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Solutions to Strengthen the Internal Control System in Paper Manufacturing Enterprises
Authors: Thanh Thi Nguyen, Dr. Ngoc Thi Bui
Number of views: 1840
In 2013, the Committee of Sponsoring Organizations of the Treadway Commission
(COSO) provided a fairly comprehensive definition of internal control: “Internal control is a process
affected by entity’s board of directors, management, and other personnel, it is designed to provide
reasonable assurance regarding the achievement of objectives relating to operations, reporting, and
compliance”. This definition indicates that internal control is indispensable to provide a reasonable
guarantee for an organization's ability to achieve its goals and sustainable development. Currently,
the internal control system in Vietnamese paper manufacturers has not met essential needs of the
society. There are more than 500 paper manufacturing enterprises in the country, in which more than
90% are small enterprises, and in which internal controls are not effectively implemented. This paper
examines reality of internal control in paper manufacturing enterprises in Northern Vietnam. Based
on that, evaluation and measures are provided in order to improve internal control. Research results
showed that there are five factors which directly affect internal control: control environment, risk
assessment, control activities, information and communication, monitoring activities.