Factors influencing the effectiveness of internal control in cement manufacturing companies

Abstract

This research approaches and used the 2013 Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) with a view to assessing the impact of the factors: (1) Control environment, (2) Risk assessment, (3) Information and communication, (4) Control activities and (5) Monitoring on the effectiveness of internal control at cement companies. The research was carried out through a survey of 210 managers and employees at Vietnamese cement companies with the support of SPSS software and assessed scale reliability through using the Cronbach`s Alpha coefficient and the method of exploratory factor analysis (EFA). The research results show that the factors above had positive relationship with the effectiveness of internal control. Also, on such basis, the author gave recommendations for maintaining and promoting the effectiveness of internal control to managers at cement companies.