Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Strengthening Internal Audit at Public Companies to Improve the Quality of Financial Statements: A Case Study of Hanoi Stock Exchange, Vietnam

Author(s): Vu Thi Phuong Lien, Tran Van Hoi, Phi Thi Kieu Anh

Nowadays, internal audit plays a significant role in public companies. It can evaluate and make recommendations for improving the management process or consulting on management issues performed. Besides, internal audit has the conferring of the incomplete governance systems or on backlog management problems. Therefore, the paper's goal is to evaluate internal audit activities at public companies listed on the Hanoi Stock Exchange (HNX), Vietnam. The authors surveyed 700 accountants working for 350 public companies in HNX; each company has two accountants joined, and authors got Data from February 2020 to June 2020. The authors applied quantitative methods such as testing Cronbach's Alpha and testing structural equation modeling (SEM). Study results showed three factors influencing the internal audit and the quality of financial statements at public companies of HNX with significance at 1.0 percent. Based on the results, the authors proposed the recommendations to strengthen internal audit at public companies to improve the quality of financial statements in Vietnam.

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