Key determinants of internal control system effectiveness in Ho Chi Minh City financial firms

Abstract

To evaluate the influence of factors on the effectiveness of the internal control system at financial companies in Ho Chi Minh City. The study surveyed 20 financial companies in Ho Chi Minh City with 140 survey subjects, including team leaders, department heads, department heads, deputy managers, specialists and employees. The results show that 6 representative factors affect the effectiveness of the internal control system of financial companies in Ho Chi Minh City and are ranked in descending order of influence including: control environment, information technology, risk assessment, control activities, information and communication, and monitoring activities. This study provides empirical evidence on factors affecting the effectiveness of internal control systems at financial companies in Ho Chi Minh City; thereby proposing a number of recommendations to improve the effectiveness of internal audit in financial companies in Ho Chi Minh City.