DefinePK

Abstract

This study aims to identify the factors affecting the effectiveness of internal control systems (ICS) in small and medium-sized enterprises (SMEs) operating in the trade and service sector in Binh Duong Province, Vietnam. The key factors examined include risk assessment, control environment, information and communication, control activities, and monitoring. The survey of 155 samples and multivariate regression analysis indicate that four main factors influence ICS effectiveness: risk assessment, control environment, control activities, and monitoring, with the control environment being the most impactful. Based on these findings, the study proposes management implications to enhance ICS for SMEs, including the development and implementation of appropriate ICS systems. This contributes to improved management efficiency and aids SMEs in achieving their operational, reporting, and compliance objectives.
Keywords:  Internal Control Systems, Trade Enterprises, Effectiveness, And Binh Duong