The Relationship between Political Institutional Factors and Internal Audit Effectiveness in Vietnamese Enterprises

Abstract

Using qualitative research methods, we have clarified the content of internal audits and the effectiveness of internal audits. A literature review has shown that the Political Institutions factor has not received much research attention in Vietnam. That's why we identified the gap and conducted this research. Data collected from interviews with 20 experts working in the field of accounting and auditing were analyzed using King's (2004) format and Cresswell's (2003) analysis process. The analysis results have shown that the Political Institutions factor, and its measurement factors are regulatory capacity, political stability, legal effectiveness, police accountability, and corruption control impact on internal audit effectiveness. Next, the study conducted a survey with 80 employees working in the field of accounting and auditing. This is a research step to ensure transparency in determining influencing factors. The results of this survey are consistent with the direct interview method. This means that the effectiveness of internal audits is affected by political and institutional factors.