Nghiên cứu ảnh hưởng của những yếu tố kiểm soát nội bộ tới chất lượng giáo dục đại học của các trường đại học ngoài công lập ở việt nam tt tiếng anh

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CHAPTER 1:
INTRODUCTION

invested for implementation of scientific projects at the university-level (equivalent
to almost no scientific research). In addition, the publication of scientific research of
these universities in the national and international journals is still limited, especially,
some universities do not have any papers published on national journals. The research
results showed that as quality of new students is uneven and often lower than the average
level, the training of non-public universities still faces many difficulties. Meanwhile,
students assessed that there are inadequacies in the ratio between theory - practice and
training route of such training programs.

1.1. The urgency of the topic
1.1.1. Background
Higher education is one of the particular concerns of the Party, the government
and people. This is clearly reflected in Resolution No. 29-NQ/TW of the 11th Central
Committee on “Fundamental and comprehensive innovation in education, serving
industrialization and modernization in a socialist-oriented market economy during
international integration”. The Resolution clearly stated that the goal of Vietnamese
higher education is to focus on training highly qualified human resources, fostering
talents, developing qualities, improving the capacity of self-study and self-enriching of
knowledge, creation. By 2020, the objective is that Vietnamese higher education will
have a fundamental shift in quality, scale, and reach the regional and international
level. In order to achieve the above objective, in addition to the efforts of public
universities, the current non-public universities are also contributing to improving the
capacity of education, training and better meeting the learning needs of society.
However, the quality of non-public universities in Vietnam remains a

controversial issue. During the process of formation and development over 20 years,
the quality of higher education of non-public universities reveals signs of unsecurity.
In particular, while the scale and number of students increase rapidly, the conditions
to ensure the training quality of some universities are not commensurate with them.
Some universities are newly established but enrolling with a scale beyond the
capacity (the capacity of lecturers, facilities, classrooms, practical equipment, library)
which results in unsecured quality of some majors. In some universities, the number
of lecturers does not meet the training needs. Regarding the staff, most newly
established non-public institutions face difficulties in recruiting, training lecturers and
managing officers. The number of full-time lecturers in many non-public universities
is small, and they are mostly elders. A number of young lecturers just graduated are
often at low level, the management staff often lacks professionalism. In terms of
facilities, currently, 12 non-public universities have to rent training locations, some
universities have too many locations, the area of one location is small because
managers do not have a long-term vision to create an academic environment. The
library systems of some universities are still weak, the amount of learning materials
does not meet the demand of students. Regarding scientific research, there are
currently 51/65 non-public universities which have not conducted scientific research
at the state-level, notably more than 50% of universities have never funded or

From the signs of uncertainty about the quality of higher education at the above
non-public universities, it can be seen that this is a critical issue affecting the training
of high quality human resources for the country which may lead to a decline in
confidence of people regarding the national quality of education. This fact also shows
weakness in governance of universities. It can be clearly seen that the compliance with
principles and regimes in higher education of some non-public universities has not
been guaranteed and meanwhile, effectiveness of education and training has not met
the requirements of society nowadays. Improving the quality of higher education is one
of today's urgent requirements not only for public universities but also for non-public
universities. So what factors affect the quality of higher education in non-public

universities in Vietnam?
Studies have shown that the quality of higher education is not only affected by
many external factors such as politics, social, cultural, religious factors, economic
development trends (Dobre, Iuliana, 2015), but also influenced by internal factors of
universities. One of the reasons regarding the internal perspective is that internal
control is ineffective and loses its effectiveness in preventing and early detection to
reduce the impact of frauds or violations. Studies of Duh Rong-ruey, Chen Kuo-tay,
Lin Ruey-ching, Kuo Li-chun (2014); Popescu, M. Dascalu, A. Bulletin (2012);
Wang, Weixing (2010) showed that internal control has a close relationship with
effectiveness and quality of higher education of universities. Therefore, the internal
control of non-public universities in Vietnam does not have or lacks effective
monitoring and supervising activities which leads to violations of regulations of
higher education, and failures to achieve good quality of higher education. This is one
of the limitations that the internal control of these universities needs to overcome.
Therefore, investigating the relationship as well as measuring the impact of
internal control on the quality of higher education of non-public universities in
Vietnam to ensure and improve the quality of education is a critical requirement
nowadays. Derived from this urgency, the research topic of this Ph.D thesis is “The


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impact of internal control factors on the quality of higher education of non-public
universities in Vietnam”

(2005), Calomiris and Khan (1991). Research results showed that internal control
factors affect operational efficiency of organizations

1.1.2. Research overview
1.1.2.1. Studies on the impact of internal control on organizational operation
i). The impact of internal control on corporate governance
There have been many studies around the world demonstrating a positive
relationship between internal control and corporate governance such as studies of
Figen Canbay and colleagues (2018); Dumitrascu Mihaela et al (2012); Inaam AlZwyalif (2015); Laura F.Spira and Micheal Page (2002); Yuan Li, Yi Liu, Younggbin
Zhao (2006). The research results showed that there is a positive relationship between
index of corporate governance and internal control, and each element of internal
control has a positive relationship with corporate governance, at the same time,
internal control affects development of new product of enterprises and plays a vital
role in market orientation for output of enterprises.
ii). The impact of internal control on risk management
Based on a report of COSO in 1992, COSO conducted research on Enterprise
Risk Management (ERM). In this study, ERM consists of 8 components including:
internal environment, objective setting, event identification, risk assessment, risk
response, control activities, information and communication, monitoring. In 2004,
COSO officially issued ERM as the foundation for corporate risk management.
Inheriting the views of COSO on risk management, Dumitrascu Mihaela et al.
(2012); Rini Lestari (2015); Danescu et al. (2011) also conducted studies on the
impact of internal control on risk management. The results showed that
organizational governance and internal control have a significant influence on risk
management of organizations.
iii). The impact of internal control on operational efficiency
Research has shown that effective internal control helps organizations achieve
the goals of operational effectiveness and efficiency. This is also proved by many
studies such as research by Salehi and colleagues (2013), Wang, Jun (2015),
Srisawangwong et al. (2015), Qiang Cheng et al. (2015). These studies are conducted
in different countries, including Iran, China, Thailand, the United States.
Typical research on the impact of each element of internal control on
operational efficiency of organizations, and effectiveness of internal control includes

studies of Ramos (2004), Rae and Subramaniam (2006), Lannoye (1999), Armor,
Mark (2000), Lenghel, Radu Dorin (2015), Hevesi (2005), Steihoff (2001), Muhota

iv). The impact of internal control on service quality of an organization
Ofer Barkai (2013), Barry (2006) emphasized on their research that internal
control has an impact on the service quality of organizations. Research results
showed that internal control enhances service quality in these organizations.
Thus, research on the impact of internal control focuses on for-profit
organizations. Studies have clarified the relationship and influence of internal control
on corporate governance, risk management, operational efficiency as well as service
quality of organizations. However, these studies only examined the impact of internal
control on each factor and considered separate impact on efficiency, and did not
investigate the impact of internal control on service quality in non-public sector.
Therefore, internal control in non-public sector will be focused on this research.
1.1.2.2. The impact of internal control on operations of non-profit
organizations
i) The impact of internal control on organizational management
Research of Duncan et al. (1999), Bowrin (2004), Gallagher and Radcliffe
(2002) conducting on non-profit organizations proved that internal control has an
impact on organizational management. Although research proposals can also be
applied to other non-profit organizations, the internal control of universities was not
investigated.
ii) The impact of internal control on operational efficiency of non-profit
organizations
Studies of Petrovits et al (2011), Kamaruddin et al. (2018), Gallagher and
Radcliffe (2002), Lagos, Nigeria, Michael Olusegun Ojua (2016) conducting on nonprofit organizations demonstrated that internal control has an impact on the
operational efficiency of those organizations. O'Hare, P. (2002) also suggested that
non-profit organizations should be encouraged to establish effective internal control
to ensure accurate reporting.
iii) The impact of internal control on service quality of non-profit

organizations
Norazlina Ilias et al. (2016), Khalid (2010), Ilias et al. (2016) conducted
research on service quality of local authorities and provided that local authorities with
effective internal control has better service quality than those with less effective
internal control


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iv) The impact of internal control on the quality of higher education in
universities

the relationship between the implementation of internal control and operational
efficiency (teaching efficiency and research efficiency) of universities. Research
showed that in private universities, there is a positive and significant relationship
between the implementation of internal control and inter-teaching efficiency but a
negative relationship between the implementation of internal control and research
efficiency

When considering the necessity of designing, establishing and implementing
internal control in universities to help universities achieve the established objectives,
some studies have initially formed the foundation theory and proposed basic contents
to design an internal control system. Typical studies include the study of Wang,
Weixing (2010). In this research, it is emphasized that internal control has a close
relationship with operational efficiency of universities.
Popescu, M. Dascalu, A. Bulletin (2012), Dorcas Titilayo Adetula, Sheriff
Balogun, Paul Uwajeh, Folashade Owolabi (2016), Tsedal Lemi (2015) conducted
research in universities and showed a link between internal control and quality

management of universities in this country. In addition, the studies also pointed out
solutions to improve internal control systems in universities. One of these solutions is
based on the relationship between internal control and quality management, in which
it is recommended that a common framework should be developed to improve the
structure and tools of internal control of universities, at the same time, considering
integrating risk management and quality management system to achieve the highest
management efficiency.
In China, Dan Xia, Guo-Liang Du (2017) conducted a study on internal control
of colleges and universities and stated that internal control of colleges and
universities are methods, procedures and measures of preventing and control risks of
activities in internal management of colleges and universities. Internal control is to
ensure operation of scientific research, teaching and other related work, while
improving the efficiency of using resources, better promoting the healthy and
sustainable development of colleges and universities.
Regarding financial aspect of universities, Francis, Sambo; Imiete, Benneth
Umoghani (2018), Holter, Norma C; Seganish, W Michael (2014) provided that selfassessing of internal control to find inefficient operating processes aims at reducing
risks and finding ways to save costs.
Fr. Ninik Yudianti, Ilsa Haruti Suryandari (2015) evaluated the implementation
of internal control and risk management of non-public universities to find solutions to
ensure good governance of universities to improve quality management for private
universities. Research results showed that internal control positively affects the
implementation of university governance.
The research of Duh, Rong-ruey et al. (2014) emphasized that improving
operational efficiency is one of the objectives of internal control. The authors studied

Regarding the relationship between internal control and the quality of higher
education, some studies using qualitative research method proved that internal control
has an impact on the quality of higher education. Typical research is the study of
Suwito Eko Pramono et al. (2018). The authors emphasized that strengthening
internal control is one of the measures to improve the quality of higher education at

universities.
By assessing internal control regarding the impact on the quality of higher
education, the study of Habib Maryam Abdullahi et al. (2016) showed that the
internal control systems of universities in Nigeria exist but operate inefficiently. This
inefficiency leads to inadequate quality of lecturers, poor student performance and
weakness in the management of funds and capitals. Through data collection and
analyzing, the study ensured that an effective internal control system will be a tool to
improve the quality of higher education of universities in Nigeria.
1.1.2.3. Research on the impact of internal control on performance of
organizations in vietnam
In Vietnam, applied research of internal control in some specific fields is
concerned by many researchers. Typical research on completing and building internal
control systems include the study of Ngo Tri Tue et al. (2004), the research of Nguyen
Thi Phuong Hoa called “Characteristics of internal control systems in economic
corporations”, PhD thesis of Pham Binh Ngo (2011), Doctoral thesis of Nguyen Thi Lan
Anh (2014), PhD thesis of Bui Thi Minh Hai (2012); PhD thesis of author Dinh Hoai
Nam (2016)
In addition, there are also some articles on internal control systems of universities.
Typical research include studies of Dinh The Hung, Nguyen Thi Hong Thuy, Han Thi Lan
Thu (2013) implementing in public universities in Vietnam.
1.1.3. Research gap and research direction
Research in the world and Vietnam only investigated the impact of internal
control on organizations (for-profit and non-profit organizations) in terms of
organizational governance, risk management and operational efficiency, service


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quality of the organizations. Studies on internal control of universities showed that
internal control has an important role in higher education institutions, affecting each

activity (such as teaching, research activities) as well as improving the quality of
higher education of universities. However, there has not been any specific research
going deeper into investigating the impact of internal control on quality of higher
education in the context of non-public universities in Vietnam.
Thus, based on literature review of domestic and international studies and
identifying the research gap, it can be seen that there has been no research directly
investigating the impact of internal control on the quality of higher education of the
non-public universities in Vietnam.
1.2. Objectives and research questions
1.2.1. Research objectives
- General objective: Explaining the impact of elements of internal control on
the quality of higher education as well as assess the impact of these factors on the
quality of higher education of non-public universities in Vietnam. Whereby, solutions
are proposed to complete internal control in order to improve the quality of higher
education of non-public universities in Vietnam.
- Specific objectives:
(1) Identify components of the quality of education of non-public universities
based on perspectives of managers in the field of higher education;
(2) Identify components of internal control of non-public universities to
consider its impact on the quality of higher education;
(3) Establish a model to assess the impact of internal control on the quality of
higher education of non-public universities;
(4) Measure the impact of each element of internal control on the quality of
higher education of non-public universities in Vietnam.
(5) Propose solutions to complete internal control to improve the quality of
higher education of non-public universities in Vietnam
1.2.2. Research questions
Question 1: Assess the quality of higher education of non-public universities based
on perspectives of managers in the field of higher education?
Question 2: Investigate the impact of internal control on the quality of higher

education of non-public universities?
Question 3: How internal control affects the quality of higher education of
non-public universities in Vietnam?
Question 4: What are solutions to complete internal control to improve the

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quality of higher education of non-public universities in Vietnam?
1.3. Research subject and scope
1.3.1. Research subject
The paper focused on investigating the impact of internal control on the quality
of higher education of non-public universities in Vietnam.
1.3.2. Scope of the study
Scope regarding space: The study was conducted with a large number of
operating non-public universities in Vietnam.
Scope regarding time: During the process, some survey results used in this
study were conducted from 2014 to 2018.
1.4. Methodology
1.4.1. Research method
The thesis used mixed-methods research.
1.4.2. Research procedure and data collection
Step 1: Literature review
Step 2: Qualitative research
Step 3: Quantitative research
Step 4: Establish and test regression model
Step 5: Analyzing - disccussing the results - Reccommendations
1.4.3. Research data
In this research, the scope is limited within non-public universities. By 2018,
when conducting a mass survey, the thesis identified a sample of 26 non-public
universities in 3 regions across the country, including the Northern, Central and

Southern Vietnam.
1.5. Research structure
Apart from introduction and conclusion, the thesis consists of 5 chapters:
- Chapter 1: Introduction of research topic
- Chapter 2: Theoretical foundation of internal control and the quality of higher
education
- Chapter 3: Methodology
- Chapter 4: Research results
- Chapter 5: Conclusion and recommendations to complete internal control in
order to improve the quality of higher education of non-public universities in
Vietnam.


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CHAPTER 2:
THEORETICAL FOUNDATION OF INTERNAL CONTROL AND THE
QUALITY OF HIGHER EDUCATION

In this study, COSO 1992 is also selected as a basis for research and
development of internal control of non-public universities with the confirmed
advantages of COSO from previous research, specifically:
- According to Power (2007), COSO 1992 has been widely disseminated and
established foundation for directors and managers regarding internal control practices.
- According to IIA (2004), COSO 1992 is the framework approved by IIA and
is considered “The most effective internal control guide”.
- COSO 1992 provided a modern view of internal control including financial
and non-financial controls

2.1.4. Factors of internal control
According to published research, components of internal control are not
different in studies. COSO (1992), the Sarbanes Oxley Act, the American Institute of
Certified Public Accountants (AICPA) and General Accounting Office (GAO)
declared that effective internal control should have five elements, including control
environment, risk assessment, information and communication, control and
monitoring activities. These factors are also mentioned in later studies on internal
control as studied of Karen A. Maguire (2014), Yunna Wu, Yanwen Yin, Liqiang
Jiao (2013); Popescu, M. Dascalu, A. Bulletin (2012); Ofori W (2011), Millichamp,
A.H, (2002); Sultana R and Haque M. E. (2011); Angella Amudo, Eno L. Inanga,
(2009); Douglas NK (2011).
(i) Control environment
COSO (2013) showed that control environment is a set of standards, procedures
established as a basic for implementation of internal control of organizations. The
control environment is influenced by a variety of internal and external factors,
including history of organizations, market value, competition and the law.
(ii) Risk assessment
According to COSO (2013), risk is defined as the possibility that an event will
occur and adversely affect the achievement of certain objectives. Risk assessment
involves a dynamic and repetitive process to identify. The prerequisite condition for
risk assessment is the establishment of objectives and links at different levels of an
entity.
(iii) Control activities:
According to the Sarbanes Oxley Act (SOX, 2002), control activities are policies
and supporting procedures to ensure that management directives are successfully
implemented. Control activities provide means to address different risks that may hinder
the achievement of organizational goals.
(iv) Information and communication

2.1. Common issues of internal control of organizations

2.1.1. Nature of internal control
The concept of internal control has been developed in conjunction with the
theory and practice of accounting and auditing (Brown, 1962). In this context,
traditional internal control is considered means of securing credible recording
procedures as well as a way to prevent and detect fraudulent activities (Lee ed.,
1988). However, since internal control was first set up as a concept in accounting and
auditing documents, there has been a lot of debates about its definition and contents
(Heier, Dugan, and Sayers , 2005) and official definitions are controversial (Hay,
1993).
Starting from this perspective, a series of following studies also mentioned
internal control as a system, including the views of AICPA (1949), International
Federation of Accountants (IFAC, 2009), Alvin A. Arensv et al. (2000, page 196).
The viewpoints considering internal control as a system emphasize 3 effects
that need to be achieved when the internal control system is valid, that is to comply
with the law, ensure the reliability of information and safety of property.
Another viewpoint considers internal control as a controling process to
achieve the objectives of organizations, including many continuous and changing
jobs in accordance with the characteristics of the processes as well as the
development of organizations. This view focuses on activities of internal control.
Typical studies are research of Anthony (1949, page 20), Nguyen Quang Quynh
(2014, page 9), King (2011), Robert R.Moeller (2009, page 24), COSO (1992).
2.1.2. Classification of internal control
According to the UK Auditing Practices Committee (UK APC, 1979), based on
the field of operation of internal control, internal control is divided into accounting
controls and operational controls,
According to Spencer (2003) internal control are classified as: Administrative
control, informational control, managerial control, procedural control and physical
control. Also according to Spencer (2003), internal control can also be classified as
directive control, preventive control, detective control and corrective control.
2.1.3. Application of COSO internal control framework in organizations

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In a good organization, an information system is essential to guide the
operating processes of that organization. The information system creates reports,
contains financial-related information, allows the management and control of an
organization (COSO, 1992). This factor should include an accounting information
system to ensure that the accounting process is valid and reliable.

In contrast, other definitions mainly concern participating parties. These
definitions focus on the responsibility of higher education to the public or providing
learning experiences to benefit students and employers (Bogue, 1998; Harvey, 2005;
Haworth and Conrad, 1997; Quality Assurance Agency for Higher Education, 2012;
Srikanthan and Dalrymple, 2002, 2004, 2007). In this respect, the study of higher
education quality is based on approaches of different stakeholders such as: (1)
Approach based on perspective of suppliers (for example, donor organizations and
community); (2) Approach based on the perspectives of users of products (for
example current and potential students); (3) Approach based on the perspectives of
users of results (for instance employers); (4) Approach based on the perspectives of
people working in education (for example lecturers and managers) (Harvey and
Green, 1993; Srikanthan and Dalrymple, 2003, 2007, AUN-QA (2006).

(v) Monitoring
According to COSO (2013), “Monitoring is the final part of internal control,
the process of assessing quality of internal control over time. Monitoring has an
important role, helping internal control always operates effectively. The monitoring
process is carried out by responsible people to assess the establishment and

implementation of control procedures ”
2.1.5. The impact of internal control on organizational governance and risk
management
Internal control has been proved to have a positive effect on organizational
governance and risk management of entities (Figen Canbay et al., 2018, Inaam AlZwyalif, 2015, Rini Lestari, 2015). Internal control is designed and operated in
parallel with the organizational management system to help improve corporate
governance (including fairness, accountability and transparency) (Inaam Al-Zwyalif,
2015). On the other hand, internal control also affects organizational management
regarding of activities of developing new products of enterprises and plays a marketoriented role for output of enterprises (Laura F.Spira and Michael Page, 2002; Yuan
Li, Yi Liu, Younggbin Zhao 2006).
In addition, in terms of risk management, internal control is considered to be
able to reduce risks of organizations when it is designed and operated in accordance
with the characteristics of the organizations (Dumitrascu Mihaela et al. 2012).
2.2. Common issues of the quality of higher education
2.2.1. Nature of the quality of higher education
After reviewing documents, it is found that there are two directions to
determine the quality of higher education. The first direction is to build a broad
definition when considering the quality is to aim at an objective or a central result,
such as fulfilling a stated mission or vision (Bogue, 1998; Harvey and Green, 1993).
Some definitions are primarily based on standards, focusing on meeting a set of
standards, specifications, predetermined requirements or focusing on exceeding the
highest standards to pursue excellence or monopoly (Cheng and Tam, 1997; Garvin,
1987; Green, 1994; Harvey and Green, 1993; Harvey and Knight, 1996; Martin and
Stella, 2007; Peterson, 1999; Vlăsceanu et al., 2007).

According to the second direction, to determine the quality, it is necessary to
identify specific indicators reflecting the desired input (for example, lecturers, service
staff) and outputs (for instance, jobs of graduated students) (Barker, 2002; Cheng and
Tam, 1997; Lagrosen, Seyyed-Hashemi, and Leitner, 2004; Oldfield and Baron,
2000; Tam, 2010; Vlăsceanu et al., 2007). This has been proved in many publications

and quality assurance models so far.
2.2.2. Assessment of the quality of higher education
Based on the research results of Bogue (1998), Harvey (2005), Quality
Assurance Agency for Higher Education (2012), Srikanthan and Dalrymple (2002,
2004, 2007), AUN-QA (2015), The Ministry of Education and Training of Vietnam
(2007) generalized criteria of assessing the quality of higher education from the
perspectives of individuals who are working in the field of higher education
including: criteria for objectives and tasks, criteria for teachers and managers, criteria
for programs, textbooks, criteria for student composition, criteria for facilities and
training equipment, criteria for organization and management, criteria for teaching
and learning activities, criteria for scientific research, criteria for graduates.
2.2.3. Components of the quality of higher education
Based on an approach from the perspectives of educational activists (managers,
lecturers, university staff), Cheng (1996) argued that the quality of education is a
multidimensional concept, a set of inputs, training processes and outputs to provide
satisfactory education for employers by meeting their requirements and desires. According
to Srikanthan and Dalrymple (2003, 2007), the quality of higher education is understood
as consistency (or perfection), where behavior standards are met and core characteristics
are respected. AUN-QA (2006) stated the quality of higher education as “Good


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academic training based on good knowledge transfer and good learning environment
and good relationship between teaching and researching”. Thus, in this respect,
educational managers consider the quality of higher education as the goal of the
school in which the transfer of education to students becomes a key task for the
operation of these educational institutions.

and non-financial control. Secondly, accounting in universities has more
“complicated” characteristics than accounting in other organizations. Thirdly,
universities have capital and the use of the capital is quite diverse.

There have been many studies showing components of the quality of higher
education, typically the following studies:
The Ministry of Education and Training (2007) provides 10 criteria for assessing
the quality of higher education. Specifically, (1) Missions and objectives of universities,
(2) Organization and management, (3) Education programs, (4) Training activities, 5)
Staff including managerial officers, lecturers and staff, (6) Students (7) Scientific
research, application, development and technology transfer, (8) International cooperation
activities, (9) Library, learning equipment and other facilities, (10) Finance and financial
management.
The set of quality assurance standards of AUN-QA (2015) is being applied in
ASEAN countries, including a number of Vietnamese universities such as
universities belonging to Vietnam National University, Ho Chi Minh City and
Vietnam National University, Hanoi. The set of standards of AUN-QA (2015)
consists of 11 standards: (1) Expected learning outcomes, (2) Program description,
(3) Structure and contents of programs, (4) Methods of teaching and learning, (5)
Student assessment, (6) Quality of lecturers, (7) Quality of support staff, (8) Quality
of students and supporting activities, (9) Facilities and equipment, (10) Quality
improvement, (11) Outputs.
2.3. The impact of internal control on the quality of higher education of
universities
2.3.1. Objectives and characteristics of internal control of universities
The objectives of internal control of universities include the objectives of
safety, integrity and effective use of assets, the objective of the accuracy,
completeness and usefulness of information, the objective of effectiveness and
efficiency of educational activities, the objective of compliance with laws and

regulations.
Characteristics of internal control in universities: internal control has a wider
scope of control because on the one hand, universities pursue non-profit goals, on the
other hand, they need to ensure efficient use of financial resources and tangible
assets. In addition, for the purpose of the quality of education, internal control in nonpublic universities must simultaneously perform two functions of financial control

2.3.2. Theories explaining the relationship between internal control and the
quality of higher education
2.3.2.1.Agency theory
With specialized characteristic of non-public universities in Vietnam of
having capital contribution activities similar to joint stock companies, this is
clearly seen because managers (university administrators) often do not own many
stocks, but they represent shareholders to make decisions related to interests of
shareholders. Therefore, the managers themselves have to control internal
activities effectively to ensure stakeholders’ interests. When applying agency
theory to this research, it is expected that universities boards and heads of faculties
and departments who are authorized by shareholders will establish a complete
control system to effectively control internal activities of universities. By
promoting an effective control system, it will help universities enhance the quality
of higher education.
2.3.2.2. Contingency theory of Organizations
This theory is the basis for non-public universities to build and design internal
control system in accordance with the characteristics of such organizations. When
applying the contingency theory to this study, according to the explanation of this
theory, it is expected that when the internal control system is established and designed in
accordance with the operating characteristics of non-public universities, the quality of
higher education of such universities will be higher.
2.3.2.3. Social psychology of organizations
This theory is also called behavioral theory, which includes viewpoints in
governance that emphasize the role of human psychological, emotional, and social

factors in work. This theory explains the development of control activities and
monitoring mechanism in the internal control system. When applied to this study,
according to the explanation of this theory, it is expected that when the control and
monitoring activities are ensured, the quality of higher education of non-public
universities in Vietnam will increase.
2.3.2.4. Stakeholder theory
This theory is to provide measures to manage effectively and improve moral
values of an organization. Because non-public universities often have many different
stakeholders, conflicts exist regarding potential benefits, so when applied to this


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research, according to the explanation of this theory, it is assumed that When the
internal control is designed appropriately and scientifically, it will solve the above
conflicts. This theory also helps non-public universities determine appropriate rights
and obligations of parties, help universities identify limits, scope within the control of
universities, in order to reduce risks, and bad impacts on organizations, ensure
effective internal control.
2.3.3. The impact of internal control on the quality of higher education
Internal control has been proved to have influence on the achievement of
universities’ objectives (Wang, Weixing, 2010; Popescu, M. Dascalu, A. Bulletin,
2012). The design, establishment and operation of effective internal controls help
achieve the universities’ objectives. In addition, internal control is also considered to
have an influence on the administration of universities (Fr. Ninik Yudianti, Ilsa
Haruti Suryandari, 2015). The fact that private universities have sufficient
information and knowledge in implementing internal control and risk management
will improve the quality of management for private universities. Internal control is
also mentioned as an effective measure to manage finance of universities (Francis,
Sambo; Imiete, Benneth Umoghani, 2018; Holter, Norma C; Seganish, W Michael,

2014). In addition, internal control is also proved to have an influence on university
activities such as teaching activities, research activities. (Duh, Rong-ruey; Chen,
Kuo-hand; Lin, Ruey-ching ; Kuo, Li-chun 2014; Dan Xia, Guo-Liang Du (2017).
Finally, internal control is also proved to have an impact on the quality of higher
education. In some typical studies such as the studies of Suwito Eko Pramono;
Badingatus Solikhah, Diah Vitri Widayanti, Agung Yulianto (2018), Habib, Maryam
Abdullahi, Jalloh, Abdul Amid Aziz (2016), internal control is mentioned as a factor
that directly affects the quality of higher education
CHAPTER 3: METHODOLOGY
3.1. Research process
The research consists of 5 steps: literature review, data collection, data
processing, analyzing results, identifying and proposing solutions, recommendations.
3.2. Sources of research data
Primary data:
(i) Primary data was derived from analysis, synthesis of results collected from
the interview, discussion with experts
(ii) Besides, primary data was also collected from the results of processing
questionnaires collected from mass survey of non-public universities in vietnam.

16

Secondary data :
(i) Secondary data is collected from statistic data of higher education, thesis,
journals, published scientific research works, financial statements, summary reports,
audit reports of non-public universities in vietnam
(ii) Furthermore, secondary data is also collected from documents, policies,
regulations issued by universities to implement internal control system.
3.3. Qualitative research
- Theoritical foundation analyzed and synthesized from literature review
include: (1) Theoritical foundation of internal control; (2) Theoritical foundation of

the quality of higher education; (3) The relationship between internal control and the
quality of higher education.
- In-depth interview: an in-dept interview with 10 specialists of higher
education is conducted
- Discussion of the results of qualitative research: Identify variables to measure
internal control and the quality of higher education, in which the internal control
consists of 48 observed variables and the quality of higher education consists of 26
observed variables.
3.4. Quantitative research
3.4.1. Establish hypotheses and conceptual framework
3.4.1.1. Research hypotheses
Hypothesis H1: Control environment has a positive impact on the quality of
higher education of non-public universities in Vietnam
Hypothesis H2: Risk assessment has a positive impact on the quality of higher
education of non-public universities in Vietnam
Hypothesis H3: Control activities have a positive impact on the quality of
higher education of non-public universities in Vietnam
Hypothesis H4: Information and communication have a positive impact on the
quality of higher education of non-public universities in Vietnam
Hypothesis H5: Monitoring has a positive impact on the quality of higher
education of non-public universities in Vietnam
Hypothesis H6: The quality of higher education of non-public universities in
Vietnam will increase with the existence of internal control.
3.4.1.2. Conceptual framework


17

Control
environment

Risk assessment

18

(iii) Control activities (CA): According to COSO (2013), control activities are
measured by the following factors: Control activities are established on a selective
basis to minimize risk, and achieve objectives, Select and develop common control
measures through the application of information technology in control activities,
Develop control activities through procedural policies

H1 (+)

H2 (+)

H3 (+)
Control activities

The quality of higher education of nonpublic universities in Vietnam

H4 (+)
Information and
communication
H5 (+)

Monitoring

Figure 3.3: Conceptual framework of the impact of internal control
factors on the quality of higher education of non-public universities in Vietnam
Source: developed by the author

3.4.2. Measurement scales
3.4.2.1. Independent variables
(i) Internal control: According to Karagiorgos et al. (2011), five elements of
internal control are: control environment, risk assessment, information and
communication, control and monitoring activities which are used to assess internal
control
(i) Control environment (CE): According to COSO (2013), control
environment is measured by following factors: Commit to the integrity and moral
compliance of a university, Roles and rights of the University Board, Establish a
structure of rights and responsibilities, Employ competent staff and establish policies
to develop resources, Require individuals to report and take responsibilities.
(i) Risk assessment (RA): According to COSO (2013), risk assessment is
measured by the following factors: Identify appropriate objectives, Identify and
analyze risks, Evaluate fraud risk, Identify and analyze significant changes

(iv) Information and communication (IC): According to COSO (2013),
information and communications are measured by the following factors: Collect or create
timely, relevant information with high quality, Internal Communication, External
Communication.
(v) Monitoring (M): According to COSO (2013), monitoring is measured by
the following factors: Universities conduct frequent and periodic assessments, Assess
and inform defects.
3.4.2.2. Dependent variables
The dependent variable in the research model is “The quality of higher education”.
According to research of Quality Assurance Agency for Higher Education (2012),
Srikanthan and Dalrymple (2002, 2004, 2007), AUN-QA (2015), Ministry of Education
and Training of Vietnam (2007), the quality of education is measured by its constituent
elements, including: Students, Managerial officers, lecturers and staff, Organization and
management, Educational programs, Training activities, Scientific research, application,
development and transfer of technology, International cooperation activities, Libraries,

learning equipment and other facilities, Financial resources (including 26 criteria).
3.4.2.3. Evaluation of mesurement scales
Based on Cronbach's Alpha coefficients of scales, it is found that all
measurement scales are reliable with high Cronbach's Alpha coefficient, from α =
0.654 to α = 0,920, no observed variables being eliminated. Total number of variables
tested with Cronbach’s Alpha is 74 variables.
3.4.2.4. Research sample
The research sample has n = 388 which satisfied the sample size
3.5. Survey method
3.5.1. Design of the questionnaire
Questions on internal control include 48 questions in which: control environment
(13 questions), risk assessment (11 questions), control activities (13 questions),
Information and communication (5 questions), monitoring (6 questions). Regarding the
quality of higher education, there are 26 questions. (Appendix 5)
3.5.2. Subjects of the survey


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Targeted subjects of this study include experts from the Ministry of Education
and Training, experts from the Association of Vietnam Universities and Colleges, the
University Board, Head / Deputy Head of the departments, centers, Dean/ Vice Dean,
lecturers and staff of 26 non-public universities in Vietnam.

exists serious disunity, signs and manifestations of fighting over powers among
members of the University Board, as well as disputes over ownership of universities
among investors.

CHAPTER 4: RESEARCH RESULTS
4.1. The current status of the quality of higher education and internal
control of non-public universities in Vietnam
4.1.1. Overview of non-public universities in Vietnam
At the end of 1988, Thang Long Non-state University Center was established,
becoming the first non-public university in Vietnam. After that, a series of other nonpublic universities have been established and put into operation. According to the
statistics of the Ministry of Education and Training, by the end of 2017, the country
has 65 non-public universities, accounting for 28% of the total number of universities
nationwide. The number of students of non-public universities by 2017 is 243,975
students, accounting for 13.8% of the country's students. The number of lecturers in
these universities by the school year 2016-2017 is 15,158 people, accounting for 21%
of the total number of lecturers nationwide.
4.1.2. The current status of the quality of higher education of non-public
universities in Vietnam
Firstly, regarding the required conditions to ensure the quality of higher
education are gradually being taken seriously by non-public universities, with many
innovations and step by step improvement.
Secondly, regarding the management of higher education: currently 51/65 nonpublic universities are assessed and verified to satisfy conditions of quality assurance.
Thirdly, some non-public universities have focused on promoting scientific
research and technology transfer activities in order to enhance scientific and
technological potentials at higher education institutions.
Limitations:
Firstly, the lecturers and staff are still inadequate and weak in capacity.
Facilities are still in poor conditions. Some non-public universities own some land
but only have limited capital to invest in construction and purchase equipment in
moderation. Some non-public universities have not attached much importance to
researching and developing courses and programs for lecturers and students, not
attached to the training activities of universities. Management and administration of
universities ảe still weak and unprofessional. In some non-public universities, there

4.1.2. The current status of internal control of non-public universities in Vietnam
Firstly, internal control does not keep up with the changes of state and social
mechanisms which affect the operation of universities.
Secondly, there is a shortage of human resources in charge of internal control
work in non-public universities.
Thirdly, internal control does not achieve its effectiveness, creating many gaps,
affecting the quality of higher education of non-public universities.
Fourthly, internal control has to face with conflicts of benefits
4.2. Research result
4.2.1. Hypothesis testing
Based on SPSS, the correlation coefficients among factors of the model
showed that groups of factors of Control environmental, Risk assessment, Control
activities, Information and communication, Monitoring are highly correlated with the
dependent variables (The quality of higher education). At the same time, the
correlations among these factors are relatively high.
Checking the model fit:
The regression results with Adjusted R Square of 0.825, showed that the
research model has explained 82.5% of survey data collected by the author.
Goodness of fit
The results of checking model fit showed Sig. = 0.00 <0.01, it can be
confirmed that the linear regression model is consistent with the actual data.
Partial correlation coefficients
With the above results, factors directly affecting the quality of higher education
of non-public universities in Vietnam are expressed through linear regression
equation as follows:
The quality of higher education = 0,482 + 0,24 (CE) + 0,135 (RA)
+ 0,278 (CA) + 0,08 (IC) + 0,144 (M)
Besides, the research can use regression results with standardized coefficients
(Beta coefficient = 0)
The quality of higher education = 0,26 (CE) + 0,2 (RA)

+ 0,284 (CA) + 0,105 (IC) + 0,154 (M)


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Based on the above results, it can be seen that the quality of higher education
of non-public universities in Vietnam is greatly influenced by control environment
and control activities.

+ Control activities (X3) has β = 0.278 indicating that control activities has a
positive relationship with the quality of higher education. With the assumption that
other factors remain unchanged, when control activities increase by 1 unit, the quality
of higher education will increase by 0.278 units

Test results regarding significance of regression coefficients
According to the test results in Table 4.11, 4 independent variables Control
environment (X1), Risk assessment (X2), Control activities (X3) and Monitoring
(X5) all have sig <0.01. Thus, these 4 variables have a significant correlation with
the quality of higher education of non-public universities in Vietnam with
reliability of 99%. The variable Information and communication (X4) with sig
<0.05, has a significant correlation with the quality of higher education of nonpublic universities in Vietnam at a 95% confidence level.
Testing the hypothesis that there is no correlation among independent
variables
The model met the conditions of the residual having a distribution with mean =
6.95E-15, standard deviation Std.Dev =, 994.
4.2.2. The extent of impact of each internal control factor on the quality of
higher education of non-public universities in Vietnam
To measure the extent of impact of each internal control factor on the quality of

higher education, the multiple linear regression is conducted the second time.
4.2.3. Testing hypotheses that internal control factors have impact on the
quality of higher education of non-public universities in Vietnam
Based on the analysis of factors and model, all hypotheses are confirmed
4.2.4. Discussion of the research results regarding the impact of internal
control factors on the quality of higher education of non-public universities in
Vietnam
- Unstandardized coefficients:
+ Control environment (X1) has β = 0.24 indicating that control environment
has a positive relationship with the quality of higher education. With the assumption
that other factors remain unchanged, when control environment increase by 1 unit,
the quality of higher education will increase by 0.24 units.
+ Risk assessment (X2) has β = 0.135 indicating that risk assessment has a
positive relationship with the quality of higher education. With the assumption that
other factors remain unchanged, when risk assessment increase by 1 unit, the quality
of higher education will increase by 0.135 units.

+ Information and communication (X4) has β = 0.08 indicating that
information and communication has a positive relationship with the quality of higher
education. With the assumption that other factors remain unchanged, when control
environment increase by 1 unit, the quality of higher education will increase by 0.08
units.
+ Monitoring (X5) has β = 0.144 indicating that monitoring has a positive
relationship with the quality of higher education. With the assumption that other
factors remain unchanged, when control environment increase by 1 unit, the quality
of higher education will increase by 0.144 units.
- Standardized coefficient:
Based on the regression results, this study clearly pointed out factors of internal
control that affect the quality of higher education of non-public universities in
Vietnam. Specifically, the order of importance of internal control factors to the

quality of higher education descendingly is “Control activities”, “Control
environment”, “Risk assessment”, “Monitoring” and “Information and
communication”. The contribution of each independent variable in descending order
of importance is: “Control activities” contributing 28.32%, “Control environment”
contributing 25.92%, “Risk assessment” contributing 19.94%, “Monitoring”
contributing 15.35% and “Information and communication” contributing 10.47%.
In addition, the study showed the impact of each element of the internal control on
the quality of higher education of non-public universities in Vietnam, as follows:
The factors of control environment which affect the quality of higher education of
non-public universities in Vietnam in a descending order of importance to the quality of
control respectively are “CE2”, “CE1”, “CE4”, “CE3”, “CE5”
The factors of Risk assessment which affect the quality of higher education of
non-public universities in Vietnam in a descending order of importance to the quality of
control respectively are “RA7”, “RA8”, “RA6”, “RA9”
The factors of Control activities which affect the quality of higher education of
non-public universities in Vietnam in a descending order of importance to the quality of
control respectively are “CA10”, “CA12”, “CA11”.


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The factors of Monitoring which affect the quality of higher education of nonpublic universities in Vietnam in a descending order of importance to the quality of
control respectively are “M16”, “M17”.

universities can establish specific directions, tasks and actions to tackle defects of
internal control to improve the quality of education at their units.

CHAPTER 5:

CONCLUSION AND RECOMMENDATIONS TO COMPLETE INTERNAL
CONTROL IN ORDER TO IMPROVE THE QUALITY OF HIGHER
EDUCATION OF NON-PUBLIC UNIVERSITIES IN VIETNAM.
5.1. Research results and contributions of the study
5.1.1. Research results
Based on the results of qualitative research, the thesis has identified 17
elements of 5 components of internal control that affect the quality of higher
education of non-public universities in Vietnam. These 17 factors were measured by
48 observed variables, of which 44 were extracted from the report of COSO 2013 and
4 new variables were discovered through interviews with experts.
The extent of impact of each element of internal control to the quality of higher
education of non-public universities in Vietnam was also explored through regression
analysis of the model.
5.1.2. Contributions of the study
Scientific contributions
Research results of the thesis have contributed to building the relationship
between the factors of internal control and the quality of higher education of nonpublic universities in Vietnam. Whereby, further research can continue to add to the
system of measurement scales used for the next research on the impact of internal
control on the quality of higher education of non-public universities in particular and
universities in Vietnam in general at different stages and socio-economic conditions.
In addition, the research results also identified the model to measure the impact of
internal control on the quality of higher education of non-public universities, the
relationships and the importance of those factors in the model.
Practical contributions
The research results have provided a general overview of the impact of internal
control on the quality of higher education of non-public universities in Vietnam in the
current period. The thesis has clearly pointed out the extent of impact of each element
of internal control on the quality of higher education, thereby helping the university
boards and administrators as well as managers of non-public universities to identify
and evaluate weaknesses of internal control. On this basis, managers of non-public

5.2. Recommendations to improve the efficiency of internal control factors
to improve the quality of higher education of non-public universities in Vietnam
5.2.1. Improve efficiency of control activities
(1) Complete control procedures
(2) Enhance efficiency of control activities
(3) Select and develop common control measures through the application of
information technology in control activities
5.2.2. Improve efficiency of control environment
(1) Creating a control environment with an emphasis on ethics in education
(2) Enhance the role, powers and responsibilities of the University Board
(3) Improve the capacity of the lecturers
(4) Complete the organizational structure of non-public universities
5.2.3. Improve efficiency of risk assessment
Non-public universities need to set up policies and assign responsibilities to
management levels on risk assessment of the above contents, based on that, prepare
options to be ready to cope with possible risks that may arise.
5.2.4. Improve efficiency of monitoring
The universities need to promote the functions and supervisory roles of
department/center of Testing and Quality Assurance, University Inspectors. As an
independent department, department/center of Testing and Quality Assurance,
University Inspectors has a function of advising and assisting the Board of Directors,
the University Board to carry out the inspection, testing and quality assurance of
education, operating the quality management system according to current standards
of higher education. In order to electively implement this function, department/center
of Testing and Quality Assurance, Inspectors should follow the process of monitoring
training activities, make inspection reports, propose measures contributing to
improving the quality of training activities.
5.2.5. Improve efficiency of Information and communication
(1) Continue to improve the process of collecting, creating, processing,

analyzing and evaluating information
(2) Strengthening internal communication


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(3) Strengthening external communication
5.4. Limitations of this study and directions for further research
Although this research has achieved some results as mentioned above, there exist
certain limitations and gaps that need to be studied in the future, specifically:
Firstly, the theory of internal control in the world is diverse and can be applied
to many different types of organizations, such as the internal control theory of COSO,
BASEL, COCO, COBIT. However, this study mainly applied theory of internal
control of COSO to conduct research. Therefore, the problem for the next research is
to continue to improve the research framework on internal control for organizations
in Vietnam in general and the internal control framework for the system of
universities in Vietnam in particular.
Secondly, regarding the scope of research, the object of the thesis is non-public
universities, so it did not investigate public institutions of higher education in
Vietnam. Therefore, subsequent studies can expand the scope of the study to examine
the impact of internal control on the quality of higher education of public universities
in particular and universities in Vietnam in general.

LIST OF THE PUBLICATIONS OF THE AUTHOR
RELATED TO THE TOPIC OF THE THESIS

1. Nguyen Hoang Phuong Thanh (2018), “The impact of control

environment on the quality of higher education of non-public
universities in Vietnam”, Journal of Accounting & Auditing, No.
5/2018 (176), pp. 41-46.
2. Nguyen Hoang Phuong Thanh (2017), “Internal control according to

COSO 2013 and its relationship with operational efficiency of
enterprises”, Journal of Accounting & Auditing, No. 5/2017 (164), pp.
51-53, 58.
3. Nguyen Hoang Phuong Thanh (2016), “Establishing the internal

control system for non-public universities in Vietnam”, National
CONCLUSION
The study used a combination of qualitative and quantitative research methods. The
results of qualitative research pointed out the elements of each component of internal
control which have impact on the quality of higher education. The results of quantitative
research indicated the extent of impact as well as the order of importance of each element
of internal control to the quality of higher education.
From the above results, the author proposes solutions to improve the internal control
factors for universities to improve the quality of higher education in accordance with the
current context of Vietnam.
The thesis has both theoretical and practical contributions. Theoretically, the author
has systematized viewpoints and theories on internal control and the quality of higher
education. Practically, the research results contribute to the orientation of building
regulations, policies and mechanisms for the state management agencies in education,
professional associations as well as university managers in the field of internal control of
non-public universities.
However, this study has certain limitations in terms of scope, space and time.
This is also a suggestion for further research on the impact of internal control on the
quality
of

higher
education
of
universities.

science conference proceeding, Innovating and improving training
quality of Accounting, Auditing in compliance with integration
requirements, Finance publishing house, November, 2016, pp. 239248.
4. Nguyen Hoang Phuong Thanh (2016), “International Finanical

Reporting Standards (IFRS): benefits of application – implications for
Vietnam”, Conference proceeding, IFRS – Opportunities and
challenges when applying in Vietnam, Finance publishing house,
December, 2016, pp. 100 -102.