Evaluation of the internal control system for SMEs in the Mekong Delta based on the COSO framework

Abstract

The internal control system is an effective tool to ensure the safety of investment capital, manage business risks, and build an effective and timely operating mechanism. From that basis, the enterprise can grasp the operational situation, avoid causing loss of assets and affect its continuous operative ability. Evaluation of the five components that make up the internal control system based on the COSO framework, the study concludes that for small and medium-sized enterprises, due to limited capital, size, and the number of employees, the internal control system remains some typical limitations. First, enterprises do not ensure the confidentiality of employees’ income, causing disunity among employees. Second, the division of work to accountants, storekeepers, and cashiers also violates the principle of non-duality which has potential risks of loss and intentional profit. Third, most units have not yet established an internal control/audit committee, leading to poor risk management and difficulty controlling business objectives. Besides, an independent auditor has not reviewed the financial statements, and management of the fund’s cash amount has not yet had a scientific basis. Based on the aforementioned results, several proposed solutions will improve the internal control system for small and medium enterprises in the Mekong Delta.

Keywords

• dnnvv
• hệ thống kiểm soát nội bộ
• khuôn khổ coso