TomTat e

MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HO CHI MINH CITY
-------------By

HO TUAN VU

THE FACTORS AFFECTING THE EFFECTIVENESS OF INTERNAL
CONTROL SYSTEMS OF THE COMMERCIAL BANKS IN VIETNAM

Major : Accounting
Code : 62.34.30.01

ECONOMICS PHILOSOPHY DOCTOR THESIS

PROFESSIONAL ADVISER
ASSOCIATE PROFESSOR, PHD: VO VAN NHI

Ho Chi Minh City - 2016


This thesis is made at:
Univercity of Economics Ho Chi Minh City
Professional adviser:
Associate Professor - Ph.D Vo Van Nhi
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This thesis will be presented to the Thesis Committee at ...

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This thesis can be found in the library:…………….…......
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INTRODUCTION
1. The urgency of research
In Vietnam, commercial banks are not only the largest donor, providing leading
banking services for businesses, but also as an important tool for the State to direct the
movement to financial market, in order to achieve the objective, monetary policy in
each period; is the main force in international economic integration of monetary,
banking. However the performance of the bank is not commensurate with its true
potential, specifically in the expression as: bad debts continued to rise, low capital
efficiency, banks fall into the predicament forced to merge or be acquired by stateowned banks. On the other hand, when studying the characteristics of the commercial
banks in Vietnam, the researcher found that the operation of the system of Vietnam's
commercial banks also have unique characteristics, such as: deep intervention,
administrator of the state to serve political, social goals. Management activities of
each bank itself bears on the strong impact from the authorities on the outside of the
system of state management. Besides, interest groups in banks also have affected the
management and efficiency of the banking activities. In other words, besides the
intrinsic elements of management activities in general and internal control systems in
particular, deeply influenced by the state and group interests at the same time as well
as individual characteristics of the system of commercial banks in Vietnam.
With this situation, to ensure economic stability can be deep integrated with the
region and the world, especially when Vietnam participates in AEC and TPP, state
bank of Vietnam has taken many measures to stabilize the currency market as:
requirement to increase charter capital, increase the required reserve ratio, merger,

acquisition of weak banks,... In this context, to be able to survive and grow, each
commercial bank itself must have solutions to manage their banking activities to
ensure effectiveness. In the solution to the banking system to ensure effectiveness,
develop sustainably, stably and strengthen the effectiveness of the internal control
systems of commercial banks was particularly interested.
When researching the national and international studies regarding factors affecting
the effectiveness of internal control systems of commercial banks, the author found
that the world had some study authors and identify factors affecting the effectiveness
of the internal control systems of banks such as: control environment; information and


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communication; risk assessment;

control activities; monitoring; information

technology,...However, there is no research in the country determined what factors can
affect the effectiveness of the internal control system in banks, especially commercial
banks. Therefore, the research to find out the internal factors and external factors that
affect the effectiveness of the internal control systems in commercial banks to improve
their management capacity of banks, to ensure banks operate effectively, meet the
goal of financial stability monetary base of the country is an urgent requirement today.
Stemming from this urgency, the author has choosen topic: "The factors affecting the
effectiveness of internal control systems of commercial banks in Vietnam".
2. Research objectives
+ Comprehensing factors affecting the effectiveness of internal control systems
of commercial banks in Vietnam
+ Indentifying factors affecting the effectiveness of internal control systems of
commercial banks in Vietnam

+ Proposing research's model factors affecting the effectiveness of internal
control systems of commercial banks in Vietnam
3. Research questions
Q1: Which factors do affect the effectiveness of the internal control systems of
commercial banks in Vietnam?
Q2: What is the relationship between: control environment; information and
communication; risk assessment; control activities; monitoring; political institutions;
group interests?
Q3: The level of the impact of these factors on the effectiveness of internal
control systems commercial banks in Vietnam?
4. Object and scope of the research
- Research’s object: Research has focused on factors affecting the effectiveness of
internal control systems of commercial banks in Vietnam.
- Research’s scope: The study has been carried out to Vietnam commercial banks
not include the foreign commercial banks, commercial banks with foreign capital in
Vietnam.


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5. Research methodology
The thesis has used mixed research method which is the combination of qualitative
and quantitative research methodology with the detailed following:
- Qualitative research methodology: having used survey interviews with qualified
experienced experts directly related to the field of study to induct and affirm the
determinants affecting the effectiveness of internal control systems of commercial
banks in Vietnam.
- Quantitative research methodology: on the basis of factors have been identified,
which will start measuring the impact of factors by experiment and quantitative
methods are used to explain these effects.

6. Significance of the research
* Scientific significance: The thesis has explored the factors affecting the
effectiveness of the internal control system of the commercial banks in Vietnam and
has indicatied the level of the order as well as the affecting of these factors on the
effectiveness of internal control systems in commercial banks Vietnam.
* Practical significance: Based on the discovery and point out the factors that
affecting the effectiveness of the internal control systems of commercial banks in
Vietnam in a systematic way that the thesis may be references to organizations and
individual research on internal control systems and risk system in general and the
internal control systems of commercial bank in particular.
7. The structure of the thesis
Chapter 1: Overview the previous studies
Chapter 2: Theoretical foundations and research's models
Chapter 3: Research methods
Chapter 4: Results of research and inference
Chapter 5: Conclusion and policy implications.


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CHAPTER 1
OVERVIEW OF PREVIOUS STUDIES
1.1. The foreign studies
1.1.1. The study on the internal control system
- Studies on internal control systems towards governance: COSO (2001), COSO
(2004): conducting risk management business systems researches. In addition,
Merchant, K.A (1985); Anthonny, R.N và Dearden, J.Bedford (1989); Laura F.Spira
và Micheal Page (2002); Yuan Li, Yi Liu, Younggbin Zhao (2006) believe that
internal control has the role of market-oriented business and impacts new product
development. Mawanda, (2008) believe in relationship of internal control systems and

financial performance at the university in Uganda.
William & Kwasi, (2013) concluded that the Internal control systems support
managers and auditors in the performance of their duties. Varipin Mongkolsamai &
Phapruke Ussahawanitchakit, (2012) concluded that: the impact of internal control
strategies to the performance of listed companies in Thailand.
- Studies on the internal control system in the direction of independent audit and
internal audit: In the field of an independent audit, the US auditing standards also
switched to using COSO's report underlying assessment of internal control systems,
includes: SAS 78 (1995), SAS 94 (2001), ISA 315, ISA 265. In the field of internal
audit, some studies also mention internal controls in relation with the internal audit:
Victor Z.Brink và Herbert Witt (1941); Karagiogos, Drogalas, Dimou, (2014) studied
the interaction between the components of the internal control systems and
effectiveness of internal audit.
- Studies on the impact of the internal control system to the value of the enterprise:
Ge & McVay, (2005); Shenkir & Walker, (2006); Doyle, (2005); Hammersley, (2007)
- Studies on the relationship between the internal control system and the quality of
financial accounting information of listed: J.Altamuro,(2010); Angella.A, (2009);
DeFond (1991).
1.1.2. The study on the factors affecting the effectiveness of internal control systems
Angella Amudo & Eno L. Inanga (2009) believe that 6 factors that may affect the
effectiveness of internal control systems include: (1) control environment, (2) risk
assessment, (3) information and communication system, (4) control activites, (5)


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monitoring, (6) information technology. Sultana & Haque, (2011); Gamage &
colleagues (2014) believe that there are 5 factors that affect the effectiveness of
internal control systems include: (1) control environment, (2) risk assessment, (3)
information and communication system, (4) control activities, (5) monitoring.

Besides the above mentioned study, also studies the effects of each component of
the internal control systems to the effectiveness of internal control systems such as:
Research on the control environment: D"Aquyla, (1998) & Ramos (2004), Rae &
Subramaniam (2006); Research on risk assessment: Lannoye (1999), Walker (1999);
Research on information and communication: Steihoff (2001), Hevesi (2005);
Research on the control activities: Jenkinson (2008), Ramos (2004); Research on
monitoring: Springer (2004), Muhota (2005), Diamond (1984), Calomiris & Khan
(1991); Research on political institutions: Zingales (1998), Beck and colleagues
(2003), Kaufmann & colleagues (2009), Kenjegalieva &Simper (2011); Research on
the group interests : Rawls, J.A (1971), Frank Scarpatti (1977), Allan J.Cigler &
Burdett A. Loomis (1995).
1.2.The national studies
1.2.1.The studies related to theories of internal control system
Economic university of Ho Chi Minh City (2007); Nguyen Quang Quynh (2006);
Tran Thi Giang Tan & audit department (2012); Pham Quang Huy (2014).
1.2.2. Studies on internal control systems in specific units
Ngo Tri Tue & colleagues (2004); Pham Binh Ngo (2011); Nguyen Thu Hoai
(2011); Bui Thi Minh Hai (2012); Nguyen Thi Lan Anh (2013); Ha Xuan Thach &
Nguyen Thi Mai Sang (2016)
1.2.3. Studies on internal control systems in commercial banks
Phan Hung An (2005), Hoang Huy Ha (2006); Dinh Pha Minh (2006); Vu Thuy
Ngoc (2006); Nguyen Duc Thao & Tran Quoc Dat (2006); Viet Dung (2007); Phan
Van Tinh (2007); Dao Van Phuc & Le Van Hinh, (2012); Nguyen Thi Huong Lien
(2015) in their research showed that the internal control systems in commercial banks
in Vietnam still has several shortcomings and has built the modern effective control
model meeting the needs of integration in the new period.
Vo Thi Hoang Nhi & Le Thi Thanh Huyen (2014) in their research showed the
reality of the internal control systems in the commercial banks in Vietnam and provide

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completed navigation internal control systems of commercial banks in Vietnam by
perfecting the model factors in the model of 5 factors of the COSO organization.
Nguyen Anh Phong & Ha Ton Trung Hanh (2010) based on the principles of Basel 2
and pointed out that there are five groups of factors that affect the effectiveness of the
internal control systems in commercial banks including: (1) control environment and
supervision of the board of directors; (2) identify and assess risks; (3) control activities
and division of responsibility; (4) information and communication; (5) performance
monitoring and correction of errors. Nguyen Tuan & Duong Nguyen Hung (2015) in
their research suggested model factors affecting the performance and risks of
commercial banks in Vietnam including: control environment, risk assessment, control
activities, information and communication, monitoring.
1.3. Some comments on the study
1.3.1. For foreign studies
1.3.2. For national studies
1.4. Research gaps and orientation of the author
1.4.1. Identify research gap
With the overall presentation of the study at national and foreign with the
identification of gaps in research can be found that there is not a direct, full research
and system related to problems identified factors affecting the effectiveness of the
internal control systems towards ensuring operational efficiency of commercial banks
in Vietnam.
1.4.2. Research orientation of the author
In view of inheritance and continue to develop the prior studies, thesis will
continue the research on the effectiveness of the internal control systems in
commercial banks. But to enhance the effectiveness of internal control systems to
enhance the operational efficiency of the banks we will need to consider the factors
that affect and level of affect of these factors on the effectiveness of the internal
control systems in commercial banks Vietnam. So, thesis will focus on the

examination of the impact factors and the level of impact of these factors on the
effectiveness of the internal control systems in commercial banks.


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CONCLUSION OF CHAPTER 1
The main content of this chapter, the author has systematized previous national
and foreign studies on the factors affecting the internal control systems. On the basis
of the assessment a number of studies and identification of research gaps authors
hypothesize and main research questions as the basis for the presentation of the next
chapter of the thesis.
The analysis and evaluation of studies is presented in two items simultaneously
based on the selection of typical studies pulished. Through the comments are
presented in the final section of chapter can conclude that the study of factors affecting
the effectiveness of the internal control systems in Vietnam commercial banks in the
current conditions is still a new topical problem.

CHAPTER 2
THEORETICAL BASIS AND RESEARCH MODEL
2.1. Internal control systems and the effectiveness of internal control systems
2.1.1. Internal control system
2.1.2. The effectiveness of internal control systems
Effective internal control systems (considered at a specific time) if the board of
directors and managers gain reasonable assurance of these following 3 criterias:
- They understood the operational goals of the organization is achieving in what extent.
- Annual financial report is prepared and presented in a reliable way
- Laws and regulations are being followed.
2.1.3. Report of BASEL on internal control systems
Theoretical system of internal control banks in accordance with Basel reporting

consists of 02 sections: Section 1: Goals and roles of internal control principles in
banking ; section 2: Internal control principles in banking.
2.2. Related theoretical basis of the factors affecting the effectiveness of the
internal control systems:
The theoretical basis for the studies of internal control systems such as: regulatory
theory, agency theory, institutional theory, contingency theory of organizations, social
psychology of organization theory.


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2.3. Factors affecting the effectiveness of internal control systems:
Control environment; risk assessment; information communication; control
activities; monitoring; political institutions; group interests.
2.4. Proposed research model
Proposed research model

Figure 2.5: Study model of determinants affecting the effectiveness of ICS of the
commercial banks in Vietnam
The research hypothesis is defined as following:
Hypothesis H1: There is a positive impact of control environment to the effectiveness
of internal control systems in the commercial banks in Vietnam.
Hypothesis H2: There is a positive impact of the risk assessment to the effectiveness
of internal control systems in the commercial banks in Vietnam
Hypothesis H3: There is a positive impact of the information and communication to
the effectiveness of internal control systems in the commercial banks in Vietnam
Hypothesis H4: There is a positive impact of the controlling to the effectiveness of
internal control systems in the commercial banks in Vietnam
Hypothesis H5: There is a positive impact of the monitoring to the effectiveness of
internal control systems in the commercial banks in Vietnam

Hypothesis H6: There is a positive impact of the political institutions to the
effectiveness of internal control systemsin the commercial banks in Vietnam


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Hypothesis H7: There is a negative impact of groups interests on the effectiveness of
internal control systems in the commercial banks in Vietnam
CONCLUSION OF CHAPTER 2
The main content of this chapter helps the reader grasp the whole basis of the
theory of internal control, internal control systems in general and internal control
systems of commercial banks in particular; model of the internal control systems in
accordance with Basel commission. In this chapter also presents the theoretical basis
for the background factors affecting the effectiveness of internal control systems in
Vietnam commercial bank: regulatory theory, agency theory, institutional theory,
contingency theory of organizations, social psychology of organization theory. This is
the basis of the theoretical background for modeling the factors affecting the internal
control systems of commercial banks in Vietnam.
CHAPTER 3: RESEARCH METHOD
3.1. Research method and research process
3.1.1. Research method: Mixed methods including qualitative research and
quantitative research.
3.1.2. Research process
Step 1: Summarizing previous studies related to the effectiveness of internal
control systems
Step 2: Qualitative research by using in-depth interviews method with experts
Step 3: Checking the results of qualitative research
Step 4: Data collection and implementation of quantitative research
3.2. Data sources and methods of collecting and analyzing data in qualitative
research.

- Secondary data: from the final reports, magazines, thesis, scientific studies have
been published.
- Primary data: from analysis, synthesis, results obtained through in-depth
interviews with experts with experience in the field of auditing of 4 groups: leaders of
commercial banks; state management agency on bank; professional associations;
researchers in accounting, banking; magazines leaders.


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Processes and methods of qualitative data analysis
The author has used the pattern analysis method to determine the level of the
factors affecting the effectiveness of internal control systems. According to this method,
depending on the information of the data provided and the nature of the factors, the data
will be sorted to extract, classify and encryption on each level.

Figure 3.4: The process of qualitative data analysis
3.3. Data source and data collection methods in quantitative research.

- Data sources has used in quantitative research: the data are collected directly, via
letter or email from the survey has been cleaned.
- Processes and methods of quantitative data analysis:
Step 1: Design survey questionnaire
Step 2: Select survey samples and determine survey’s format
Step 3: Send questionnaire and get answer
Step 4: Handle the raw data
Step 5: Accredit size (Cronbach’s Alpha)
Step 6: Explore factors analysis (EFA)
Step 7: Recommend research model and method for multiple regression analysis
Step 8: Model regression assessment (MRA)

3.4. Generalized regression equation
Correlation analysis model has used in the general thesis takes the form:
Y = f (X1, X2, X3, …, Xi)


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Linear regression equation shows the impact of these factorss on the dependent
variable takes the form:
Y= β0+β1X1+β2X2+β3X3+..+ βiXi
CONCLUSION OF CHAPTER 3
The author has used qualitative and quantitative research methods to identify
and assessment the factors affecting the effectiveness of internal control systems in the
commercial banks in Vietnam. In qualitative methods, the author used methods of
analysis, synthesis, comparison, thinking, systematic approach, descriptive statistics to
describe, theoretical generalizations related to contents of thesis and analysis and
comments to decide on the factors affecting the effectiveness of internal control
systems in the commercial banks in Vietnam. In quantitative methods were used to test
the factors affecting the effectiveness of internal control systems in the commercial
banks in Vietnam.

For data processing and analysis, the author has used SPSS

software and analysis tools EFA, MRA for inspection and the determinants influencing
the results of the model.
CHAPTER 4: RESULTS OF RESEARCH AND INFERENCE
4.1. Research results on situation and an assessment of the effectiveness of the
internal control systems of the commercial banks in Vietnam
4.1.1. The reality of the operation of commercial banks in Viet Nam
In this part, the author has focused on analyzing the current situation of the

banking operations through statistical tables for the period from 2010 to 2015.
4.1.2. The reality of the internal control systems of commercial banks in Vietnam
- Internal control work (especially qualifications of staff working in internal
control) does not keep up the rapid development of the banking business.
- Shortage of human resources in the work of internal control systems in banking.
- Internal control systems and other monitoring institutions in a number of banks
show signs of "disabled".
- Internal control, contradictions and conflicts of interest


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4.2. The results of qualitative research to explore factors that affect the
effectiveness of internal control systems in the commercial banks in Vietnam.
4.2.1. Method and implementation process
4.2.2. Qualitative research results
By means of expert interviews, through proposals discussed with the experts by
the method of analysis of form King (2004) and process analysis of Cresswell (2003).
Qualitative research results are as follows:
 There are 7 factors that affect the effectiveness of internal control systems in the
commercial banks in Vietnam are shown in table 4.3.
- The author has discovered 2 new elements compared to the previous study:
Angella Amudo & Eno L. Inanga (2009) and Sultana & Haque, (2011) are shown in
table 4.3.
Table 4.3. Factors affecting the effectiveness of internal control systems of the
commercial banks in Vietnam
No.

Symbol

Names of factors

Nature of factor

1

MTKS

Control environment

inherit

2

DGRR

Risk assessment

inherit

3

HDKS

Cotrol activities

inherit

4

TTTT

Information and communication

inherit

5

GS

Monitoring

inherit

6

TCCT

Political institutions

The new findings

7

LIN

Group interests

The new findings

To ensure the objectivity of qualitative research results, result of statistical test
showed that all factors identified in the qualitative research have reached consensus
between 70% - 90%. This shows the considerable objectivity and reliability of
research results.
Therefore, after examining the qualitative, compared to model of the factors
affecting the effectiveness of the internal control systems in accordance with the
Basel's report, the studies of Angella Amudo & Eno L. Inanga (2009) and Sultana &


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Haque, (2011), there are 5 inherited factors including: control environment, risk
assessment, cotrol activities, information and communication, monitoring. However,
there are 2 new factors affecting the effectiveness of the internal control systems is
detected including: political institutions, group interests. This is consistent with the
characteristics of the market economy in accordance with socialist orientation of
Vietnam, the impact of the state in managing direct banking activities and interests of
the group of bank.
4.3. Quantitative research results and inference
4.3.1. Sample
4.3.2. Results of measurement of factors affecting the effectiveness of the internal
control system in the commercial banks in Vietnam.
- Through analysis of Cronbach's Alpha test, 8 scales of model to ensure good
quality for 30 specific variables.
- The result of explored factor analysis (EFA): Testing the suitability of EFA,
testing correlation of observed variables in representative measure, testing the level of
explanation for observed variables on factors, results in line with the parameters
defined in quantitative research.
- Multivariate regression analyze (MRA): The real factors directly effect the
effectiveness of the internal control systems is expressed through linear regression

equation:
The effectiveness of internal control systems = -0.684 + 0.088 (control
environment) + 0.377 (risk assessment) + 0.322 (control activities) + 0.154
(information and communication) + 0.120 (monitoring) + 0.145 (political
institutions) - 0.038 (Group interests).


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Results of hypothesis testing:
Figure 4.16. Results testing hypotheses about the factors affecting the
effectiveness of internal control systems of commercial banks in Viet Nam
No

Hypotheses

Results

.
1

H1: There is a positive impact of control environment to the Accepted
effectiveness of internal control systems in the commercial banks
in Vietnam.

2

H2: There is a positive impact of the risk assessment to the Accepted
effectiveness of internal control systems in the commercial banks
in Vietnam

3

H3: There was a positive impact of the information and Accepted
communication to the effectiveness of internal control systems in
the commercial banks in Vietnam

4

H4: There was a positive impact of the controlling to the Accepted
effectiveness of internal control systems in the commercial banks
in Vietnam

5

H5: There was a positive impact of the monitoring to the Accepted
effectiveness of internal control systems in the commercial banks
in Vietnam

6

H6: There was a positive impact of the political institutions to the Accepted
effectiveness of internal control systems in the commercial banks
in Vietnam

7

H7: There is a negative impact of groups interest on the Accepted
effectiveness of internal control systems in the commercial banks
in Vietnam

Research results show that through the inspection, can confirm that the factors

affecting the effectiveness of internal control systems in order of importance as
following:


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Table 4.17. The importance of the factors affecting the effectiveness of internal
control systems of the commercial banks in Vietnam
No.

Independent variable

Values Density (%)

Affect order

1

Control environment (X1)

0,090

7,2

6

2

Risk assessment (X2)

0,326

26,2

1

3

Cotrol activities (X3)

0,325

26,1

2

4

Information and communication (X4)

0,156

12,5

3

5

Monitoring (X5)

0,114

9,2

5

6

Political institutions (X6)

0,143

11,5

4

7

Interest of groups (X7)

0,090

7,2

6

Total

1,244

100%

CONCLUSION OF CHAPTER 4
With content in this chapter, the author clearly shows the status of the commercial
banks in Vietnam in general, the status of the effectiveness in the internal control
systems of commercial banks in Vietnam in particular. Despite many positive changes
after the restructuring period, Vietnam commercial banking system in general and the
effectiveness of the internal control systems in commercial banks in Vietnam in
particular, which still need to overcome limitations.
Through qualitative and quantitative research methods in Chapter 4, the author
has shown that the model and the scale used in the study was significant. Results of the
study clearly stated: there are 7 factors affecting the effectiveness of the internal
control systems in the commercial banks in Vietnam. Each factor has an impact on the
level of different effectiveness and are arranged in order from high to low as
following: risk assessment, control activities, information and communication,
political institutions, monitoring, control environment and group interests.
The results of this chapter is the basis for the author to make the orientation, views
and solutions to enhance the effectiveness of the internal control systems in Vietnam's
commercial banks, which are now in Chapter 5.


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CHAPTER 5
CONCLUSION AND POLICY IMPLICATIONS
5.1. Conclusion
The results of qualitative research has identified 7 factors that affect the
effectiveness of the internal control systems in Vietnam commercial banks as

following: control environment; risk assessment; control activities; information and
communication; monitoring; political instituations; group interests.
5.2. Orientation and perspective to enhance the effectiveness of internal control
systems in terms of integration
5.3. Oriented measures to enhance the effectiveness of the internal control
systems of the commercial banks in Vietnam
5.3.1. Oriented measures to enhance the effectiveness of the internal control systems
in the commercial banks in Vietnam
- Create control environment and focuse on business ethics
- Adjust the assessment process and response risk timely
- Improve the effectiveness of control activities
- Transparency of information and implementation of internal communication
channels with the external and effective
- Strengthen supervision and improve the efficiency of internal audit
- Control group interest in the bank
- Complete the political institutions to conform to the trend of regional integration
and the world
5.3.2. Conditions for the implementation of solutions
For the state management agencies, the bank of Viet Nam, banking association,
commercial banks in Vietnam, training facilities.
5.4. Limitations of the study and direction of next study
Besides the results obtained as above, this study is still limited, the problem exists
in the thesis will be continued to study in the future, includes:
Firstly, the review of the theories and various studies about the effectiveness of
internal control systems, particularly in the banking sector has not been summarized
methodically and throughout by scientists, the authors' research is mainly based on the
internal control systems in accordance with Basel organization. However, internal


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control theory is rich and diverse, and based on many different research goals. So, the
question for the researchers is to continue next research framework of internal control
in general and in particular the effectiveness of internal control systems in units.
Secondly, about scope of the study, the subjects of this study primarily is
Vietnam's commercial banks, which have not mentioned the foreign banks. Therefore,
the next studies need to expand the scope of research to many other subjects.
Thirdly, In this study, the author mainly has based on the factors of the internal
control systems by Basel organizational and has added 2 factors consistent with
conditions in Vietnam: Political institutions and group interests. This is where the next
research can perform and additional checks other factors, especially those belonging to
intrinsic factors in Vietnam's commercial banks.
GENERAL CONCLUSION
Enhancing the effectiveness of internal control systems contribute to improving
management efficiency and effectiveness of Vietnam's commercial banks themselves.
The study of the factors affecting the effectiveness of internal control systems and
level of influence of each factor, thereby proposing appropriate solutions to contribute
to enhancing the effectiveness of internal control systems in Vietnam commercial
banks is an urgent requirement and is the main objective of this study.
Based on the theoretical basis about internal control: regulatory theory, agency
theory, institutional theory, contingency theory of organizations, social psychology of
organization theory,... combined with the systematization of the studies related to the
subject, thesis has clarified the reasoning about internal control issues, the
effectiveness of internal control systems in the commercial banks, analyzed the
influencing factors and measurement criteria.
Thesis research using mixed of qualitative and quantitative methods, including the
findings of qualitative research is the basis for determining the pattern of determinants
affecting the effectiveness of internal control systems and measure the impact of these
factors to the effectiveness of internal control systems in the commercial banks in
Vietnam.

Results of the study are the basis for the authors proposes for the direction and
measures to enhance the effectiveness of internal control systems in Vietnam


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commercial banks in the context of restructuring and extensive international economic
integration.
The research results has achieved by the thesis has brought theoretical and
practical significants. Through the systematization of theory about internal control and
internal control systems has created an overall picture of the object of interest to study
issues related to the topic. Results of the study also open up new research avenues that
other writers can turn to. Practically, results of the study contribute to the construction
orientation policies, mechanisms for state management bodies about banking, auditing,
the bank's management, improve the efficiency of training education institutions,
universities. The study results also contributed to the transparency of information in
the field of finance and banking, improved management efficiency and operational
efficiency of banks and trust to attract domestic and foreign investment .
However, the study also has some limitations in scope, space and study time.
These restrictions are also implications for the directions of this followed research.
With the trend of economic development, economic integration roadmap and
world region, with the determination of the entire political system, the support of the
professional organizations, the general consensus of the entire health staff in the
system of commercial banks, we hope in the near future there will be a breakthrough,
and constantly growing both in quality and quantity in order to assert its position in the
process of international economic integration.


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LIST OF RESEARCH HAVE BEEN PUBLISHED BY AUTHOR RELATED
TO THE THESIS
* Science research topic
1. The theory of financial reporting in the public sector in accordance with accounting
standards and international public transportation orientation for Vietnam. Scientific
subjects and technology university level, (2014), University of economics Ho Chi
Minh city, Code: CS-2014-85 (Participants).
* Articles:
1. Applying the PDCA cycle in the implementation of internal control systems in
commmercial banks. An article published on Accounting Journal, No. 81, (2009),
page: 18-19.
2. International integration strategy in accounting of the countries in the world and
lessons for Vietnam. An article published on Auditing Journal, No. 4 (113), (2010),
page: 51-53.
3. Improving governance advisory role of internal audit in commercial banks in Vietnam.
An article published on Banking Science and traning review, No. 97, (2010), page: 2830.
4. Solutions to enhance international economic integration of Vietnam audit services in
the current context. An article published on Auditing Journal, No. 12 (121), (2010),
page: 42-47.
5. The benefits and drawbacks of these acquisitions and bank mergers. An article
published on Auditing Journal, No. 9 (130), (2011), page: 20-24.
6. Solutions for commercial banks Vietnam prior to the trend mergers and acquisitions.
An article published on Duy Tan University Journal of science and technology, No. 1,
(2011), page: 119-127.
7. Solutions to limit risks in internet banking transactions in commercial banks in
Vietnam. An article published on Banking Science and traning review, No. 114,
(2011), page: 93-99.


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8. Experience developing credit information systems of the countries in the world and
lessons for Vietnam. An article published on Banking review, No.10, (2012), page: 5760.
9. Development solutions for homebanking services at commercial banks Vietnam. An
article published on Duy Tan University Journal of science and technology, No. 2 (7),
(2013), page: 89-97.
10. Audit of public debt–Solutions contributed publicity and transparency of information
for public debt in Viet Nam. Workshop debt crisis in some European Union countries
and lessons for Vietnam. Duy Tan University & Institute of European Studies, (2014),
Page: 317-321.
11. Correlation and differences in accounting regulations of Viet Nam financial
instruments and international accounting standards IAS 32, IAS39 and international
financial reporting standards IFRS 7. Proceedings of the national scientific
conferences: Accounting and Auditing in the reform process and integration, the
Ministry of Finance and Economic University of Da Nang, (2014), page: 119-122.
(ISBN: 978-604-0-06501-8).
12. Some cases about accounting recognition of investment real estate, property goods
and finished products property in accordance with the accounting standard No. 05
(VAS05) and circular 200/2014/TT-BTC. An article published on Accounting and
Auditing Journal, No. 11 (146), (2015), page: 32-34.
13. The research of factors affecting the effectiveness of internal control systems in
comercial banks – Empirical evidence in Viet Nam, International Business Research,
Vol.9, No.7, 144-153. Doi: 10.5539/ibr.v9n7p144.