The Relationship between the Control Environment and Effectiveness of Internal Control, Research in Vietnamese Life Insurance Companies
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 07
Abstract
The article has presented the theoretical basis of the control environment and the factors that make up the control environment in the enterprise. Building a controlled environment is one of the principles of internal control, these two factors have a relationship, support, and promote the completion and effectiveness of each other. Research results have shown the importance of internal control for businesses. Identify limitations in the control environment such as insurance enterprises not issuing specific policies on integrity and ethical values; the element of commitment on capacity not being guaranteed; The internal control department is not completely independent from the business management apparatus or the policy on training and retaining personnel has not been respected. Along with the new regulations in the Law on Insurance Business, the life insurance industry development project developed by the Vietnamese government has provided a solid basis for businesses to improve the control environment, thereby improving the quality-of-life effective internal control. The research team also based on the existing points and the ability to improve the effectiveness of internal control to propose some solutions to improve the control environment. Accordingly, creating a controlled environment in the insurance business, focusing on business ethics, perfecting the organizational structure in a compact direction, ensuring the efficiency of each department, and ensuring the good implementation of the objectives of the unit, separating the activities of the Board of Directors and the internal control department, limiting the overlapping task assignment and regularly renewing the human resource policy are the solutions offered.
Authors and Affiliations
Nguyen Zen Nguyen, Thi Hong Quyen Mai
Keywords
Related Articles
- EP ID EP727237
- DOI 10.47191/jefms/v6-i7-42
- Views 33
- Downloads 0
Corporate Governance and Market Response: Mediating Role of Firm Performance Empirical Evidence from Indonesia
This research aims to investigate the influence of corporate governance on market response (Rit) through company performance (ROI). Corporate governance uses measurements of the intensity of participation of managerial o...
An Analysis of Transportation Costs and Performance of Public Sugar Manufacturing Firms in Kenya
The sugar industry in Kenya has been in existence since the early 1920s. A report by the Export Processing Zone Authority (2015) indicates that the sugar industry supports more than six million people in the country; rep...
Effect of Turnover Tax on Small and Medium Enterprises’ (SMEs) Growth in the Clothing Retail Industry: A Case Study of Lusaka
Taxation plays an important role in the development of every economy as well as the growth of Small and Medium Enterprises (SMEs). The purpose of the study was to evaluate the effect of turnover tax on the growth of smal...
Structural Equation Model on Supply Chain Performance of the Manufacturing Sector: An Explanatory Sequential Mixed Methods Study
Supply Chain Performance (SCP) is affected by factors including supply chain structure, market conditions, among others. SCP will define profitability, growth, and sustainability, but is varied in level among different i...
Internal Audit of Hospital Services to Achieve the Implementation of Good Corporate Governance
Internal Audit is an examination conducted by a company's independent internal audit department, covering financial statements, company accounting records, control systems, and compliance with applicable government regul...