Open AccessImpact of auditors and internal control effectiveness on the financial reporting quality in small and medium-sized enterprises in Vietnam
Author(s) -
Quoc Thuan Pham
Publication year - 2020
Publication title -
khoa học và công nghệ: kinh tế - luật - quản lý
Language(s) - English
Resource type - Journals
ISSN - 2588-1051
DOI - 10.32508/stdjelm.v4i2.632
Subject(s) - business , accounting , quality (philosophy) , audit , internal control , control (management) , quality audit , finance , internal audit , viewpoints , financial ratio , economics , management , art , philosophy , epistemology , visual arts
This study aims to determine the impact of auditors (Big 4 and non-big 4) and internal control effectiveness on the financial reporting quality in Small and medium-sized enterprises in Vietnam. The case study reasearch with participants who are in the following positions: Head of finance and accounting department; General manager/director; Internal control manager; Auditors is used to build and complete the measurement scale of financial reporting quality based on viewpoints of FASB and IASB 2018. Weighted average is applied for the elements of information quality in measuring financial reporting quality. By using the survey method with a sample of 183 respondents from small and medium - sized enterprises in Vietnam, the authors have developed a regression model showing the impact of these factors named: Auditors (Big 4 and Non-big 4) and Internal Control Effectiveness to the financial reporting quality. In which, the differences in the influence of Big 4 and Non-Big 4 on the quality of financial statements information is the highlighted contributions of this study. In terms of financial reporting quality, the survey results show that financial reporting quality in small and medium - sized enterprises in Vietnam is considered acceptable with average point being 3.49/5. Among 3 qualitative characteristics of financial reporting quality, the enhancing characteristics are highly evaluated (3.94/5) while the fundamental characteristics (relevance and faithful presentation) are considered as moderate (3.43/5 and 3.31/5).