Nghiên cứu ảnh hưởng của các thành phần kiểm soát nội bộ đến hiệu lực kiểm soát nội bộ của doanh nghiệp xây dựng công trình giao thông việt nam tt tiếng anh

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF TRANSPORT AND COMMUNICATION ĐỖ THỊ HUYỀN STUDY ON THE IMPACT OF INTERNAL CONTROL COMPONENTS ON THE EFFECTIVENESS OF INTERNAL CONTROL OF VIETNAM TRANSPORT CONSTRUCTION ENTERPRISES Major: Construction management Code: 9.58.03.02 SUMMARY OF ECONOMIC THESIS HÀ NỘI - 2020 This thesis is made at University of Transport and Communication Professional adviser: Associate Professor - Ph.D Vu Trong Tich Reviewer 1: Reviewer 2: Reviewer 3: This thesis will be presented to the Thesis Committee of University of Transport and Communication at: At the day month year This thesis can be found in the library: - The library of University of Transport and Communication; - National Library of Viet Nam INTRODUCTION Urgency of the thesis topic Transport construction enterprises play an important role in the development of the national traffic network, contributing to promoting the socio-economic development of the country However, recently, the effectiveness of the internal control (abbreviated as IC) of VietNamese transport construction enterprises (abbreviated as VITC) has not been high The question is how to improve the effectiveness of the IC of VITC? Firstly, it is necessary to clarify the factors affecting the effectiveness of the IC of the enterprises Secondly, it is necessary to clarify the operating characteristics of transport construction enterprises, as well as the impact of these characteristics on the IC components of transport construction enterprises Third, it is necessary to determine the degree of influence of each element of IC on the effectiveness of the IC of the VITC This is one of the bases in order to be able to offer appropriate solutions to improve the effectiveness of IC When reviewing related domestic and international studies, the author found that interest has been given on topic of IC and the impact of each factor on its effectiveness However, there is no in-depth and comprehensive research on the impact of components of IC on the effectiveness of IC in VITC Therefore, studying and clarifying this issue will contribute to helping VITC find suitable solutions to improve the effectiveness of IC Based on this, the author chose the following topic: “Study on the impact of internal control components on the effectiveness of the internal control of VietNamese transport construction enterprises" Research objectives Assessing the impact level of components of IC on the effectiveness of the IC of VITC as a basis for proposing solutions for improving the effectiveness of the IC of VITC Research object and scope Research object: The research object of the thesis is the impact of components of IC on the effectiveness of the IC of VITC Research scope: (1) In terms of content: Studying the impact of the components of IC on the effectiveness of the IC of VITC in terms of corporate governance (2) In terms of space: The study was conducted in medium and large-scale VITC in the field of railway construction, road construction; excluding foreign and foreign invested enterprises in Vietnam (3) In terms of time: The research period is from 2016 to 2019 Research framework Step 1: Determine the research content, research purposes, the urgency of the research issue; Step 2: Review previous studies related to the topic Step 3: Study the theoretical andpractical basis of the research content and propose the research model; Step 4: Apply research methods to conduct research Expected results of the study: Assess the impact of IC components on the effectiveness of IC; on the basis of which propose solutions to improve IC components and effectiveness of the IC Scientific and practical significance of the thesis Scientific significance: The thesis systematizes and deepens the theory of IC components, the effectiveness of IC; the impact of IC components on the effectiveness of the IC of the VITC; points out the distinctive characteristics of VITC which affect the effectiveness of their IC Practical significance: The thesis assesses the reality of IC components and the effectiveness of the IC of VITC; builds the model of the impact of IC components on the effectiveness of the IC of VITC; proposes solutions to improve the effectiveness of the IC of the VITC with both theoretiacal and practical significance The thesis serves as the reference material for researchers about IC components and the effectiveness of the IC of VITC, for VITC when designing and operating the IC system at their units At the same time, the thesis can become a reference material for teaching and studying in the fields off construction management, economics, Structure of the thesis In addition to the Introduction and Conclusion, the thesis includes main chapters Chapter 1: Literature review; Chapter 2: Theoretical, practical bases and research model; Chapter 3: Research methodologies; Chapter 4: Reality of IC and the impact of IC components on the effectiveness of the IC of VITC; Chapter 5: Solutions to improve the components of IC which contribute to improving the effectiveness of the IC of traffic construction enterprises in Vietnam CHAPTER 1: LITERATURE REVIEW 1.1 Overview of international studies 1.1.1 Studies on Internal Control Governance-oriented studies: COSO (2013) established a general framework for IC, providing a broad vision and governance Nerissa C Brown (2008) demonstrated the positive effect of IC rules on income quality Based on a large-scale survey of manufacturing companies in Kenya, Kamau Caroline (2013) showed that effective IC has a positive, significant relationship with indicators of financial performance Acording to the study of Thomas (2016), if the head of the executive unit does not show strong support for IC, the organization will not exercise good IC Hammersely (2017) showed a link between weak IC and the decline in the market price of corporate shares Studies on IC in relation to auditing: Masood Fooladi, Maryam Farhadi (2011) identified impact and the importance of distictive IC environments to planning and directing an audit Faudziah Hanim Fadzil (2005) showed that compliance with standards of professional practice by internal auditors affects the quality of corporate IC 1.1.2 Studies on affection of factors on the effectiveness of Internal Control Angella Amudo (Uganda, 2009) studies the impact of factors of control environment, risk assessment, control activities, information and communication, monitoring, and information technology to the effectiveness of IC in Uganda public sector projects Sultana (2011), CTGamage (2014) pointed out the impact of five IC components (control environment, risk assessment, control activities, information and communication, and monitoring) to the effectiveness of IC Additionally, other studies showed the impact of each element on the effectiveness of IC like Philip Ayagre (2014) 1.2 Overview of domestic studies 1.2.1 Studies on Internal Control Governance-oriented studies: Pham Binh Ngo (2011), Bui Thi Minh Hai (2012), Nguyen Thi Lan Anh (2013), Chu Thi Thu Thuy (2016), Nguyen To Tam (2014), Vo Thu Phung (2016) ), Nguyen Thanh Trang (2016), Dang Thuy Anh (2017) Studies on IC in relation to auditing: the textbook named "Auditing theory" of the Academy of Finance, the textbook on Financial Audit of the National Economics University, the book on Internal Audit in Business of Dr Phan Trung Kien, PhD thesis by Nguyen Thanh Trung (2017) 1.2.2 Studies on the effectiveness of Internal Control Ho Tuan Vu (2016) identified the model of factors that affect the effectiveness of the IC system including control environment, risk assessment, control activities, information and communication, monitoring, group benefits, and political institutions 1.3 Research gap and thesis objectives 1.3.1 Conclusions from the literature review The similarities among studies about the impact of factors on the effectiveness of IC are that they all show the important impact of the five IC components (control environment,risk assessment, control activities, information and communication, and monitoring activities) on the effectiveness of IC Also, when it comes to the research model with the effectiveness of IC as the dependent variable, the independent variables all contain five IC components In addition, in some other studies, some other factors have been added such as political institutions, group benefits, and information technology 1.3.2 Identifying the research gap From studying domestic and foreign research projects related to the topic, the author finds that improving the effectiveness of IC brings many benefits to VITC, especially when these enterprises must with share the market with foreign contractors in the current globalization context However, in Vietnam, there is no research on the impact of these factors on the effectiveness of IC of VITC It can be confirmed that this is a gap that has not been paid attention to and studied The thesis focuses on solving this open problem 1.3.3 Research objectives of the thesis From the perspective of inheriting and continuing to develop previous researches, the thesis studies the impact of IC components on the effectiveness of IC of VITC with the following specific research tasks: - General research objective: Evaluate the impact of IC components on the effectiveness of IC of VITC On that basis, the thesis proposes solutions to improve the effectiveness of the IC of VITC - Specific objectives: (1) Determine the components of IC from the perspective of corporate governance, based on the theoretical basis of the IC of COSO; (2) clarify the theory of the effectiveness of IC, the impact of IC components on the effectiveness of IC; (3) evaluate the reality of IC components and the reality of the effectiveness of IC of VITC; (4) build a model to evaluate the impact of IC components on the effectiveness of the IC of VITC; (5) propose solutions to improve the IC components in order to enhance the effectiveness of IC of the VITC In order to carry out the proposed research tasks, the corresponding research questions are asked as follows: Question - What is IC? What are IC components? What is the effectiveness of IC? Question - How the production characteristics of VITC affect IC? Question - What is the reality of IC components and the reality of the effectiveness of IC at VITC? Question - what is the model about the impact of IC components on the effectiveness of IC of the VITC? How is the impact of each element on the effectiveness of IC of the VITC? Question - How should the IC components of the VITC be improved to enhance the effectiveness of IC? CONCLUTION OF CHAPTER Chapter of the thesis presents a literature review on IC research, thereby clarifying the following issues: - The published works of foreign authors studied IC in the direction of governance, towards supporting independent unit and internal audit, towards impact on business value and on quality of accounting information, researching factors impact on the effectiveness of IC Besides, these studies also confirm that the results may change when it is applied in different conditions in countries with different characteristics - The studies on IC in Vietnam have mentioned many different issues related to IC such as: the impact of IC components on performance; the relationship among IC, fraud risk and audit plan in auditing financial statements; the organization of IC, IC of production costs, - Regarding the impact of IC components on the effectiveness of IC, there have been many studies around the world in banking, education, public sector, There are, however, very few studies in the field of transport construction Locally, no study is available on the impact of IC components on the effectiveness of IC of VITC On that basis, the thesis proposes research tasks and research questions as a the basis for the presentation of the next chapters CHAPTER 2: THEORETICAL AND PRACTICAL BASES AND REASEARCH MODEL 2.1 Internal Control of enterprises 2.1.1 The concept of Internal Control IC is a process consisting of activities carried out and maintained by the board of management, board of directors and other individuals within all units of an organization to provide reasonable assurance of this organization's ability to achieve goals, ensure the reliability of financial statements, ensure operational efficiency, and comply with relevant laws and regulations 11 theory, Chaos theory, uncertainty theory, psychosocial theory in organizations, stakeholder theory 2.3.2 Business characteristics of transport construction enterprises affect components of Internal Control Production activities and products of VITC have quite different characteristics compared to other manufacturing industries, such as: Manufacturing activities take place in a large area, in many different localities; Construction objects often have large volume, great value, relatively long construction time; construction products are often unique and of singular nature; construction production usually takes place outdoors, affected directly by environmental factors With these characteristics, the issues in IC of VITC are as follows: they must pay attention to risk assessment, strengthen the control point for work processes, have supporting units for direct production; need to build effective communication channels and strengthen monitoring activities 2.3.3 Proposal of research model and hypotheses about the impact of components of Internal Control on the effectiveness of the Internal Control of transport construction enterprises Purpose of determining research models: Evaluate the impact of IC components on the effectiveness of IC, suggest solutions to improve IC components, thus helping to improve effectiveness of IC The basis for proposing research model: (i) the selective inheritance of previous studies; (ii) characteristics of VITC Content of research model: 12 Figure 2.3: The impact research model of Internal Control components on the effectiveness of the Internal Control of VITCs - Research methodologies: Hypothesis H1: The control environment has a positive impact on the effectiveness of the IC of the VITC Hypothesis H2: Risk assessment has a positive impact on the effectiveness of the internal control of VITC Hypothesis H3: Control activities have a positive impact on the effectiveness of the IC of Vietnamese transport construction enterprise Hypothesis H4: Information and communication have a positive impact on the effectiveness of the IC of VITC Hypothesis H5: Monitoring has a positive impact on the effectiveness of the IC of the VITC 13 CONCLUSION OF CHAPTER Chapter of the thesis focuses on clarifying the following issues: (1) Theoretical and practical basis of IC; (2) Clarifying IC components including: control environment, risk assessment, control activities, information and communication, monitoring; (3) Systematize theories of the effectiveness of IC, including the concept of the effectiveness of IC, the criteria for evaluating the effectiveness of IC and the factors that impact the effectiveness of IC (4) The background theories serve as the basis for explaining the impact of IC components on the effectiveness of IC (5) Propose a research model and hypothesize to study the impact of IC components on the effectiveness of IC CHAPTER 3: RESEARCH METHODOLOGIES 3.1 Overview of the research objects – VITC In this part, the thesis presents an overview of the quantity, turnover, and labor of VITC corresponding to different scales 3.2 Survey methods 3.2.1 Design of questionnaires Questions designed in the survey include: Questions about control environment (26 questions), questions about risk assessment (10 questions), questions about control activities (14 questions), questions information and communication (8 questions), and questions about monitoring (6 questions) 3.2.2 Subjects of questionnaire Subjects of survey questionnaires include those who work in the following positions in VITC: General Director, Deputy 14 General Director; Director, Deputy Director of the factory; Head, deputy head; Control Board; Internal audit; Staff 3.2.3 Survey steps (1) Design questionnaire for survey; (2) Send questionnaires to experts to get comments; (3) Edit and send questionnaires (4) Input data and process information 3.2.4 Survey sample Number of studied samples n = 250, meeting the sample size requirement 3.3 Methods of analysis and synthesis The thesis uses analysis and synthesis method to: analyze the characteristics of production that affect IC of VITC, analyze the reality of IC components and the reality of the effectiveness of the IC of VITC; synthesize, evaluate achievement, limitations and explain the cause of the limitations of IC components 3.4 Quantitative research method 3.4.1 Process and method of quantitative research analysis Step 1: Raw data process Step 2: Assessment of the reliability of the scale Step 3: Exploratory Factor Analysis Step 4: Correlation analysis Step 5: Regression analysis and testing the regression model 3.4.2 Quantitative data analysis The scales of MT, RR, HD, TT, GS are reliable Correlation coefficient r between the dependent variable and the independent variables is equal to 1, showing that the dependent 15 variable HL and the independent variables MT, RR, HD, TT, GS have a close linear relationship Therefore, these independent variables will be included in the regression model to account for the HL dependent variable Regression analysis shows the causal relationship between the dependent variable HL and the independent variables MT, RR, HD, TT, GS HL = -0,527 + 0,261MT + 0,209 RR + 0,268 HD+ 0,211 TT+ 0,105 GS The results of the regression test give the following results: (1) R2 = 0.804: the model is evaluated as good, the independent variables included (MT, RR, HD, TT, GS) explain 80.4% of the variation of the dependent variable (HL), The remaining 19.6% are due to variables outside the model and random errors (2) Durbin-Watson value of the model is equal to 1,693: