¹MAc. Le Thi Huong Tram,²Student. Vu Thi Hong,³Student. Phan Thu Giang

¹Accounting Department, University of Labour and Social Affairs, Vietnam

²D16KT7, ID. 1116020437, Accounting Department, University of Labour and Social Affairs, Vietnam

³D16KT7, Accounting Department, University of Labour and Social Affairs, Vietnam

The article is a theoretical study. The research team has systematized the theoretical basis of group interests, internal audits, and internal audit effectiveness. The factors affecting the effectiveness of internal audit mentioned by other authors are (1) Capacity and number of employees in the internal audit department, (2) The relationship between external audit and internal audit department, (3) Management support to the internal audit department, (4) Internal audit independence. However, in order to make internal control more and more effective, we have found new factors that we believe affect internal control. Our hypothesis in this study is that the group interest factor has a negative impact on the effectiveness of internal audits. In other words, we seek to show that group interests reduce the effectiveness of internal control in Vietnamese firms. The results of empirical research through interviews with 92 accountants and internal audit staff show that group interests have a negative impact on the effectiveness of internal control. Group interests make the internal audit system not as effective as it should be. Fraud in financial statements at businesses is continuously increasing. Group interests cause some internal auditors to overlook the risk and possibility of material misstatement in the financial statements. In conclusion, the research team said that group interests have formed, strongly affecting most businesses. The resulting collusion of interest group members harms investors, damages and reduces market stability. Therefore, enterprises and management agencies need to be determined to control group interests in enterprises.

Capture theory, Interest-group theory, internal audit effectiveness, Regulatory theory,

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VOLUME 06 ISSUE 07 JULY 2023

There is an Open Access article, distributed under the term of the Creative Commons Attribution – Non Commercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting and building upon the work for non-commercial use, provided the original work is properly cited.