Autonomy in decentralized purchasing
Autonomous decision on service prices
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Relationship Between Research Variables in the Model
People's Committee: operating direction, human resources, finance, investment
Department of Information and Communications : program content
Radio and Television Station: Internal spending regulations of the unit
Board of Directors
Functional Department by Group: Building Logistics/Technical Program
Administrative Department
Service units
Autonomy in terms of apparatus and personnel
Autonomy in operating expenses according to internal spending regulations
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Radio and Television Station Organizational Structure
Radio and Television Station Management Decentralization
Check and supervise Radio and Television Stations
Policies of each Radio and Television Station
Processes and procedures related to purchasing, spending, and personnel Working regulations
Reward regulations Internal inspection work Reporting system
Control objectives
Political tasks Compliance with State management regulations Operational efficiency
Improve the lives of employees
2.2. Developing research hypothesis
2.2.1. Research model
Operational objectives
Reporting objectives
Compliance goals
Control variables
Control objectives
Control environment
Risk Assessment
Control activities
Based on the characteristics of the governance mechanism at provincial radio and television stations, it can be seen that the stations are public service units, although they are assigned certain autonomy rights in terms of personnel, finance and investment; but all activities must comply with the legal regulations for a public unit. With these characteristics, the assessment of the effectiveness of the internal control system must be based on the principles of INTOSAI, combined with the principles of COSO and the characteristics of the radio and television industry. The framework model is generally shown in the diagram below:
Monitor
Information and communication
Figure 2.3: Research model to evaluate the effectiveness of the internal control system at provincial radio and television stations in Vietnam
(Source: Author's development)
2.2.2. Developing research hypothesis
The effectiveness of internal control is considered not only whether the control objectives are achieved or not, but also related to whether the components of the system exist or not, and if they exist, whether they operate or not (COSO, 2013). Originating from
From the above viewpoint, to evaluate the effectiveness of the internal control system at provincial radio and television stations in Vietnam, the thesis is conducted in two steps.
The first step is to assess whether the components of the internal control system exist or not, and if so, whether they are operating effectively. To assess this step, based on the research model presented in Figure 2.3, the assessment hypothesis is built as follows:
The first group of hypotheses: The elements that make up the components of the internal control system at provincial radio and television stations in Vietnam all exist and operate effectively.
In the second step , after proving that the components of the internal control system at provincial radio and television stations in Vietnam operate effectively, the study will evaluate their impact on the control objectives. Based on the theories presented in chapter 1 and the characteristics of the governance mechanism at provincial radio and television stations, the research hypotheses are put forward in the second step as follows.
Impact of control environment components
The control environment is the most important component of the five components of the internal control system because it affects the remaining components. Many previous studies by Jokipii (2006), Amudo (2009), Ofori (2011), Sultana and Haque (2011), Gamage et al. (2014) have shown that the control environment has a positive impact on the control objectives. In the field of radio and television, the activities of the stations are not only for efficiency since the stations switched to an autonomous mechanism but also to carry out political tasks. The control environment at radio and television stations has its own characteristics, such as the appointment of leadership positions must follow the procedures of the Party and the State; leaders (heads and heads of departments) must ensure ethical, political and professional standards; recruitment standards must follow the regulations of the Ministry of the Interior; The organizational structures of the stations (mentioned above) have similarities to ensure that political tasks are well implemented according to regulations. Therefore, the control environment is also expected to have a positive relationship with the control objectives at provincial-level radio and television stations in Vietnam:
Hypothesis H1: Control environment components have a positive impact on control objectives of provincial radio and television stations in Vietnam .
Impact of risk assessment components
Risk assessment includes identifying risks and providing solutions to manage risks, through which new control objectives can be achieved. Many previous studies by Jokipii (2006), Amudo (2009), Ofori (2011), Sultana and Haque (2011), Gamage et al. (2014) have considered this relationship and have demonstrated a positive relationship between the risk assessment component and control objectives. In the field of radio and television, the issue of risk assessment is equally important. That is, broadcasting technology changes rapidly due to the impact of science and technology; that is, the issue of the level of impact of broadcast programs on the propaganda of the State's guidelines, policies and laws; that is also the assessment of the influence of social networks and the role of PT-TH in the propaganda of the State's policies. If managers at provincial radio and television stations always assess and prevent risks, the control objectives of the stations can be achieved. Therefore, the hypothesis is:
Hypothesis H2: Risk assessment component has a positive impact on control objectives of provincial radio and television stations in Vietnam .
Impact of active control components
INTOSAI's theoretical framework considers the control activity components as procedures and specific regulations in internal control work. Many previous studies such as Jokipii (2006), Amudo (2009), Ofori (2011), Sultana and Haque (2011), Gamage et al. (2014) in the public and private sectors have demonstrated the positive relationship between control activities and control objectives. In provincial radio and television stations in Vietnam, this content is reflected in regulations on decentralization of resource use, asset procurement and many other activities. Procurement and recruitment processes are all reflected in legal documents (Law on Public Investment, Law on Management and Use of Public Assets, Law on Civil Servants, etc.); and that is the basis for each station to build its own operating regulations. This is considered a foundation for individuals
The personnel and departments in each radio and television station perform their activities in accordance with legal regulations. If a unit builds control procedures and operates them effectively, the objectives of the effectiveness and efficiency of the station, the reliability of financial statements and compliance with legal regulations are all likely to be achieved. Therefore, the hypothesis is built as follows:
Hypothesis H3: The control activity component has a positive impact on the control objectives of provincial radio and television stations in Vietnam.
Impact of Information and Communication Components
Many previous studies by Jokipii (2006), Amudo (2009), Ofori (2011), Sultana and Haque (2011), Gamage et al. (2014) in the public and private sectors have demonstrated that the relationship between the information and communication component has a positive impact on the control objective. In the context of provincial radio and television stations in Vietnam moving to an autonomous mechanism, information from the accounting department is expected to contribute to better management of public assets. In addition, State regulations on broadcasting activities, normative documents in radio and television activities, etc., if promptly communicated to functional departments at the stations, will contribute to the implementation of control objectives at provincial radio and television stations. Therefore, the hypothesis is proposed as follows:
Hypothesis H4: Information and communication components have a positive impact on the control objectives of provincial radio and television stations in Vietnam.
Impact of the monitoring component
Supervisory activities at provincial radio and television stations in Vietnam have their own characteristics in the context of Vietnam. Because they are related to radio and television broadcasting activities, supervisory activities at stations, in addition to internal regulations related to the People's Inspectorate or supervision from the Party organization, also involve state management agencies, such as: People's Committees of provinces/cities or Departments of Information and Communications. In general, the goal of supervisory activities is to ensure that the processes of purchasing, using assets and broadcasting program content comply with the regulations of the State in general and of each station in particular.
If communication and monitoring activities are more effective, the control objectives of the provincial radio and television station are expected to be achieved. Therefore, the hypothesis is:
Hypothesis H5: The monitoring component has a positive impact on the control objectives of provincial radio and television stations in Vietnam.
The above hypotheses are also considered in relation to control variables. In the research model, the control variables expected to affect the control target are gender, area of operation, and seniority.
The basis for selecting control variables is based on previous studies such as Jokipii (2006), Ofori (2011), Sanusi et al. (2015), Channar et al. (2015), Aziz et al. (2015),... However, depending on the characteristics of each country at each time and each industry and field, control variables are included to consider their impact on the control objective.
Gender is always a factor considered in sociological studies. In our country, the role of women in management is increasingly enhanced, accordingly, when implementing personnel work, all levels pay attention to planning female staff. This is no exception with provincial radio and television stations. In fact, through surveys, women increasingly occupy important positions in management work. However, because the operational goals of the stations are in accordance with the principles prescribed by the State, in internal control work, gender is expected to have no impact on the control goals.
The operating area in this study is divided into three regions: the North, the Central and the South. Similar to the gender issue, regardless of the location of operation, managers and employees at the stations must comply with the general management principles established by the State. Although in the past there have been some negative phenomena in asset management, service pricing, etc. of some provincial radio and television stations in the country, it is thought that these are only isolated phenomena. There are also opinions that people in the Central region always work with principles, so there are fewer violations of the rules in management work compared to the other two regions. Therefore, including the operating areas of provincial radio and television stations is
control variables to further examine the impact of regional factors on the control objectives.
Seniority is expected to influence control objectives because the longer a person has seniority, the more experience he or she has in creating a control environment, anticipating risks to the Station's operations, and thus influencing control objectives.
2.3. Design of measurement of variables
Measurement of variables in research models is approached in the following directions:
after:
Use previously studied variables in a consistent manner . According to
In this approach, researchers use similar variables from previous studies to use in their own research. This approach ensures the comparability of studies over time. However, in sociological studies, each locality and each country has its own political, economic, cultural, and social characteristics, so applying the original measurement will have certain limitations.
Construct variables with adjusted indexes . This approach aims to address the limitations of the above approach. Accordingly, the measurement set of previous studies is used for reference. Using in-depth interview techniques with experts, the measurement contents will be adjusted in terms of content to be associated with the research context.
Building a completely new set of measurements . This approach is often applied to exploratory studies where there is no research in this field. First, the researcher must apply theory to determine the connotation of the concept. Then, apply expert techniques and experiences related to the research field to design initial ideas for the scale set. On that basis, the indexes representing the concept to be measured are established. Through many steps of exchange and discussion, the measurement indexes will be gradually completed before entering the official research.
Based on the measurement principles mentioned above, to measure the effectiveness of the internal control system, the thesis inherits the theoretical framework of INTOSAI, taking into account the COSO theoretical framework (2013) along with previous studies as a foundation. The reason is that the current provincial radio and television stations in Vietnam are both public service units and units that are granted autonomy in operation according to Decree 43/2006/ND-CP and Decree 16/2015/ND-CP. Combining both of these theoretical frameworks and combining with previous empirical studies will be scientific and practical.
The design framework for measuring the effectiveness of internal control is carried out in the following steps:
Step 1 : To design a set of measures for the effectiveness of internal control, the thesis relies on the measurements of previous studies, the content of the theoretical framework of INTOSAI and COSO (2013) and the characteristics of control work at provincial radio and television stations. The control objectives aim at three contents: The effectiveness and efficiency of operations, the reliability of financial statements and compliance with laws and regulations . The components of the internal control system basically use the elements that make up the internal control system in an organization.
Step 2 : Based on reviewing previous studies on measurement, COSO Report (2013), INTOSAI Report in the public sector and the specifics of control work at provincial radio and television stations, the author formed the idea to build the initial questionnaire.
Step 3: From the idea of building the initial questionnaire, combine with in-depth interviews with experts in the PT-TH industry to form the official questionnaire.
economy
Step 4 : After having the official questionnaire, proceed to collect actual data.
Step 5 : After collecting data, proceed to test the reliability of the data.
scale