Factors Governing the Effectiveness of Internal Audit Activities at Enterprises: Evidence from Vietnamese Enterprises
In the world, after the global financial crisis, risk management, as well as enhancing the effectiveness of internal audit activities, began to be focused on by corporate managers. Internal audit is considered a tool to help businesses improve operational efficiency, increase compliance with regulations and ensure that the information on financial statements is truthful and reliable. The current practice of internal audit activities in Vietnamese enterprises shows that most enterprises have not demonstrated the internal audit department's position in the enterprise's organizational structure. Internal audit functions are performed but performed by other departments such as the Supervisory Board, Risk Management Board, or Audit Subcommittee. This is because Decree 05 only applies to public companies or some specific industries, there are no regulations requiring every enterprise to set up an internal audit department, so any enterprise that has this department is due to the internal needs of the enterprise itself. In addition, many businesses have not agreed to implement internal audit activities in the true sense voluntarily. This study aims to assess the impact of factors affecting the effective implementation of internal audit activities in Vietnamese enterprises.