JEFMS Journal

ABSTRACT:

The article has presented the theoretical basis of the control environment and the factors that make up the control environment in the enterprise. Building a controlled environment is one of the principles of internal control, these two factors have a relationship, support, and promote the completion and effectiveness of each other. Research results have shown the importance of internal control for businesses. Identify limitations in the control environment such as insurance enterprises not issuing specific policies on integrity and ethical values; the element of commitment on capacity not being guaranteed; The internal control department is not completely independent from the business management apparatus or the policy on training and retaining personnel has not been respected. Along with the new regulations in the Law on Insurance Business, the life insurance industry development project developed by the Vietnamese government has provided a solid basis for businesses to improve the control environment, thereby improving the quality-of-life effective internal control. The research team also based on the existing points and the ability to improve the effectiveness of internal control to propose some solutions to improve the control environment. Accordingly, creating a controlled environment in the insurance business, focusing on business ethics, perfecting the organizational structure in a compact direction, ensuring the efficiency of each department, and ensuring the good implementation of the objectives of the unit, separating the activities of the Board of Directors and the internal control department, limiting the overlapping task assignment and regularly renewing the human resource policy are the solutions offered.

KEYWORDS:

Control environment, internal control, Life insurance enterprises, Vietnam

REFERENCES:

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