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Impact of Internal Control on Audit Program Effectiveness: The Case of Vietnam

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  • Thi Que Nguyen
  • Manh Dung Tran
  • Thi Viet Ha Hoang

Abstract

This research is conducted to examine the relationship between components of risk assessment, environmental control and control activities of internal control system and the effectiveness of the audit program in Vietnamese firms. Data were collected by sending questionnaires to management, internal auditors, and accountants of Vietnam firms and feedback of 87 responses. By testing Cronbach¡¯s Alpha, Exploratory Factor Analysis (EFA), Analysis of Variables (ANOVA), the results show that control environment, risk assessment and control activities contribute significantly to an effective audit program. These results indicate that Vietnamese firms lack required experiences to cope with the current instruments of internal control assessment.

Suggested Citation

  • Thi Que Nguyen & Manh Dung Tran & Thi Viet Ha Hoang, 2018. "Impact of Internal Control on Audit Program Effectiveness: The Case of Vietnam," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(9), pages 1-1, September.
    • Handle: RePEc:ibn:ijefaa:v:10:y:2018:i:9:p:1
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    2. Sorinel Domnisoru & Sorin-Sandu Vinatoru, 2008. "Auditor independence, audit committee quality and internal control weaknesses," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(11), pages 7-12, November.
    3. Mcdaniel, Ls, 1990. "The Effects Of Time Pressure And Audit Program Structure On Audit Performance," Journal of Accounting Research, Wiley Blackwell, vol. 28(2), pages 267-285.
    4. Weber, R, 1978. "Auditor Decision-Making On Overall System Reliability - Accuracy, Consensus, And The Usefulness Of A Simulation Decision Aid," Journal of Accounting Research, Wiley Blackwell, vol. 16(2), pages 368-388.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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