The Relationship between Political Institutional Factors and
Internal Audit Effectiveness in Vietnamese Enterprises
1Le Thi Huong Tram, 2Nguyen Nguyen Zen, 3Nguyen Thuy Vinh
1,3Accounting Department, University of Labour and Social Affairs, Vietnam
2Insurance Department, University of Labour and Social Affairs, Vietnam
https://doi.org/10.47191/jefms/v6-i9-45
ABSTRACT:
Using qualitative research methods, we have clarified the content of internal audits and the effectiveness of internal audits. A literature review has shown that the Political Institutions factor has not received much research attention in Vietnam. That's why we identified the gap and conducted this research. Data collected from interviews with 20 experts working in the field of accounting and auditing were analyzed using King's (2004) format and Cresswell's (2003) analysis process. The analysis results have shown that the Political Institutions factor, and its measurement factors are regulatory capacity, political stability, legal effectiveness, police accountability, and corruption control impact on internal audit effectiveness. Next, the study conducted a survey with 80 employees working in the field of accounting and auditing. This is a research step to ensure transparency in determining influencing factors. The results of this survey are consistent with the direct interview method. This means that the effectiveness of internal audits is affected by political and institutional factors.
KEYWORDS:
Enterprises; Internal audit effectiveness; Political institutions; Relationships
REFERENCES:
1) Acemoglu, D.; Gallego, F., & Robinson, J., (2014). "Institutions, Human Capital, and Development". Annual Review of Economics. 6:875-912: 875–912. doi:10.1146/annurev-economics-080213-041119. hdl:1721.1/95986.
2) Acemoglu, D.; Johnson, S., & Robinson, J., (2005). "Institutions as a Fundamental Cause of Long-Run Growth". Handbook of Economic Growth. 1: 385–472. doi:10.1016/S1574-0684(05)01006-3.
3) Caporaso, James A.; Jupille, Joseph, eds. (2022), "Introduction: Theories of Institutions", Theories of Institutions, Cambridge University Press, pp. 1–15, doi:10.1017/9781139034142.001, ISBN 978-0-521-87929-3
4) George. D., (2015). “Factors associated with Internal Audit Effectiveness: Evidence from Greece”. Journal of Accounting and Taxation, Vol. 7(7), pp. 113-122, July, 2015).
5) Greif, A., & Laitin, D. D., (2004). A Theory of Endogenous Institutional Change. The American Political Science Review. 98 (4): 635. doi:10.1017/S0003055404041395. ISSN 0003-0554. JSTOR 4145329. S2CID 1983672.
6) Keohane, R. O., (1988). "International Institutions: Two Approaches". International Studies Quarterly. 32 (4): 379–396. doi:10.2307/2600589. ISSN 0020-8833. JSTOR 2600589. S2CID 145468285.
7) Knight, J., (1992). Institutions and social conflict. Cambridge University Press. pp. 1–3. ISBN 978-0-511-52817-0. OCLC 1127523562.
8) Levitsky, S., & Murillo, M. V., (2009). "Variation in institutional strength". Annual Review of Political Science. 12: 115–133. doi: 10.1146/annurev.polisci.11.091106.121756.
9) Mahoney, J.; Thelen, K., & eds. (2009). Explaining Institutional Change: Ambiguity, Agency, and Power. Cambridge: Cambridge University Press. p. 4. doi:10.1017/cbo9780511806414. ISBN 978-0-521-11883-5.
10) Marquis, C., & Tilcsik, A., (2016). "Institutional Equivalence: How Industry and Community Peers Influence Corporate Philanthropy" (PDF). Organization Science. 27 (5): 1325–1341. doi:10.1287/orsc.2016.1083. hdl:1813/44734. ISSN 1047-7039.
11) North, D., (1990). Institutions, Institutional Change, and Economic Performance. Cambridge University Press.
12) North, D. C., (1991). Institutions. Journal of Economic Perspectives. 5 (1): 97–112. doi:10.1257/jep.5.1.97. ISSN 0895-3309.
13) Ngoc, D. X., & An, L. V., (2003). Contemporary world political institutions. Hanoi: National Political Publishing House.
14) Salehi, T., (2016), “Investigation Factors Affecting the Effectiveness of Internal Auditors in the Company: Case Study Iran”. Review of European Studies; Vol. 8, No. 2; 2016).
15) Scott, W. R., (1995). Institutions and Organizations. Thousand Oaks, CA: Sage.
16) Scott, W. R., (2008). Institutions and Organizations: Ideas and Interests. Los Angeles, CA: Sage Publications
17) Streeck, W., & Thelen, K. A., (2005). Beyond Continuity: Institutional Change in Advanced Political Economies. Oxford University Press. pp. 9–11. ISBN 978-0-19-928046-9.
18) Tan, D. D., et al., (2000). The process of formation and development of Vietnam's political institutions since 1945 until now. Proceedings of the ministerial-level scientific research project. Ho Chi Minh National Academy of Politics.
19) Vu, H. T., (2016). Factors affecting the effectiveness of the internal control system in Vietnamese commercial banks. Doctoral thesis in economics, Ho Chi Minh City University of Economics.
