 RELI4 787 RELI3 696 753 LAW1 728 LAW3 714 y te re a Rotation converged in iterations n Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization va LAW4 n 844 a Lu LAW2 om RELI1 l.c 797 gm RELI2 th 72 t to ng APPENDIX 4: MULTIPLE LINEAR REGRESSION ANALYSIS (MLR) hi ep Appendix 4.1: Testing correlation of constructs Correlations w COEN n COEN Pearson Correlation lo ad y th ju Pearson Correlation yi al 236 236 236 236 235 235 ** ** ** 527 236 236 236 236 236 235 ** 632 628 ** 000 000 236 235 235 ** 543 nh 000 236 at ** 236 236 ** ** ** 545 000 236 236 236 235 235 ** 491 000 236 ** 542 000 000 000 236 236 236 236 ** 000 000 236 235 235 ** 565 ** 000 000 235 235 ** 566 000 000 000 000 000 N 235 235 235 235 235 235 680 ** ** 731 ** 563 638 ** ** 496 000 235 ** 580 000 000 000 000 000 235 235 235 235 235 235 235 n 000 235 va 000 N n Sig (2-tailed) y te re ** Correlation is significant at the 0.01 level (2-tailed) 235 a Lu ** ** 580 om 000 638 ** 496 236 Sig (2-tailed) Pearson Correlation 566 000 236 ** 638 000 l.c 630 552 ** ** 565 gm 000 N ** 236 ** 552 k Sig (2-tailed) 695 ** 563 000 jm 236 ** 630 000 ht N ** 542 000 vb 000 ** z 000 491 z 000 ** ** 731 000 Sig (2-tailed) 691 ** 695 236 574 ** ** 545 000 ** 554 ** 235 236 236 588 574 000 000 236 620 ** 543 ** 680 236 N Pearson Correlation ** 691 000 000 556 ** 588 000 236 ** ** 000 000 556 620 000 236 ** 628 000 000 551 ** 632 oi LAW 236 m RELI ** 638 236 ll EFFI ** 554 000 000 Pearson Correlation ** 556 000 Sig (2-tailed) MONI Pearson Correlation ** LAW 000 fu Pearson Correlation 556 RELI 000 n INFO ** 551 EFFI 000 va N n Sig (2-tailed) MONI 000 236 ua COAC Pearson Correlation ** 527 000 pl N ** INFO 000 606 Sig (2-tailed) COAC 606 Sig (2-tailed) N RISK RISK th 73 t to ng Appendix 4.2: Testing assumptions for residuals of dependent variable hi ep Appendix 4.2.1: The relationship between internal control components and the efficiency & effectiveness of operation (Model I) w n Dependent Variable: EFFI lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th 74 t to ng hi ep Appendix 4.2.2: The relationship between internal control components and the reliability of financial report (Model II) w n Dependent Variable: RELI lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th 75 t to ng hi ep w Appendix 4.2.3: The relationship between internal control components and the compliance with laws and regulations (Model III) n lo ad Dependent Variable: LAW ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th 76 t to ng Appendix 4.3 Mutiple Linear Regression hi ep Appendix 4.3.1: The relationship between internal control components and the efficiency & effectiveness of operation (Model I) w Model Summary n Model lo R Square Adjusted R Square Std Error of the Estimate 686(a) 471 ad R 459 59132 a Predictors: (Constant), MONI, INFO, COEN, COAC, RISK ju y th Sum of Squares df Mean Square 71.495 F Sig 14.299 40.894 000(a) al Residual pl Regression ANOVA(b) yi Model 80.422 230 236 ua 151.918 235 Total n va a Predictors: (Constant), MONI, INFO, COEN, COAC, RISK n b Dependent Variable: EFFI ll fu Coefficients(a) Standardized Coefficients oi Std Error 175 079 COAC 166 074 INFO 174 069 MONI 185 069 186 2.842 005 539 1.855 166 2.219 027 409 2.444 149 2.231 027 516 1.936 166 2.537 012 538 1.860 179 2.705 007 528 1.893 k RISK gm a Dependent Variable: EFFI Model Dimension Eigenvalue Condition Index om l.c Collinearity Diagnostics(a) Variance Proportions (Constant) COEN RISK COAC INFO MONI 00 00 00 03 02 04 01 025 15.384 00 23 01 00 66 19 023 16.084 30 41 13 08 02 23 017 18.354 01 02 03 59 16 49 015 19.744 12 01 80 30 12 09 a Dependent Variable: EFFI th 00 33 y 00 57 te re 00 14.011 n 1.000 030 va 5.890 n a Lu VIF jm 066 ht 187 Tolerance 812 417 vb COEN Collinearity Statistics Sig Beta z 218 z 177 at (Constant) T nh B m Unstandardized Coefficients Model 77 t to ng Appendix 4.3.2: The relationship between internal control components and the reliability of financial report (Model II) hi ep Model Summary Model R R Square Adjusted R Square Std Error of the Estimate w 625 791(a) n 617 47325 lo a Predictors: (Constant), MONI, INFO, COEN, COAC, RISK ad y th ANOVA(b) ju Model Sum of Squares df Mean Square yi 85.504 Regression Residual Sig 17.101 76.356 000(a) 51.287 229 224 al 136.791 234 ua Total pl F n a Predictors: (Constant), MONI, INFO, COEN, COAC, RISK n va b Dependent Variable: RELI ll fu Coefficients(a) Standardized Coefficients oi Std Error 261 063 COAC 364 060 INFO 212 055 MONI 066 055 539 1.854 262 4.128 000 407 2.454 344 6.114 000 517 1.936 212 3.844 000 537 1.863 067 1.212 227 528 1.892 k RISK 060 1.085 279 jm 053 ht 057 vb COEN gm a Dependent Variable: RELI Variance Proportions (Constant) COEN RISK COAC INFO MONI 00 00 00 030 13.982 57 33 03 02 04 01 025 15.236 00 24 01 00 65 18 023 16.051 30 41 13 08 02 24 018 18.316 01 02 03 60 16 48 015 19.747 12 01 80 29 13 09 a Dependent Variable: RELI th 00 y 00 te re 00 n 1.000 va 5.889 n a Lu Model Dimension Eigenvalue Condition Index om l.c Collinearity Diagnostics(a) VIF 611 542 z 175 Tolerance z 107 Collinearity Statistics Sig Beta at (Constant) T nh B m Unstandardized Coefficients Model 78 t to ng Appendix 4.3.3: The relationship between internal control components and the compliance with laws and regulations (Model III) hi ep Model Summary Model R R Square Adjusted R Square Std Error of the Estimate w 669 818(a) n 662 44423 lo a Predictors: (Constant), MONI, INFO, COEN, COAC, RISK ad y th ANOVA(b) ju Model Sum of Squares df Mean Square yi 91.349 Regression Residual Sig 18.270 92.578 000(a) 45.192 229 197 al 136.541 234 ua Total pl F n a Predictors: (Constant), MONI, INFO, COEN, COAC, RISK n va b Dependent Variable: LAW ll fu Coefficients(a) Standardized Coefficients oi Std Error T Beta Tolerance at 164 COEN 199 049 RISK 174 059 COAC 412 056 INFO 043 052 043 MONI 166 051 619 537 z 539 1.854 175 2.935 004 407 2.454 390 7.368 000 517 1.936 831 407 537 1.863 169 3.227 001 528 1.892 ht vb 209 4.042 000 k gm Variance Proportions (Constant) COEN RISK COAC INFO MONI 00 00 00 03 02 04 01 025 15.236 00 24 01 00 65 18 023 16.051 30 41 13 08 02 24 018 18.316 01 02 03 60 16 48 015 19.747 12 01 80 29 13 09 th 00 33 y 00 57 te re 00 13.982 n 1.000 030 va 5.889 n a Lu Model Dimension Eigenvalue Condition Index om l.c Collinearity Diagnostics(a) a Dependent Variable: LAW VIF jm 102 z (Constant) a Dependent Variable: LAW Collinearity Statistics Sig nh B m Unstandardized Coefficients Model