Impact of factors on the effectiveness of the internal control system at Agribank

Abstract

Both domestic and international studies have demonstrated the really important role of the
internal control system (ICS) in enterprises in general and especially banks. An effective ICS will help
banks to reduce risks, be safely and effectively.
Vietnam Bank for Agriculture and Rural Development (Agribank) which is one of the four state-owned
commercial banks, is the largest bank in the banking system in terms of size of assets, capital resources,
operating network, the number of employees, the number of customers... However, Agribank also
faces many risks in operation and one of the reasons identified is due to the control gap so Agribank
needs to improve the ICS. The article aims to identify the factors affecting on the effectiveness of the
ICS at commercial banks and measure the impact of each factor on the ICS at Agribank so that this
bank has a direction to improve the ICS. The result shows on that the factors affecting the effectiveness
of the internal control system by decreasing importance are risk assessment, control environment,
information, communication, control activities and monitoring activities