Đánh giá tác động của cấu trúc kiểm soát nội bộ đến sự hữu hiệu của kiểm soát nội bộ trong các đơn vị sự nghiệp công lập tại việt nam tt tieng anh

THE MINISTRY OF EDUCATION AND TRAINING
UNIVESITY OF ECONOMICS HO CHI MINH CITY

NGUYEN THI HOANG LAN

EVALUATING THE AFFECTING OF INTERNAL CONTROL
STRUCTURE TO THE EFFECTIVENESS OF INTERNAL
CONTROL IN PUBLIC NON – BUSINESS AGENCIES
IN VIETNAM

Major: Accountancy
Code: 9340301
SUMMARY OF PhD THESIS
SUPERVISOR:
Assoc. Prof. PhD. MAI THI HOANG MINH
PhD. PHAM NGOC TOAN

HO CHI MINH CITY – 2019


The thesis was completed at:
University of Economics Ho Chi Minh City
Supervisor:
Assoc. Prof. PhD. Mai Thi Hoang Minh
PhD. Pham Ngoc Toan
Critic 1:

Critic 2:

Critic 3:

The thesis will be presented to The University Dissertation Board
at:
At ………. day …….. month …… year……….
The thesis can be found in library:


1
INTRODUCTION
1. Reason for research
Internal control effectiveness has a positive affecting to the
quality and effective operating results of government entities in public
sector. Studies show that the effectiveness of internal control raise the
quality of financial statement (Indriasih & Koeswayo, 2014),
fulfilling accountability obligations (Aramide.S.F & Bashir.M.M,
2015), lower fraud in public sector (Gbegi & Adebisi, 2015). In
Vietnam, studies focused on implement and operating internal
control effective for the public non – business agencies (Dinh The
Hung et al, 2013; Le Thi Cam Hong, 2014; Nguyen Duc Tho, 2013).
In the world, there were studies about internal control structure,
the effectiveness of internal control, affecting of internal control
structure to the effectiveness of internal control in public sector.
There were no study about contingency characteristic on political
regime in researching the relationship between internal control
structure and the effectiveness of internal control. Therefore, it is
necessary to study the topic “Evaluating the affecting of internal
control structure to the effectiveness of internal control in public
non – business agencies in Vietnam”.
2. Thesis Objectives and Questions
The overall objective of this thesis was to evaluate the affecting
of internal control structure to the effectiveness of internal control

in public non – business agencies in Vietnam and getting
moderator by contingency characteristics on political regime.
Questions:
(1) Did internal control structure affect to the effectiveness of
internal control in public non – business agencies in Vietnam and
the affecting was positive or negative?
(2) Which factor was moderator affecting to the relationship
between internal control structure and the effectiveness of internal
control? And the affecting was positive or negative?
3. Subject and Scope


2
The subject of study: the relationship between internal control
structure and the effectiveness of internal control in public non –
business agencies in Vietnam.
The subject of survey and the scope of study: public non –
business agencies in Vietnam.
The period of time for data collection: from 01/05/2018 to
30/09/2018.
4. Research Methodology
This thesis used mixed research methods including qualitative
method and quantitative method.
Qualitative method: finding out moderator variable base on
contingency characteristics on political regime, socialist - oriented
market economy development in Vietnam.
Quantitative method: Evaluating the affecting of internal
control structure to the effectiveness of internal control in public
non – business agencies in Vietnam.
5. New contributions

In terms of theory: providing an empirical evidence on the
affecting of internal control structure to the effectiveness of
internal control and getting moderator variables in research as the
new contribution.
In terms of practice: building internal control effectiveness is
many importance in providing reasonable assurance to management
about the achievement of an entity’s objectives, so this study aimed to
evaluating the affecting of internal control structure to the
effectiveness of internal control in public non – business agencies in
Vietnam.
6. Thesis Contribution
Thesis contribution: (1) Literature review, (2) Theoretical basis,
(3) Research methods, (4) Research results and discussion, (5)
Conclusion and implications for polity.

CHAPTER 1. LITERATURE REVIEW


3
1.1. Introduction
Public non – business agencies in Vietnam is in public sector,
(“the term “public sector” refers to national governments, regional
governments, local governments and related governmental entities”
(IFAC)).. This thesis reviewed studies in the world with scopes in
governmental agencies in public sector. Review data: Proquest,
Google Scholar, Library of Center for Statistics and Science and
Technology Information, Library of University of Economics Ho Chi
Minh City.
1.2. Literature review on the world of internal control structrure,
the effectiveness of internal control at governmental agencies in

public sector
1.2.1. Researches on the internal control structrure at governmental
entities in public sector
Internal control structure is a definition, were showed in many
studies on internal control in public sector. Some studies showed
that Internal control structure and Internal control system were
replaced each other (Eisenberg , 1997; O’Leary et al, 2006; Johari
et al, 2016). Other studies in quantitative research showed that
Internal control structure includes five factors and is measured
with five indicators (control environment, risk assessment, control
activities, information and communication, and mornitoring)
((Jokipii, 2006; Bilgen et al, 2018). INTOSAI issued INTOSAI GOV
9110 - Guidance for Reporting on the Effectiveness of Internal
Controls: SAI Experiences: in Implementing and Evaluating
Internal Controls, and building effective internal control structures
as one of main problems. The measurement of internal control
structures was based on the control self-assessment method (CSA
method) (Adamec et al, 2002). The CSA questionnaire method
respondents were asked to give their opinions about funtionality
of the internal control in their agencies, on scale from1 to 4 (1 –
strongly agree to 4 – strongly disagree). In conclusion, internal
control structure in this thesis is five factors and is measured with
five indicators (control environment, risk assessment, control
activities, information and communication, and mornitoring)


4
1.2.2. Researches on affecting of the internal control, the effectiveness
of intrenal control to the governmental entities in public sector
Internal control was helpful to risk management effective,

practice administration, finacial statement, financial and non finacial
results of entities ((Sarens et al, 2010; Duh et al, 2011; Suyono &
Hariyanto, 2012; Vijayakumar and Nagaraja, 2012; Indriasih &
Koeswayo, 2014; Habib & Jalloh, 2016). The effectiveness of
internal control affects positively on internal audit effective in
local government and providing an reasonable assurance to
achievement of an entity’s obkectives ((Badara & Saidin, 2013;
Dórman et al, 2013). Other researches showed that the lack of
internal control in capital projects leaded to lower reliable
decision of capital oganization and government, and affecting to
level debt of local government (Gras et al, 2014; Babatunde &
Dandago, 2014). On complying with laws and regulations, fulfilling
accountability obligations were showed in many researches by
Aziz et al (2015), Manurung et al (2015), Aramide & Bashir
(2015), Gbegi & Adebisi (2015), Ionescu (2016), Sari et al (2017),
Jorge (2017).
1.2.3. Researches on factors impact of the effectiveness of intrenal
control
There was studies about factors affecting to the effectiveness of
internal control in public sector. Jokipii (2006) researched
structure and effectiveness of internal control, findings that
internal control structure affected strongly and positively to the
effectiveness of internal control. Amudo & Inanga (2009) research
evaluating internal control system: case Uganda, the results
showed the lack of components in internal control system leading
to weakness internal control effectiveness. Nakiyaga & Dinh
(2017) researched how organizational culture affects internal
control effectiveness: the role played by top management, the
results showed that center manager decided objectives and
implement, training employee, affecting to Cultural organization

and internal control in entity, the effectiveness of internal control.


5
1.3. Literature review in Vietnam of internal control at
governmental entities in public sector
In Vietnam, internal control in governmental agencies in public
sector were researched. There were some studies with subject about
improving internal control (Nguyễn Bính Ngọ, 2011; Đinh Thế
Hùng, 2013, Nguyễn Đức Thọ, 2015) and complying with
regulations in internal control (Thịnh Văn Vinh, 2016; Lê Đoàn Minh
Đức et al, 2016) in public sector. From review, researching the
relationship between internal control structure and the
effectiveness of internal control, through moderatoring, is not
done in Vietnam.
1.4. Research gap
From overview researches in Vietnam and in the world shows
that the relationship between internal control structure and the
effectiveness of internal control was studied, but the research
didn’t analysis in moderator model. The author selects the topic
evaluating affecting of internal control structure to the
effectiveness of internal control in public non-business agencies in
Vietnam with moderator model.

CHAPTER 2. THEORETICAL BASIS
2.1. Introduction
This chapter introduces theoretical basis about internal control,
internal control structure, the effectiveness of internal control and
public non-business agencies, political regime, contingency
characteristics of public non-business agencies in Vietnam, theory

background for research model.
2.2. Overiew of Internal control
2.2.1. Internal control
2.2.1.1. Definition of internal control
Definition of internal control in this study follows in INTOSAI
GOV 9100.


6
2.2.1.2. INTOSAI GOV 9100: Guidelines for Internal Control
Standards for the Public Sector
“Internal control is an integral process that is effected by an
entity’s management and personnel and is designed to address risks
and to provide reasonable assurance that in pursuit of the entity’s
mission, the following general objectives are being achieved:
Executing orderly, ethical, economical, efficient and effective
operation; Fulfill accountability obligations; Complying with
applicable laws ang regulations; Safeguarding resources against lost,
misuse ang damage.” (INTOSAI GOV 9100, 2004). An effective
internal control reduces the probability of not achieving the objectives.
2.2.2. Internal control stucture and components of internal control
according to INTOSAI
Definition of internal control structure was used in many research
(INTOSAI GOV 9110, 2004; Jokipii, 2006; Bodnar & Hoopwod,
2010; Arens et al, 2012; Rosman et al, 2016). Internal control
structure involves five components: control environment, risk
assessment, control activities, information and communication,
and mornitoring. Measurement of Internal control structure is
internal reflection model with control self – assessment method
(CSA method) by Adamec, Rexroad, Leinicke, Ostrosky (2002).

2.2.3. The the effectiveness of intrenal control in public sector
INTOSAI GOV 9100 (2004), effectivesess of internal control
refers to “ the extent to which objectives are achieved and the
relationship between the intended impact and the actual impact of an
activity, and extent to which the stated objectives have been attained
in a cost – effective way”. In public sector, the general objectives are
being achieved: Executing orderly, ethical, economical, efficient and
effective operation; Fulfill accountability obligations; Complying with
applicable laws and regulations; Safeguarding resources against lost,
misuse ang damage”.
2.3. Overview of public non – business agencies
2.3.1. Definition of public non – business agencies and type
Definition of Public non – business agencies in this research
follow by Law in public employees 2010.


7
2.3.2. Operating environment of public non – business agencies in
Vietnam
2.3.2.1. Socialist – oriented market economy of Vietnam
Socialist – oriented market economy of Vietnam was definited in
Document of the 12th National Party Congress of The communist
party of Vietnam.
2.3.2.2. Operating environment of public non-business agencies
Public non-business agencies had to comply with laws and
regulations, about entity’s objectives, organization structure, financial
autonomy.
2.3.2.3. Financial automony of public non-business agencies
Financial automony of public non-business agencies is a part of
agency’s proactivity. In present, financial automony get four level: (1)

operating costs and investment costs by entities budget; (2) operating
costs by entities budget; (3) operating costs by entities budget and
state budget; (4) costs by state budget.
2.3.3. Annual result of party organization and social – political
organization in public non-business agencies
Party Committees leaders social – political organization in public
non-business agencies. Annual result of party organization involves
results of social – political organization. The list of social – political
organization in public non-business agencies are following
oganization: Ho Chi Minh communist Youth Union, Confederation of
Labour, Vietnam Veterans’s Union. In present, annual results of party
organization and social – political organization in public non-business
agencies by party organization results get four level: (1) clean and
strong party organization, (2) Well finishing obligation party
organization, (3) finishing obligation party organization, (4) weakness
party organization.
2.4. Theoretical Background
2.4.1. Agency thoery
Public non-business agencies execute with complying laws and
regulations. So that operating environment and political regime impact
to the performance of agencies.
2.4.2. Contingency theory of Organizations


8
The level of internal control affects to the effectiveness of
internal control.
2.4.3. Institutional Theory
Objectives of public non-business agencies depent on tasks of
government and internal control structure in agencies have to deal

with that. In public non-business agencies, party organization and
social – political organization operate in.
2.4.4. Competence –Based View
Public non-business agencies operate with financial rules and
source from government.
2.5. Proposing the research model and the research hypothesis
Based on review and theoretical background, the research
model proposed the following:

Moderator: contingency
characteristics

Internal control
Structure

The
effectiveness of internal control

Figure 2.2. proposing the research model
There are three kinds of variable in proposing the research
model
(1) Independent variable: internal control structure
(2) Dependent variable: effectivesess of internal control
(3) Moderator variable: contingency characteristics
Proposing research hypothesis:


9
Hypothesis 1: internal control structure affecs to the effectivesess
of internal control in public non – business agencies in Vietnam.

Hypothesis 2: Contingency characteristics impact to the
relationship between internal control structure and the effectivesess of
internal control in public non – business agencies in Vietnam.

CHAPTER 3. RESEARCH METHODS
3.1. Introduction
This thesis used mixed research methods including qualitative
methods and quantitative methods. Quantitative methods was main
research and the findings according to quantitative methods.
Qualitative methods was combined in quantitative research.
3.2. Research process
Research process involved in steps: literature review and theory
basis, building proposing research model and proposing hypothesesis
research, measurement concepts in proposing research model,
preliminary research, qualitative research for finding out moderator
and formal quantitative research for testing hypothesis.
3.3. Qualitative method
3.3.1. Qualitative research problem and ethical considerations
Qualitative research in this thesis used research process of
Creswell (2002).
3.3.2. Data collection and processing
Interview sample of 18 experts .
3.3.3. Data analysis processing and discussion
Using the processing and data collection of Creswell (2002) with
six steps.
3.3.4. Verify data
3.3.5. Findings
Results of qualitative in this study are findings out the
moderator for research model.
3.4. Quantitative research

10
3.4.1. Analysis for ensuring the reliability of measurement scale
Preliminary quantitative methods: through Cronbach’s alpha
coefficient assess reliability of measurement scale of five components
in internal control structure and four objectives in the effectiveness of
internal control.
3.4.2. Exploratory factor analysis
Preliminary quantitative methods: through exploratory factor
analysis assess the value of measurement scale of components in
internal control structure and objectives in the effectiveness of internal
control.
3.4.3. Testing of the hypotheses by using SEM, SEM multi groups
Formal quantitative research: using confirmatory factor analysis –
CFA, structural equation model – SEM, SEM multigroups.
To validate the measurement model of SEM, SEM multigroups
with:
Chi-square test (X2) < 3,00
Root Mean Square Error of Approximation (RMSEA) < 0,08
Comparative fit index (CFI) >0.90
Tucker – Lewis index (TLI) > 0,90
Standardized RMR (SRMR) < 0,08
3.5. Research sample and data analysis
3.5.1. Research sample
Qualitative methods: 18 experts
Preliminary quantitative methods: 130 agencies
Formal quantitative methods: 380 agencies
3.5.2. Data analysis
SPSS: Cronbach’s Alpha: Analyze - Scale –Reliability Analysis

EFA: Analyze – Data reduction – Factor
AMOS:CFA- Pattern matrix model builder
SEM - Standardized estimates, Maximum likelihood
SEM - Multiple groups
3.6. Measurement variables in the model
3.6.1. Measurement internal control structure


11
Measurement internal control structure: the control self –
assessment method CSA (Adamec, Rexroad, Leinicke and Ostrosky,
2002).
Measurement scale: likert from 1 to 7 (1 – strongly disagree, 7strongly agree).
Internal control structure is a reflective measurement
charactistic, measurement by five components.
Internal control structure
Control environment
CONENV 1: the governing body/board genuinely called
management’s decisions into question and evinced realiable
alternatives; CONENV 2: managers and management have not
been overworked; CONENV 3: there has been a great deal of
variation in control and management tasks. CONENV 4: the
personnel has understood the content and responsibilities;
CONENV 5: the conduct of personnel has demonstrated
commitment to honesty and the ethical values of the company.
Risk assessment
RISASS 1: the goals for the entity’s operations had credible and in
my opinion reasonable measures; RISASS 2: management actively
evaluated both internal and external risks preventing the
achievement of goals; RISASS 3: a risk analysis covering the intire

entity was carried out during the last year; RISASS 4:those in
managerial functions were aware of the risks of their areas of
responsibility and knew how risk management was implemented;
RISASS 5: in my opinion, the agency’s risks analysis and means of
protection could have been more efficient.
Control activities
CONACT 1: there were functioning controls in the agency’s
processes which gave warning whenever something exceptional
occurred; CONACT 2: as soon as something exceptional and
undesired was noticed it was promptly and appropriately dealt
with; CONACT 3: in the definition of task special attention was
paid to authorisation and the special demands of tasks; CONACT


12
4: in my opinion the internal control measures should have been
stepped up still further; CONACT 5: the intire personnel had
updated jop descriptions.
Information and communication
INFCOM 1: the personnel had no problems in obtaining
information pertaining to their own work tasks; INFCOM 2: the
reports forwarded to management were sufficiently clear and
contained information relevant from the management
perspective; INFCOM 3: sufficient information moved between the
different divisions of the agency so that the smooth uninterrupted
running of operation could be ensured; INFCOM 4: our agency’s
information and communications system was not quite up to date
with respect to function; INFCOM 5: the work was effficiently
coordinated within the function and also with other functions.
Monitoring

MOR 1:the operative information used in management was
specified to the systems information of financial management;
MOR 2: line managers take excellent care of day – to – day control;
MOR 3:there is active control of how the pesonnel obey the
operating instructions issued; MOR 4: we conducted annalysis
based changes during the last year; MOR 5:management has not in
the last year requested accounts of the accomplishment of control
measures.
3.6.2. Measurement the effectiveness of internal control
Measurement the effectiveness of internal control: using the
definition in INTOSAI GOV 9100.
Measurement scale: likert from 1 to 7 (1 – strongly disagree, 7strongly agree).
The effectiveness of internal control
Executing orderly, ethical, EFFEXE 1: Executing orderly, ethical;
economical, efficient and EFFEXE 2: Executing economical;
effective
operation; EFFEXE 3: Executing efficient and
(EFFEXE)
effective operation.
Fulfill
accountability ACCOBL 1: Fulfill accountability


13
obligations; (ACCOBL)

Complying with applicable
laws
and
regulations;

(COMLAW)

Safeguarding
resources
against lost, misuse and
damage. (SAFRES)

obligations on public funds; ACCOBL
2: Fulfill accountability obligations on
fairness;
ACCOBL
3:
Fulfill
accountability obligations on all
aspects of performance
COMLAW 1: Complying with
applicable laws and regulations in
budget; COMLAW 2: Complying with
applicable laws and regulations on
proper administration; COMLAW 3:
Complying with applicable laws and
regulations
on
environmental
protection; COMLAW 4: Complying
with applicable laws and regulations
on anti-fraud and corruption acts.
SAFRES 1: Safeguarding resources
against lost; SAFRES 2: Safeguarding
resources against misuse; SAFRES 3:

Safeguarding
resources
against
damage.

3.7. Data source and data collection
3.7.1. Data source
Conduct by survey in the mixed methods including qualitative
methods and quantitative methods.
3.7.2. Data collection
3.7.2.1. Data collection for qualitative method
Data collection: interview experts.
3.7.2.1. Data collection for quantitative method
Data collection: conducted survey, using questionnaire
3.8. Preliminary quantitative method and testing the concept’s scale
3.8.1. Processing of Preliminary quantitative method
Processing of Preliminary quantitative method includes steps:
Conducted survey with 130 agencies.


14
Cronbach’s alpha coefficient assess reliability of measurement
scale.
Exploratory factor analysis for internal control structure and the
effectiveness of internal control.
3.8.2. Sampling
Public non-business agencies were researched, data collection
through questionnaire, by interview face to face or email. Time of
collection data: May.2018 – Sep.2018.
3.8.3. Descriptive statistics

Agencies were surveyed with each field rate fit to rate in real.
3.8.4. Analysis for ensuring the reliability of measurement scale
Cronbach’s alpha coefficient assess reliability of measurement
scale of five components in internal control structure and four
objectives in the effectiveness of internal control.
Cronbach’s alpha results of all scales are reliable, the item-total
correlation coefficients are high (α > 0,6), so we can use for EFA.
3.8.5. Analysis for ensuring the valuable of measurement scale - EFA
Conducted EFA for internal control structure (5 components) and
the effectiveness of internal control (4 objectives), results show that
there are reliable scales.
3.8.6. Conclusion
Results of measurement of internal control structure and the
effectiveness of internal control are suit for prior studies.
CHAPTER 4. RESEARCH RESULTS AND DISCUSSION
4.1. Introduction
4.2. Results of qualitative research
4.2.1. Data collection and sumerize
The qualitative interview was conducted with 16 experts (8
experts face to face; 3 experts by phone; 5 experts by email), getting
their opinion about the relationship between internal control structure
and the effectiveness of internal control, and which the contingency


15
characteristics of public non-business agencies as a moderator in
research model.
4.2.2. Data analysis and discussion
About the relationship between internal control structure and the
effectiveness of internal control: 16/16 experts agree with having

affecting and 12/16 experts said that it impacts positively.
The contingency characteristics of public non-business agencies
as a moderator in research model: 5 characteristics (running style of
leader; field operating; annual operating results of party organization
and social – political organizations in agencies; financial automony;
impacting from managerial entity).
4.2.3. Testing valuable data
4.2.4. Findings
Internal control structure affect to the effectiveness of internal
control. There are two contingency characteristics using as moderator
in research model, including annual operating results of party
organization and social – political organizations in agencies and
financial automony.
4.2.5. Measurement financial automony of the public non-business
agencies
Financial automony of public non-business agencies is a part of
agency’s proactivity in regulations, getting four level.
4.2.6. Measurement annual operating results of the political
organization and the social - political organizations in the public nonbusiness agencies
In present, annual results of party organization and social –
political organization in public non-business agencies overall by party
organization results, getting four level.
4.3. Results of quantitative research
4.3.1. Sampling
There were 57.995 public non – business agencies in Vietnam in
2016, with highest rate for education and training sector 72,08%; for
health sector 10,62%; for other sectors 17,3%.


16

Sampling: survey 380 agencies, after filted getting 353 agencies
using in the formal quantitative research (education and training
sector: 69,97 %; health sector: 10,48%; other sectors: 19,55%).
4.3.2. Analysis of internal control structure of the public non-business
agencies in Vietnam
4.3.2.1. Confirmatory factor Analysis for internal control structure
Conducted CFA for internal control structure (a reflective
measurement charactistic, with 5 components). Results showed
that research model of internal control structure had an acceptable fit
with: Chi-square/df = 1,966 < 3; TLI = 0,948> 0,9; CFI = 0,954 >
0,9 ; RMSEA = 0,052 < 0,080.
4.3.2.1. Structrural equation model for internal control structure
Analysis technique: Pattern matrix model builder, SEM from
353 agencies in formal quantitative research. Results showed that
research model of internal control structure had an acceptable fit
with: Chi-square/df = 1,982 < 3; TLI = 0,947> 0,9; CFI = 0,952 >
0,9 ; RMSEA = 0,053 < 0,080.
Standardized regression weight highest was 0,832
(information and communication), lowest was 0,752 (risk
assessment).
4.3.3. Confirmatory factor Analysis for variables in model research the
affecting of internal control to the effectiveness of internal control
Conducted CFA for internal control structure and the
effectiveness of internal control (two reflective measurement
charactistics). Results showed that research model of internal
control structure had an acceptable fit with: Chi-square/df = 1,604 <
3; TLI = 0,947> 0,9; CFI = 0,952 > 0,9 ; RMSEA = 0,041 < 0,080.
Results showed that this model had an good fit with data
collected from public non-business agencies.
4.3.4. Evaluating the affecting of internal control to the effectiveness

of internal control across SEM – research hypotheses testing
4.3.4.1. Research model and the research hypothese
There were two hypotheses in this study, the author tested:


17
H1: Internal control structure affects positively to the
effectiveness of internal control in public non-business agencies in
Vietnam.
H2: Financial automony affects positively to the relationship
between internal control and the effectiveness of internal control.
H3: Annual operating results of party oganization and social –
political organizations affects positively to the relationship between
internal control and the effectiveness of internal control.
Research model:

Financial autonomy

Internal control structure H1 +

H2
+

The effectiveness of internal
control
+
H3

Annual operating results of party
oganization and social – political

organizations in agencies

4.3.4.2. Result of evaluating the affecting of internal control to
the effectiveness of internal control across SEM
Testing H1: Internal control structure impacts positively to the
effectiveness of internal control in public non-business agencies in
Vietnam.
Results showed that this research model had an acceptable fit
with: Chi-square/df = 1,613 < 3; TLI = 0,946> 0,9; CFI = 0,950 >


18
0,9; RMSEA = 0,042 < 0,080. Results showed that this model had
an good fit with data collected from public non-business agencies.
Accepted H1.
Internal control structure affected positively and strongly to the
effectiveness of internal control in public non-business agencies in
Vietnam.
4.3.5. SEM for congtingency characteristics affect to the relationship
between internal control and the effectiveness of internal control
4.3.5.1. Moderation model research
4.3.5.2. Moderation model for financial autonomy
Testing H2: Financial automony affects positively to the
relationship between internal control and the effectiveness of
internal control.
Results showed that this research model had an acceptable fit
with: Chi-square/df = 1,443 < 3; TLI = 0,916> 0,9; CFI = 0,922>
0,9; RMSEA = 0,036 < 0,080. Results showed that this model had
an good fit with data collected from public non-business agencies.
Table 4.7: Testing hypothese results

Chi -square df p-value
Results
Model
Fully constrained

1889,994

1310

Unconstrained
Number of group
Difference

1893,523

1311
2
1
0,06
0

3,529

Groups are
different from
research model

With P-value = 0,060, accepted H2 with reliability 90%.
Financial automony affects positively to the relationship
between internal control and the effectiveness of internal control.

4.3.5.3. Moderation model for annual operating results of the party
organization and the social - political organizations in the public nonbusiness agencies


19
Testing H3: Annual operating results of party oganization and
social – political organizations affects positively to the relationship
between internal control and the effectiveness of internal control.
Results showed that this research model had not an acceptable
fit with: Chi-square/df = 1,754 < 3; TLI = 0,876< 0,9; CFI = 0,885<
0,9; RMSEA = 0,036 < 0,080.
Had not an acceptable H3.
4.6. Findings
Hypotheses H1 and H2 were accepted.
H1: Internal control structure impacted positively to the
effectiveness of internal control in public non-business agencies in
Vietnam.
H2: Financial automony affected positively to the relationship
between internal control and the effectiveness of internal control.

CHAPTER 5. CONCLUSION AND IMPLICATIONS FOR POLICY
5.1. Introduction
5.2. Conclusion
5.2.1. Affecting of components to internal control structure
Evaluating internal control structure in public non-business
agencies in Vietnam showed that information and communication
impacted highest (0,832), risks assessment impacted lowest (0,832).
5.2.2. Affecting of internal control structure to the effectiveness of
internal control
Internal control structure impacts positively and strongly to the

effectiveness of internal control in public non-business agencies in
Vietnam. This result fit to the prior research.
5.2.3. Financial autonomy affects to relationship between internal
control structure and the effectiveness of internal control


20
SEM multi groups on two group: high level and low level.
Financial automony affected positively to the relationship between
internal control structure and the effectiveness of internal control. If
agency were financial automony with high level, internal control
structure would have impacted strongly to the effectiveness of
internal control and opposite.
5.3. Implications for policy
5.3.1. About pratice
Need to building internal control structure efficient in public
non-business agencies in Vietnam and raising financial autonomy.
5.3.2. In theory
Finding out an contingency characteristic, financial autonomy, in
moderator model researching evaluating the affecting of internal
control structure to the effectiveness of internal control
5.4. Limitations and future research directions
This research used 2 on total 5 contingency characteristics that
experts provided. Did not analysis in detail of internal control
structure in public non-business agencies in Vietnam.

CONCLUSION
This study answered two question that task in the introdution
part: (1) results showed that Internal control structure impacted
positively to the effectiveness of internal control in public nonbusiness agencies in Vietnam; (2) Financial automony, as a

moderator variable, affected positively to the relationship between
internal control structure and the effectiveness of internal control in
public non-business agencies in Vietnam. Findings out a
moderator variable in researching relationship between Internal
control structure and the effectiveness of internal control is a new
contribution in this thesis.


21
LIST OF WORKS OF THE AUTHOR
1. Nguyen Thi Hoang Lan et al (2015). Bulding internal control
system framework for public non-business agencies in
agriculture and rural development in Vinhlong. Research.
2. Nguyen Thi Hoang Lan (2018). Improving performance of
public non-business agencies by internal control. Finance
Review, May 2018, p 38-40.
3. Nguyen Thi Hoang Lan and Lam Thi Truc Linh (2018).
Bulding effective internal control structures for entities in
public sector. Accounting & Auditing Review, May 2018, p
47-49.
4. Nguyen Thi Hoang Lan (2019). Evaluating the affecting of
internal control structure to the effectiveness of internal
control in public non-business agencies. Accounting &
Auditing Review, Mar 2019, p 85-89.