Influence of Internal Control Systems on Governance among Parastatals in Taiwan

Abstract

The study sought to examine the influence of internal control systems on governance among parastatals in Taiwan. The research used the descriptive research design. The target population were 15 parastatals in Songshan District, Taiwan. The study picked 20 respondents from each of the parastatals yielding to sample size of 300. Questionnaires were used to collect data and reliability and validity of the research instruments were conducted. SPSS was used to do the analysis of the data. The findings of the study indicated that internal control systems have a positive effect on governance among parastatals in Taiwan. Internal control systems also contribute to the efficient and effective use of resources in parastatals. By implementing controls for financial management, budgeting, and resource allocation, these systems promote prudent and responsible use of resources. Effective resource utilization allows parastatals to optimize their performance, deliver public services more efficiently, and achieve their objectives effectively. Furthermore, internal control systems enhance risk management within parastatals. To enhance the influence of internal control systems on governance among parastatals in Taiwan, several recommendations can be made. Firstly, it is crucial to establish comprehensive internal control policies and procedures tailored specifically to the needs of parastatals, outlining control objectives and responsibilities. Secondly, regular training programs should be implemented to enhance the knowledge and skills of employees involved in governance and internal controls. Continuous monitoring and evaluation of internal control systems are important, along with reporting and addressing control deficiencies. Collaboration and information sharing among parastatals can promote best practices, while fostering a culture of ethics and integrity through a code of conduct is essential. These recommendations aim to strengthen governance practices, ensure consistency, and promote transparency and accountability within parastatals. Keywords: Internal Control Systems, Governance, Parastatals, Taiwan