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THE MINISTRY OF EDUCATION AND TRAINING UNIVESITY OF ECONOMICS HO CHI MINH CITY NGUYEN THI HOANG LAN EVALUATING THE AFFECTING OF INTERNAL CONTROL STRUCTURE TO THE EFFECTIVENESS OF INTERNAL CONTROL IN PUBLIC NON – BUSINESS AGENCIES IN VIETNAM Major: Accountancy Code: 9340301 SUMMARY OF PhD THESIS SUPERVISOR: Assoc Prof PhD MAI THI HOANG MINH PhD PHAM NGOC TOAN HO CHI MINH CITY – 2019 The thesis was completed at: University of Economics Ho Chi Minh City Supervisor: Assoc Prof PhD Mai Thi Hoang Minh PhD Pham Ngoc Toan Critic 1: Critic 2: Critic 3: The thesis will be presented to The University Dissertation Board at: At ……… day …… month …… year……… The thesis can be found in library: INTRODUCTION Reason for research Internal control effectiveness has a positive affecting to the quality and effective operating results of government entities in public sector Studies show that the effectiveness of internal control raise the quality of financial statement (Indriasih & Koeswayo, 2014), fulfilling accountability obligations (Aramide.S.F & Bashir.M.M, 2015), lower fraud in public sector (Gbegi & Adebisi, 2015) In Vietnam, studies focused on implement and operating internal control effective for the public non – business agencies (Dinh The Hung et al, 2013; Le Thi Cam Hong, 2014; Nguyen Duc Tho, 2013) In the world, there were studies about internal control structure, the effectiveness of internal control, affecting of internal control structure to the effectiveness of internal control in public sector There were no study about contingency characteristic on political regime in researching the relationship between internal control structure and the effectiveness of internal control Therefore, it is necessary to study the topic “Evaluating the affecting of internal control structure to the effectiveness of internal control in public non – business agencies in Vietnam” Thesis Objectives and Questions The overall objective of this thesis was to evaluate the affecting of internal control structure to the effectiveness of internal control in public non – business agencies in Vietnam and getting moderator by contingency characteristics on political regime Questions: (1) Did internal control structure affect to the effectiveness of internal control in public non – business agencies in Vietnam and the affecting was positive or negative? (2) Which factor was moderator affecting to the relationship between internal control structure and the effectiveness of internal control? And the affecting was positive or negative? Subject and Scope The subject of study: the relationship between internal control structure and the effectiveness of internal control in public non – business agencies in Vietnam The subject of survey and the scope of study: public non – business agencies in Vietnam The period of time for data collection: from 01/05/2018 to 30/09/2018 Research Methodology This thesis used mixed research methods including qualitative method and quantitative method Qualitative method: finding out moderator variable base on contingency characteristics on political regime, socialist - oriented market economy development in Vietnam Quantitative method: Evaluating the affecting of internal control structure to the effectiveness of internal control in public non – business agencies in Vietnam New contributions In terms of theory: providing an empirical evidence on the affecting of internal control structure to the effectiveness of internal control and getting moderator variables in research as the new contribution In terms of practice: building internal control effectiveness is many importance in providing reasonable assurance to management about the achievement of an entity’s objectives, so this study aimed to evaluating the affecting of internal control structure to the effectiveness of internal control in public non – business agencies in Vietnam Thesis Contribution Thesis contribution: (1) Literature review, (2) Theoretical basis, (3) Research methods, (4) Research results and discussion, (5) Conclusion and implications for polity CHAPTER LITERATURE REVIEW 1.1 Introduction Public non – business agencies in Vietnam is in public sector, (“the term “public sector” refers to national governments, regional governments, local governments and related governmental entities” (IFAC)) This thesis reviewed studies in the world with scopes in governmental agencies in public sector Review data: Proquest, Google Scholar, Library of Center for Statistics and Science and Technology Information, Library of University of Economics Ho Chi Minh City 1.2 Literature review on the world of internal control structrure, the effectiveness of internal control at governmental agencies in public sector 1.2.1 Researches on the internal control structrure at governmental entities in public sector Internal control structure is a definition, were showed in many studies on internal control in public sector Some studies showed that Internal control structure and Internal control system were replaced each other (Eisenberg , 1997; O’Leary et al, 2006; Johari et al, 2016) Other studies in quantitative research showed that Internal control structure includes five factors and is measured with five indicators (control environment, risk assessment, control activities, information and communication, and mornitoring) ((Jokipii, 2006; Bilgen et al, 2018) INTOSAI issued INTOSAI GOV 9110 - Guidance for Reporting on the Effectiveness of Internal Controls: SAI Experiences: in Implementing and Evaluating Internal Controls, and building effective internal control structures as one of main problems The measurement of internal control structures was based on the control self-assessment method (CSA method) (Adamec et al, 2002) The CSA questionnaire method respondents were asked to give their opinions about funtionality of the internal control in their agencies, on scale from1 to (1 – strongly agree to – strongly disagree) In conclusion, internal control structure in this thesis is five factors and is measured with five indicators (control environment, risk assessment, control activities, information and communication, and mornitoring) 1.2.2 Researches on affecting of the internal control, the effectiveness of intrenal control to the governmental entities in public sector Internal control was helpful to risk management effective, practice administration, finacial statement, financial and non finacial results of entities ((Sarens et al, 2010; Duh et al, 2011; Suyono & Hariyanto, 2012; Vijayakumar and Nagaraja, 2012; Indriasih & Koeswayo, 2014; Habib & Jalloh, 2016) The effectiveness of internal control affects positively on internal audit effective in local government and providing an reasonable assurance to achievement of an entity’s obkectives ((Badara & Saidin, 2013; Dórman et al, 2013) Other researches showed that the lack of internal control in capital projects leaded to lower reliable decision of capital oganization and government, and affecting to level debt of local government (Gras et al, 2014; Babatunde & Dandago, 2014) On complying with laws and regulations, fulfilling accountability obligations were showed in many researches by Aziz et al (2015), Manurung et al (2015), Aramide & Bashir (2015), Gbegi & Adebisi (2015), Ionescu (2016), Sari et al (2017), Jorge (2017) 1.2.3 Researches on factors impact of the effectiveness of intrenal control There was studies about factors affecting to the effectiveness of internal control in public sector Jokipii (2006) researched structure and effectiveness of internal control, findings that internal control structure affected strongly and positively to the effectiveness of internal control Amudo & Inanga (2009) research evaluating internal control system: case Uganda, the results showed the lack of components in internal control system leading to weakness internal control effectiveness Nakiyaga & Dinh (2017) researched how organizational culture affects internal control effectiveness: the role played by top management, the results showed that center manager decided objectives and implement, training employee, affecting to Cultural organization and internal control in entity, the effectiveness of internal control 5 1.3 Literature review in Vietnam of internal control at governmental entities in public sector In Vietnam, internal control in governmental agencies in public sector were researched There were some studies with subject about improving internal control (Nguyễn Bính Ngọ, 2011; Đinh Thế Hùng, 2013, Nguyễn Đức Thọ, 2015) and complying with regulations in internal control (Thịnh Văn Vinh, 2016; Lê Đoàn Minh Đức et al, 2016) in public sector From review, researching the relationship between internal control structure and the effectiveness of internal control, through moderatoring, is not done in Vietnam 1.4 Research gap From overview researches in Vietnam and in the world shows that the relationship between internal control structure and the effectiveness of internal control was studied, but the research didn’t analysis in moderator model The author selects the topic evaluating affecting of internal control structure to the effectiveness of internal control in public non-business agencies in Vietnam with moderator model CHAPTER THEORETICAL BASIS 2.1 Introduction This chapter introduces theoretical basis about internal control, internal control structure, the effectiveness of internal control and public non-business agencies, political regime, contingency characteristics of public non-business agencies in Vietnam, theory background for research model 2.2 Overiew of Internal control 2.2.1 Internal control 2.2.1.1 Definition of internal control Definition of internal control in this study follows in INTOSAI GOV 9100 6 2.2.1.2 INTOSAI GOV 9100: Guidelines for Internal Control Standards for the Public Sector “Internal control is an integral process that is effected by an entity’s management and personnel and is designed to address risks and to provide reasonable assurance that in pursuit of the entity’s mission, the following general objectives are being achieved: Executing orderly, ethical, economical, efficient and effective operation; Fulfill accountability obligations; Complying with applicable laws ang regulations; Safeguarding resources against lost, misuse ang damage.” (INTOSAI GOV 9100, 2004) An effective internal control reduces the probability of not achieving the objectives 2.2.2 Internal control stucture and components of internal control according to INTOSAI Definition of internal control structure was used in many research (INTOSAI GOV 9110, 2004; Jokipii, 2006; Bodnar & Hoopwod, 2010; Arens et al, 2012; Rosman et al, 2016) Internal control structure involves five components: control environment, risk assessment, control activities, information and communication, and mornitoring Measurement of Internal control structure is internal reflection model with control self – assessment method (CSA method) by Adamec, Rexroad, Leinicke, Ostrosky (2002) 2.2.3 The the effectiveness of intrenal control in public sector INTOSAI GOV 9100 (2004), effectivesess of internal control refers to “ the extent to which objectives are achieved and the relationship between the intended impact and the actual impact of an activity, and extent to which the stated objectives have been attained in a cost – effective way” In public sector, the general objectives are being achieved: Executing orderly, ethical, economical, efficient and effective operation; Fulfill accountability obligations; Complying with applicable laws and regulations; Safeguarding resources against lost, misuse ang damage” 2.3 Overview of public non – business agencies 2.3.1 Definition of public non – business agencies and type Definition of Public non – business agencies in this research follow by Law in public employees 2010 7 2.3.2 Operating environment of public non – business agencies in Vietnam 2.3.2.1 Socialist – oriented market economy of Vietnam Socialist – oriented market economy of Vietnam was definited in Document of the 12th National Party Congress of The communist party of Vietnam 2.3.2.2 Operating environment of public non-business agencies Public non-business agencies had to comply with laws and regulations, about entity’s objectives, organization structure, financial autonomy 2.3.2.3 Financial automony of public non-business agencies Financial automony of public non-business agencies is a part of agency’s proactivity In present, financial automony get four level: (1) operating costs and investment costs by entities budget; (2) operating costs by entities budget; (3) operating costs by entities budget and state budget; (4) costs by state budget 2.3.3 Annual result of party organization and social – political organization in public non-business agencies Party Committees leaders social – political organization in public non-business agencies Annual result of party organization involves results of social – political organization The list of social – political organization in public non-business agencies are following oganization: Ho Chi Minh communist Youth Union, Confederation of Labour, Vietnam Veterans’s Union In present, annual results of party organization and social – political organization in public non-business agencies by party organization results get four level: (1) clean and strong party organization, (2) Well finishing obligation party organization, (3) finishing obligation party organization, (4) weakness party organization 2.4 Theoretical Background 2.4.1 Agency thoery Public non-business agencies execute with complying laws and regulations So that operating environment and political regime impact to the performance of agencies 2.4.2 Contingency theory of Organizations The level of internal control affects to the effectiveness of internal control 2.4.3 Institutional Theory Objectives of public non-business agencies depent on tasks of government and internal control structure in agencies have to deal with that In public non-business agencies, party organization and social – political organization operate in 2.4.4 Competence –Based View Public non-business agencies operate with financial rules and source from government 2.5 Proposing the research model and the research hypothesis Based on review and theoretical background, the research model proposed the following: Moderator: contingency characteristics Internal control Structure The effectiveness of internal control Figure 2.2 proposing the research model There are three kinds of variable in proposing the research model (1) Independent variable: internal control structure (2) Dependent variable: effectivesess of internal control (3) Moderator variable: contingency characteristics Proposing research hypothesis: Hypothesis 1: internal control structure affecs to the effectivesess of internal control in public non – business agencies in Vietnam Hypothesis 2: Contingency characteristics impact to the relationship between internal control structure and the effectivesess of internal control in public non – business agencies in Vietnam CHAPTER RESEARCH METHODS 3.1 Introduction This thesis used mixed research methods including qualitative methods and quantitative methods Quantitative methods was main research and the findings according to quantitative methods Qualitative methods was combined in quantitative research 3.2 Research process Research process involved in steps: literature review and theory basis, building proposing research model and proposing hypothesesis research, measurement concepts in proposing research model, preliminary research, qualitative research for finding out moderator and formal quantitative research for testing hypothesis 3.3 Qualitative method 3.3.1 Qualitative research problem and ethical considerations Qualitative research in this thesis used research process of Creswell (2002) 3.3.2 Data collection and processing Interview sample of 18 experts 3.3.3 Data analysis processing and discussion Using the processing and data collection of Creswell (2002) with six steps 3.3.4 Verify data 3.3.5 Findings Results of qualitative in this study are findings out the moderator for research model 3.4 Quantitative research 10 3.4.1 Analysis for ensuring the reliability of measurement scale Preliminary quantitative methods: through Cronbach’s alpha coefficient assess reliability of measurement scale of five components in internal control structure and four objectives in the effectiveness of internal control 3.4.2 Exploratory factor analysis Preliminary quantitative methods: through exploratory factor analysis assess the value of measurement scale of components in internal control structure and objectives in the effectiveness of internal control 3.4.3 Testing of the hypotheses by using SEM, SEM multi groups Formal quantitative research: using confirmatory factor analysis – CFA, structural equation model – SEM, SEM multigroups To validate the measurement model of SEM, SEM multigroups with: Chi-square test (X2) < 3,00 Root Mean Square Error of Approximation (RMSEA) < 0,08 Comparative fit index (CFI) >0.90 Tucker – Lewis index (TLI) > 0,90 Standardized RMR (SRMR) < 0,08 3.5 Research sample and data analysis 3.5.1 Research sample Qualitative methods: 18 experts Preliminary quantitative methods: 130 agencies Formal quantitative methods: 380 agencies 3.5.2 Data analysis SPSS: Cronbach’s Alpha: Analyze - Scale –Reliability Analysis EFA: Analyze – Data reduction – Factor AMOS:CFA- Pattern matrix model builder SEM - Standardized estimates, Maximum likelihood SEM - Multiple groups 3.6 Measurement variables in the model 3.6.1 Measurement internal control structure 11 Measurement internal control structure: the control self – assessment method CSA (Adamec, Rexroad, Leinicke and Ostrosky, 2002) Measurement scale: likert from to (1 – strongly disagree, 7strongly agree) Internal control structure is a reflective measurement charactistic, measurement by five components Internal control structure Control environment CONENV 1: the governing body/board genuinely called management’s decisions into question and evinced realiable alternatives; CONENV 2: managers and management have not been overworked; CONENV 3: there has been a great deal of variation in control and management tasks CONENV 4: the personnel has understood the content and responsibilities; CONENV 5: the conduct of personnel has demonstrated commitment to honesty and the ethical values of the company Risk assessment RISASS 1: the goals for the entity’s operations had credible and in my opinion reasonable measures; RISASS 2: management actively evaluated both internal and external risks preventing the achievement of goals; RISASS 3: a risk analysis covering the intire entity was carried out during the last year; RISASS 4:those in managerial functions were aware of the risks of their areas of responsibility and knew how risk management was implemented; RISASS 5: in my opinion, the agency’s risks analysis and means of protection could have been more efficient Control activities CONACT 1: there were functioning controls in the agency’s processes which gave warning whenever something exceptional occurred; CONACT 2: as soon as something exceptional and undesired was noticed it was promptly and appropriately dealt with; CONACT 3: in the definition of task special attention was paid to authorisation and the special demands of tasks; CONACT 12 4: in my opinion the internal control measures should have been stepped up still further; CONACT 5: the intire personnel had updated jop descriptions Information and communication INFCOM 1: the personnel had no problems in obtaining information pertaining to their own work tasks; INFCOM 2: the reports forwarded to management were sufficiently clear and contained information relevant from the management perspective; INFCOM 3: sufficient information moved between the different divisions of the agency so that the smooth uninterrupted running of operation could be ensured; INFCOM 4: our agency’s information and communications system was not quite up to date with respect to function; INFCOM 5: the work was effficiently coordinated within the function and also with other functions Monitoring MOR 1:the operative information used in management was specified to the systems information of financial management; MOR 2: line managers take excellent care of day – to – day control; MOR 3:there is active control of how the pesonnel obey the operating instructions issued; MOR 4: we conducted annalysis based changes during the last year; MOR 5:management has not in the last year requested accounts of the accomplishment of control measures 3.6.2 Measurement the effectiveness of internal control Measurement the effectiveness of internal control: using the definition in INTOSAI GOV 9100 Measurement scale: likert from to (1 – strongly disagree, 7strongly agree) The effectiveness of internal control Executing orderly, ethical, EFFEXE 1: Executing orderly, ethical; economical, efficient and EFFEXE 2: Executing economical; effective operation; EFFEXE 3: Executing efficient and (EFFEXE) effective operation Fulfill accountability ACCOBL 1: Fulfill accountability 13 obligations; (ACCOBL) Complying with applicable laws and regulations; (COMLAW) Safeguarding resources against lost, misuse and damage (SAFRES) obligations on public funds; ACCOBL 2: Fulfill accountability obligations on fairness; ACCOBL 3: Fulfill accountability obligations on all aspects of performance COMLAW 1: Complying with applicable laws and regulations in budget; COMLAW 2: Complying with applicable laws and regulations on proper administration; COMLAW 3: Complying with applicable laws and regulations on environmental protection; COMLAW 4: Complying with applicable laws and regulations on anti-fraud and corruption acts SAFRES 1: Safeguarding resources against lost; SAFRES 2: Safeguarding resources against misuse; SAFRES 3: Safeguarding resources against damage 3.7 Data source and data collection 3.7.1 Data source Conduct by survey in the mixed methods including qualitative methods and quantitative methods 3.7.2 Data collection 3.7.2.1 Data collection for qualitative method Data collection: interview experts 3.7.2.1 Data collection for quantitative method Data collection: conducted survey, using questionnaire 3.8 Preliminary quantitative method and testing the concept’s scale 3.8.1 Processing of Preliminary quantitative method Processing of Preliminary quantitative method includes steps: Conducted survey with 130 agencies 14 Cronbach’s alpha coefficient assess reliability of measurement scale Exploratory factor analysis for internal control structure and the effectiveness of internal control 3.8.2 Sampling Public non-business agencies were researched, data collection through questionnaire, by interview face to face or email Time of collection data: May.2018 – Sep.2018 3.8.3 Descriptive statistics Agencies were surveyed with each field rate fit to rate in real 3.8.4 Analysis for ensuring the reliability of measurement scale Cronbach’s alpha coefficient assess reliability of measurement scale of five components in internal control structure and four objectives in the effectiveness of internal control Cronbach’s alpha results of all scales are reliable, the item-total correlation coefficients are high (α > 0,6), so we can use for EFA 3.8.5 Analysis for ensuring the valuable of measurement scale - EFA Conducted EFA for internal control structure (5 components) and the effectiveness of internal control (4 objectives), results show that there are reliable scales 3.8.6 Conclusion Results of measurement of internal control structure and the effectiveness of internal control are suit for prior studies CHAPTER RESEARCH RESULTS AND DISCUSSION 4.1 Introduction 4.2 Results of qualitative research 4.2.1 Data collection and sumerize The qualitative interview was conducted with 16 experts (8 experts face to face; experts by phone; experts by email), getting their opinion about the relationship between internal control structure and the effectiveness of internal control, and which the contingency 15 characteristics of public non-business agencies as a moderator in research model 4.2.2 Data analysis and discussion About the relationship between internal control structure and the effectiveness of internal control: 16/16 experts agree with having affecting and 12/16 experts said that it impacts positively The contingency characteristics of public non-business agencies as a moderator in research model: characteristics (running style of leader; field operating; annual operating results of party organization and social – political organizations in agencies; financial automony; impacting from managerial entity) 4.2.3 Testing valuable data 4.2.4 Findings Internal control structure affect to the effectiveness of internal control There are two contingency characteristics using as moderator in research model, including annual operating results of party organization and social – political organizations in agencies and financial automony 4.2.5 Measurement financial automony of the public non-business agencies Financial automony of public non-business agencies is a part of agency’s proactivity in regulations, getting four level 4.2.6 Measurement annual operating results of the political organization and the social - political organizations in the public nonbusiness agencies In present, annual results of party organization and social – political organization in public non-business agencies overall by party organization results, getting four level 4.3 Results of quantitative research 4.3.1 Sampling There were 57.995 public non – business agencies in Vietnam in 2016, with highest rate for education and training sector 72,08%; for health sector 10,62%; for other sectors 17,3% 16 Sampling: survey 380 agencies, after filted getting 353 agencies using in the formal quantitative research (education and training sector: 69,97 %; health sector: 10,48%; other sectors: 19,55%) 4.3.2 Analysis of internal control structure of the public non-business agencies in Vietnam 4.3.2.1 Confirmatory factor Analysis for internal control structure Conducted CFA for internal control structure (a reflective measurement charactistic, with components) Results showed that research model of internal control structure had an acceptable fit with: Chi-square/df = 1,966 < 3; TLI = 0,948> 0,9; CFI = 0,954 > 0,9 ; RMSEA = 0,052 < 0,080 4.3.2.1 Structrural equation model for internal control structure Analysis technique: Pattern matrix model builder, SEM from 353 agencies in formal quantitative research Results showed that research model of internal control structure had an acceptable fit with: Chi-square/df = 1,982 < 3; TLI = 0,947> 0,9; CFI = 0,952 > 0,9 ; RMSEA = 0,053 < 0,080 Standardized regression weight highest was 0,832 (information and communication), lowest was 0,752 (risk assessment) 4.3.3 Confirmatory factor Analysis for variables in model research the affecting of internal control to the effectiveness of internal control Conducted CFA for internal control structure and the effectiveness of internal control (two reflective measurement charactistics) Results showed that research model of internal control structure had an acceptable fit with: Chi-square/df = 1,604 < 3; TLI = 0,947> 0,9; CFI = 0,952 > 0,9 ; RMSEA = 0,041 < 0,080 Results showed that this model had an good fit with data collected from public non-business agencies 4.3.4 Evaluating the affecting of internal control to the effectiveness of internal control across SEM – research hypotheses testing 4.3.4.1 Research model and the research hypothese There were two hypotheses in this study, the author tested: 17 H1: Internal control structure affects positively to the effectiveness of internal control in public non-business agencies in Vietnam H2: Financial automony affects positively to the relationship between internal control and the effectiveness of internal control H3: Annual operating results of party oganization and social – political organizations affects positively to the relationship between internal control and the effectiveness of internal control Research model: Financial autonomy Internal control structure H1 + H2 + The effectiveness of internal control + H3 Annual operating results of party oganization and social – political organizations in agencies 4.3.4.2 Result of evaluating the affecting of internal control to the effectiveness of internal control across SEM Testing H1: Internal control structure impacts positively to the effectiveness of internal control in public non-business agencies in Vietnam Results showed that this research model had an acceptable fit with: Chi-square/df = 1,613 < 3; TLI = 0,946> 0,9; CFI = 0,950 > 18 0,9; RMSEA = 0,042 < 0,080 Results showed that this model had an good fit with data collected from public non-business agencies Accepted H1 Internal control structure affected positively and strongly to the effectiveness of internal control in public non-business agencies in Vietnam 4.3.5 SEM for congtingency characteristics affect to the relationship between internal control and the effectiveness of internal control 4.3.5.1 Moderation model research 4.3.5.2 Moderation model for financial autonomy Testing H2: Financial automony affects positively to the relationship between internal control and the effectiveness of internal control Results showed that this research model had an acceptable fit with: Chi-square/df = 1,443 < 3; TLI = 0,916> 0,9; CFI = 0,922> 0,9; RMSEA = 0,036 < 0,080 Results showed that this model had an good fit with data collected from public non-business agencies Table 4.7: Testing hypothese results Chi -square df p-value Results Model Fully constrained 1889,994 1310 Unconstrained Number of group Difference 1893,523 1311 0,06 3,529 Groups are different from research model With P-value = 0,060, accepted H2 with reliability 90% Financial automony affects positively to the relationship between internal control and the effectiveness of internal control 4.3.5.3 Moderation model for annual operating results of the party organization and the social - political organizations in the public nonbusiness agencies 19 Testing H3: Annual operating results of party oganization and social – political organizations affects positively to the relationship between internal control and the effectiveness of internal control Results showed that this research model had not an acceptable fit with: Chi-square/df = 1,754 < 3; TLI = 0,876< 0,9; CFI = 0,885< 0,9; RMSEA = 0,036 < 0,080 Had not an acceptable H3 4.6 Findings Hypotheses H1 and H2 were accepted H1: Internal control structure impacted positively to the effectiveness of internal control in public non-business agencies in Vietnam H2: Financial automony affected positively to the relationship between internal control and the effectiveness of internal control CHAPTER CONCLUSION AND IMPLICATIONS FOR POLICY 5.1 Introduction 5.2 Conclusion 5.2.1 Affecting of components to internal control structure Evaluating internal control structure in public non-business agencies in Vietnam showed that information and communication impacted highest (0,832), risks assessment impacted lowest (0,832) 5.2.2 Affecting of internal control structure to the effectiveness of internal control Internal control structure impacts positively and strongly to the effectiveness of internal control in public non-business agencies in Vietnam This result fit to the prior research 5.2.3 Financial autonomy affects to relationship between internal control structure and the effectiveness of internal control 20 SEM multi groups on two group: high level and low level Financial automony affected positively to the relationship between internal control structure and the effectiveness of internal control If agency were financial automony with high level, internal control structure would have impacted strongly to the effectiveness of internal control and opposite 5.3 Implications for policy 5.3.1 About pratice Need to building internal control structure efficient in public non-business agencies in Vietnam and raising financial autonomy 5.3.2 In theory Finding out an contingency characteristic, financial autonomy, in moderator model researching evaluating the affecting of internal control structure to the effectiveness of internal control 5.4 Limitations and future research directions This research used on total contingency characteristics that experts provided Did not analysis in detail of internal control structure in public non-business agencies in Vietnam CONCLUSION This study answered two question that task in the introdution part: (1) results showed that Internal control structure impacted positively to the effectiveness of internal control in public nonbusiness agencies in Vietnam; (2) Financial automony, as a moderator variable, affected positively to the relationship between internal control structure and the effectiveness of internal control in public non-business agencies in Vietnam Findings out a moderator variable in researching relationship between Internal control structure and the effectiveness of internal control is a new contribution in this thesis 21 LIST OF WORKS OF THE AUTHOR Nguyen Thi Hoang Lan et al (2015) Bulding internal control system framework for public non-business agencies in agriculture and rural development in Vinhlong Research Nguyen Thi Hoang Lan (2018) Improving performance of public non-business agencies by internal control Finance Review, May 2018, p 38-40 Nguyen Thi Hoang Lan and Lam Thi Truc Linh (2018) Bulding effective internal control structures for entities in public sector Accounting & Auditing Review, May 2018, p 47-49 Nguyen Thi Hoang Lan (2019) Evaluating the affecting of internal control structure to the effectiveness of internal control in public non-business agencies Accounting & Auditing Review, Mar 2019, p 85-89 ... environment of public non – business agencies in Vietnam 2.3.2.1 Socialist – oriented market economy of Vietnam Socialist – oriented market economy of Vietnam was definited in Document of the 12th National... internal control in public non – business agencies in Vietnam The subject of survey and the scope of study: public non – business agencies in Vietnam The period of time for data collection: from 01/05/2018... development in Vietnam Quantitative method: Evaluating the affecting of internal control structure to the effectiveness of internal control in public non – business agencies in Vietnam New contributions