Exploring the impact of internal control and internal control effectiveness on public sector entities – insights from international studies

Abstract

Numerous studies have been conducted in public sector entities across countries, yielding conclusions regarding the role and positive impact of internal control on organizational goal attainment, enhancement of internal audit effectiveness, fraud detection and prevention, improvement of financial reporting reliability, and positive influence on managerial decision-making (Vijayakumar and Nagaraja, 2012; Al–Twaijry et al., 2004; Jorge, 2017). In Vietnam, research on internal control in public sector entities has also been conducted, focusing on the development and refinement of internal control frameworks (e.g., Đinh Thế Hùng et al., 2013; Lê Thị Cẩm Hồng, 2014; Nguyễn Đức Thọ, 2013). Currently, public sector entities in Vietnam are oriented towards assessing their performance outcomes through internal control mechanisms, recognizing the pivotal role of internal control in achieving organizational and unit-specific objectives.This article aims to introduce the impact of internal control and its effectiveness on public sector entities.