Tóm tắt Luận án Completing internal control in small and medium - Sized paper production enterprises and in northern Vietnam

Nội dung tài liệu: Tóm tắt Luận án Completing internal control in small and medium - Sized paper production enterprises and in northern Vietnam

1. MINISTRY OF EDUCATION AND TRAINING MINISTRY OF FINANCE ACADEMY OF FINANCE  NGUYEN THI THANH COMPLETING INTERNAL CONTROL IN SMALL AND MEDIUM - SIZED PAPER PRODUCTION ENTERPRISES AND IN NORTHERN VIETNAM Major: Accounting Code: 62.34.03.01 SUMMARY OF ECONOMIC THESIS Science instructor: 1. Assoc. Prof. Nguyễn Bá Minh 2. Dr. Bùi Thị Ngọc HÀ NỘI – 2019 1
2. INTRODUCTION 1. The urgency of the topic During globalization and modernization, the need for control has changed quickly. The impact of the globalization market is not only a challenge for businesses but also affects more and more especially small and medium-sized enterprises (SMEs). SMEs increasingly face increasingly demanding requirements and tasks. Therefore, they require an effective internal control system (ICD) to maintain success and towards sustainable development. Although it plays a very important role, the reality is that internal control in SMEs has not been closely cared for, and the ability to access specialized resources is still limited. Economic experts have assessed that the reason for the decline in SME's business is due to fragmented activities, small scale, outdated technology, inaccessible capital sources, and weak internal control. fruit. It is these limitations that make the operation of SMEs less efficient and reduce sustainable competition in the market. In the same context, the completion of internal control in small and medium paper manufacturing enterprises in Northern Vietnam is an urgent issue. Internal control has long become one of the hot topics that not only attract the attention of researchers and scholars but also attract great attention from businesses. The fact shows that internal control is a decisive factor to the success of enterprises. According to the International Accounting Federation (IFAC), ICS is a system of policies and procedures set up to achieve four goals: safeguarding the entity's assets, ensuring the reliability of information, and ensuring the implementation of legal regimes and ensuring the effectiveness of activities. However, in order to achieve these management goals, it requires businesses to design and operate internal control systems where management policies must be fully established, implemented effectively and simultaneously. The system building factor must have the strength as a shield to protect enterprise value and at present, most of the small and medium-sized paper production firms in Northern Vietnam have not yet done this. In fact, through research and survey, the author found that internal control ME in the paper manufacturing enterprises in Northern Vietnam still has many shortcomings, such as: managers have not paid much attention to risks; organizational structure still has many 2
3. unreasonable points; low management level and quality of human resources; high environmental pollution; periodic monitoring activities have not been focused; ... these shortcomings will affect business orientation and management, and the quality of work of enterprises. Therefore, the question for these enterprises is how to build and operate internal control equipment effectively, helping businesses to improve RR efficiency, improve business efficiency and competitiveness, develop. Strategic-oriented development towards sustainable development. Stemming from that practice, the author chooses the topic "Comleting internal control in small and medium-sized paper manufacturing enterprises in Northern Vietnam" as the research topic of the doctoral thesis. 2. Overview of the research works related to the thesis topic * Studies of internal control help the organization achieve its operational goals * Studies on factors affecting the effectiveness of internal control * The study of the components of internal control * Studies on internal control in paper manufacturing enterprises Evaluate research works and identify research gaps: After analyzing the works of organizations and individuals when studying internal control from different aspects with different specific methods; The author finds that these references are valuable theoretically as well as directions for the improvement of internal control in businesses. However, there are still gaps that remain unresolved. Specifically: - No research on internal control has been applied in small and medium-sized paper enterprises in general and small and medium-sized paper enterprises in Northern Vietnam in particular. This will be the gap that the author's thesis will focus on research and solving. Paper industry is an industry with certain production characteristics, the production process goes through many stages of processing and produces many different products; Therefore, well implementing the internal control process will contribute to bringing economic efficiency, preventing asset loss in each job stage for the unit. The research scope of the author is that small businesses should have the main feature that is not strong enough to meet the increasingly stringent requirements of the economy, so the paper production industry in small and medium 3
4. enterprises in our country is gradually losing competitive position in the market: due to scarcity of raw materials, due to product quality, ... So one of the useful tools to help small and medium-sized businesses stand firm is to complete and increasingly perfecting the internal control in the unit. - Regarding the determination of the level of the influence of the factors on the effectiveness of internal control: at present, according to the above analysis, many domestic and foreign constructions have been conducted to assess the influence of individuals. to the effectiveness of internal control. However, there has been no research to determine the influence of factors on the effectiveness of internal control in small and medium-sized paper enterprises in Northern Vietnam in the direction of ensuring operational efficiency. dynamic. In this study, the author used qualitative methods incombination with quantitative methods to measure the influence of each factor with high confidence. From the above reasons, it has created a "gap" for the author to study and improve internal control in small and medium paper manufacturing enterprises in the North of Vietnam and this study according to the author is entirely appropriate. and necessary. 3. The purpose of the thesis research - Systematize the basics of internal control in businesses. - Analyze the situation of internal control in small and medium paper manufacturing enterprises in the North of Vietnam. Assess the results achieved, the limitations that exist and the causes of those limitations. - Identify factors affecting the effectiveness of internal control among small and medium-sized paper manufacturing enterprises in the North of Vietnam in order to achieve specific objectives, which are operational goals for businesses. - Based on the determination of the influence of each factor, propose solutions to improve internal control in small and medium-sized paper manufacturing enterprises in Northern Vietnam towards operating goals for businesses. industry feasibility; suitable with the conditions of small and medium enterprises; in line with industry and governmental direction. 4. Research subject and scope of the thesis 4
5. 4.1. Subject of the thesis research The research object of the thesis is the basic theoretical issues of internal control in enterprises and the situation of internal control in small and medium paper manufacturing enterprises in Northern Vietnam. 4.2. The scope of the thesis research The author has focused on internal control research in small and medium-sized paper production enterprises in the North of Vietnam with small and medium scale, not researching for micro-paper manufacturing enterprises and those without. foreign investment and private enterprises (derived from the characteristics of the paper industry in Northern Vietnam with more than 90% are small and medium-sized enterprises, while the establishment and operation of internal control is still inadequate, it also has a significant impact on the performance of enterprises.Financially-invested enterprises are not in the research scope of the topic because of internal control. These companies are strongly influenced by foreign parent companies or from subsidiaries Capital contribution partners have the right to control or significantly influence the enterprise, but for private enterprises due to the characteristics of the business owner unit, both the owner and the manager, executive, supervisor all activities of the business). Survey data in small and medium paper manufacturing enterprises in Northern Vietnam from 2014 to present. 5. Research method of the thesis 5.1. General methodology The thesis uses dialectical material research method combined with historical materialism. Since then, the awareness of issues of internal control in enterprises in general and internal control in small and medium-sized paper manufacturing enterprises in the North of Vietnam in particular will ensure logic and issues at the same time. The topic is analyzed on the basis of specific conditions from which to propose suitable solutions. 5.2. Specific research methods a. Qualitative research methods The author used COSO internal control framework on internal control components, criteria for measuring each internal control element and assessed the 5
6. impact of internal control components on the internal control. the effectiveness of internal control. Since then, the author has summarized into a set of criteria to measure the factors that constitute internal control and the effectiveness of internal control of the enterprise. The questionnaire was created on the basis of choosing the method of measuring the variables of some previous studies related to internal control. Before the completed questionnaire was built, the author conducted observations and in-depth interviews with senior managers of some small and medium-sized paper manufacturing enterprises in Northern Vietnam, in order to determine the scale of the group of factors affecting internal control and the effectiveness of internal control. The author has designed guidelines for in-depth interviews (appendix 02); Information about enterprises interviewed by the author is shown in Appendix 03. In-depth interviews in qualitative research focused on the following: - Does internal control in small and medium paper manufacturing enterprises in Northern Vietnam currently exist? - What are factors affecting internal control in small and medium paper manufacturing enterprises in Northern Vietnam? The content of the interviews was recorded by the author, then summarized to give results. Results through qualitative research will help complete the measurement scale and research model. In addition, the author uses a case study method of enterprises such as: Tien Thanh Joint Stock Company; Truong Xuan Paper Limited Company; Thanh Dung Limited Company; Hong Phu Company Limited; HapacoHpp Joint Stock Company; Phong Chau Paper Trading and Production Joint Stock Company; Bbp Paper Joint Stock Company; Hoa Than Paper Vietnam Co., Ltd to collect detailed information on the status of factors: control environment, risk assessment, information and communication systems, control and supervision activities at these businesses. b. Quantitative research method c. Data collection methods 6. The contribution of the thesis 6
7. - Theoretically: The thesis has identified characteristics of small and medium- sized enterprises that affect the design and operation of internal control in small and medium-sized enterprises to identify criterias for evaluating internal control in small and medium enterprises; built a model to consider the impact of the effectiveness of internal control affecting operational objectives of small and medium enterprises. - In practice: The thesis presents and analyzes characteristics of the small and medium-sized paper manufacturing enterprises in the North of Vietnam affecting internal control; analyzes key risks affecting internal control in small and medium paper manufacturing enterprises in Northern Vietnam. The dissertation investigated and analyzed status of internal control among small and medium paper manufacturing enterprises in Northern Vietnam through the use of qualitative and quantitative research methods, which identified factors influenced internal control and assessed in detail each element of internal control as well as basic control processes in small and medium paper production enterprises in Northern Vietnam. - Applicability: The thesis has proposed solutions to improve internal control in small and medium-sized paper enterprises in Northern Vietnam in accordance with the industry's development orientation on the basis of maintaining and promoting the effectiveness of controll environment, risk assessment, control activities, information and communication, monitoring in small and medium-sized enterprises surveyed. The thesis also provides conditions and steps to implement solutions in these small and medium enterprises. 7. The layout of the thesis In addition to the introduction and conclusion, the thesis is structured into three chapters: Chapter 1: Theoretical basis about internal control and characteristics of small and medium-sized businesses affecting internal control. Chapter 2: Actual internal control situation in small and medium paper manufacturing enterprises in Northern Vietnam. Chapter 3: Solutions to improve internal control in small and medium paper manufacturing enterprises in the North of Vietnam 7
8. CHAPTER 1 GENERAL THEORY OF INTERNAL CONTROL AND CHARACTERISTICS OF SMALL AND MEDIUM ENTERPRISES AFFECTING INTERNAL CONTROL 1.1. Overview of the control 1.1.1. Control concept * Control research is a risk prevention component * Control studies emphasize the evaluation process to achieve the goal Based on the research of scientists' points of view, the author made his point about control: Control is an important management function, designed based on the operational plan of The organization aims to minimize the factors that adversely affect the operation of an object. Control is carried out regularly and continuously in all activities of each management object in order to achieve the highest goals of the organization. 1.1.2. Internal control in the business 1.1.2.1. Internal control concept * The concept of internal control affects the performance of an organization, helping it achieve its goals * The concept of internal control is a risk prevention measure Based on the research of scientists' points of view, the author made his opinion on internal control: Internal control is a process implemented uniformly within an organization, from the Council. management, the Board of Directors to all employees through a range of activities, measures, plans, views, rules, policies and efforts of those members in order to control all activities in organization. Through this, it is also necessary to recognize, prevent and handle the risks that occur to ensure the organization operates continuously and consistently in accordance with the set business strategy orientation towards development. lasting. 1.1.2.2. The need for Internal Control 1.1.2.3. Objective of Internal Control 1.1.2.4. Roles and responsibilities of entities in building Internal Control - Board of Directors / Board of Members: 8
9. 1.1.2.5. Frameworks for Internal Control COSO frame; COBIT frame; COCO framework; Guide Tulbul on Internal Control. Thereby clearly stating the reason for choosing COSO framework First, the COSO Framework has been widely accepted around the world. COSO has succeeded not only in codifying the theoretical basis of Internal Control but also in practical application. The COSO framework has been used by business organizations of all sizes around the world since its inception. Auditing companies have also successfully used the COSO framework to learn about a client's internal control system. As such, it can be seen that the COSO framework can be applied to different types of businesses at different scales. Second, in 2005, COSO issued the guideline "Internal control of Financial Statements - Guidance for small-sized public companies", confirming that small and medium-sized enterprises can apply The use of the COSO framework in their specific conditions aims to build effective internal control. Third, the COSO Framework specifies each element of the internal control component. This allows businesses in general and small and medium-sized enterprises in particular to measure the effectiveness of each internal control element through simultaneous analysis and evaluation on the basis of weak factors. that factor to improve and improve the operational efficiency of Internal Control and Enterprises. 1.1.2.6. Components of internal control Firstly, Environment control Second, risk assessment Third, control activities Fourth, information and communication system Thursday, monitoring 1.1.2.7. Potential limitations of internal control 1.2. The operational characteristics of small and medium-sized businesses affect internal control 1.2.1. Small and medium business concept 1.2.2. Characteristics of small and medium enterprises in Vietnam 9
10. 1.2.3. Characteristics of small and medium-sized businesses that affect internal control 1.3. International experience and lessons learned for Vietnam when developing and operating internal control in small and medium enterprises 1.3.1. Experience in building and operating internal control in small and medium paper manufacturing enterprises in some countries 1.3.2. Lessons learned in establishing and operating internal control in small and medium paper manufacturing enterprises in Northern Vietnam CONCLUSION OF CHAPTER 1 10