Nghiên cứu ảnh hưởng của những yếu tố kiểm soát nội bộ tới chất lượng giáo dục đại học của các trường đại học ngoài công lập ở việt nam tt tiếng anh

Therefore, the internal control of non-public universities in Vietnam does not have or lacks effective monitoring and supervising activities which leads to violations of regulations of h

CHAPTER 1:

INTRODUCTION

1.1 The urgency of the topic

1.1.1 Background

Higher education is one of the particular concerns of the Party, the government

and people This is clearly reflected in Resolution No 29-NQ/TW of the 11th Central

Committee on “Fundamental and comprehensive innovation in education, serving

industrialization and modernization in a socialist-oriented market economy during

international integration” The Resolution clearly stated that the goal of Vietnamese

higher education is to focus on training highly qualified human resources, fostering

talents, developing qualities, improving the capacity of self-study and self-enriching of

knowledge, creation By 2020, the objective is that Vietnamese higher education will

have a fundamental shift in quality, scale, and reach the regional and international

level In order to achieve the above objective, in addition to the efforts of public

universities, the current non-public universities are also contributing to improving the

capacity of education, training and better meeting the learning needs of society

However, the quality of non-public universities in Vietnam remains a

controversial issue During the process of formation and development over 20 years,

the quality of higher education of non-public universities reveals signs of unsecurity

In particular, while the scale and number of students increase rapidly, the conditions

to ensure the training quality of some universities are not commensurate with them

Some universities are newly established but enrolling with a scale beyond the

capacity (the capacity of lecturers, facilities, classrooms, practical equipment, library)

which results in unsecured quality of some majors In some universities, the number

of lecturers does not meet the training needs Regarding the staff, most newly

established non-public institutions face difficulties in recruiting, training lecturers and

managing officers The number of full-time lecturers in many non-public universities

is small, and they are mostly elders A number of young lecturers just graduated are

often at low level, the management staff often lacks professionalism In terms of

facilities, currently, 12 non-public universities have to rent training locations, some

universities have too many locations, the area of one location is small because

managers do not have a long-term vision to create an academic environment The

library systems of some universities are still weak, the amount of learning materials

does not meet the demand of students Regarding scientific research, there are

currently 51/65 non-public universities which have not conducted scientific research

at the state-level, notably more than 50% of universities have never funded or

invested for implementation of scientific projects at the university-level (equivalent

to almost no scientific research).In addition, the publication of scientific research of these universities in the national and international journals is still limited, especially, some universities do not have any papers published on national journals The research results showed that as quality of new students is uneven and often lower than the average level, the training of non-public universities still faces many difficulties Meanwhile, students assessed that there are inadequacies in the ratio between theory - practice and training route of such training programs

From the signs of uncertainty about the quality of higher education at the above non-public universities, it can be seen that this is a critical issue affecting the training

of high quality human resources for the country which may lead to a decline in confidence of people regarding the national quality of education This fact also shows weakness in governance of universities It can be clearly seen that the compliance with principles and regimes in higher education of some non-public universities has not been guaranteed and meanwhile, effectiveness of education and training has not met the requirements of society nowadays Improving the quality of higher education is one

of today's urgent requirements not only for public universities but also for non-public universities So what factors affect the quality of higher education in non-public universities in Vietnam?

Studies have shown that the quality of higher education is not only affected by many external factors such as politics, social, cultural, religious factors, economic development trends (Dobre, Iuliana, 2015), but also influenced by internal factors of universities One of the reasons regarding the internal perspective is that internal control is ineffective and loses its effectiveness in preventing and early detection to reduce the impact of frauds or violations Studies of Duh Rong-ruey, Chen Kuo-tay, Lin Ruey-ching, Kuo Li-chun (2014); Popescu, M Dascalu, A Bulletin (2012); Wang, Weixing (2010) showed that internal control has a close relationship with effectiveness and quality of higher education of universities Therefore, the internal control of non-public universities in Vietnam does not have or lacks effective monitoring and supervising activities which leads to violations of regulations of higher education, and failures to achieve good quality of higher education This is one

of the limitations that the internal control of these universities needs to overcome Therefore, investigating the relationship as well as measuring the impact of internal control on the quality of higher education of non-public universities in Vietnam to ensure and improve the quality of education is a critical requirement

nowadays Derived from this urgency, the research topic of this Ph.D thesis is “The

impact of internal control factors on the quality of higher education of non-public

universities in Vietnam”

1.1.2 Research overview

1.1.2.1 Studies on the impact of internal control on organizational operation

i) The impact of internal control on corporate governance

There have been many studies around the world demonstrating a positive

relationship between internal control and corporate governance such as studies of

Figen Canbay and colleagues (2018); Dumitrascu Mihaela et al (2012); Inaam

Al-Zwyalif (2015); Laura F.Spira and Micheal Page (2002); Yuan Li, Yi Liu, Younggbin

Zhao (2006) The research results showed that there is a positive relationship between

index of corporate governance and internal control, and each element of internal

control has a positive relationship with corporate governance, at the same time,

internal control affects development of new product of enterprises and plays a vital

role in market orientation for output of enterprises

ii) The impact of internal control on risk management

Based on a report of COSO in 1992, COSO conducted research on Enterprise

Risk Management (ERM) In this study, ERM consists of 8 components including:

internal environment, objective setting, event identification, risk assessment, risk

response, control activities, information and communication, monitoring In 2004,

COSO officially issued ERM as the foundation for corporate risk management

Inheriting the views of COSO on risk management, Dumitrascu Mihaela et al

(2012); Rini Lestari (2015); Danescu et al (2011) also conducted studies on the

impact of internal control on risk management The results showed that

organizational governance and internal control have a significant influence on risk

management of organizations

iii) The impact of internal control on operational efficiency

Research has shown that effective internal control helps organizations achieve

the goals of operational effectiveness and efficiency This is also proved by many

studies such as research by Salehi and colleagues (2013), Wang, Jun (2015),

Srisawangwong et al (2015), Qiang Cheng et al (2015) These studies are conducted

in different countries, including Iran, China, Thailand, the United States

Typical research on the impact of each element of internal control on

operational efficiency of organizations, and effectiveness of internal control includes

studies of Ramos (2004), Rae and Subramaniam (2006), Lannoye (1999), Armor,

Mark (2000), Lenghel, Radu Dorin (2015), Hevesi (2005), Steihoff (2001), Muhota

(2005), Calomiris and Khan (1991) Research results showed that internal control factors affect operational efficiency of organizations

iv) The impact of internal control on service quality of an organization

Ofer Barkai (2013), Barry (2006) emphasized on their research that internal control has an impact on the service quality of organizations Research results showed that internal control enhances service quality in these organizations Thus, research on the impact of internal control focuses on for-profit organizations Studies have clarified the relationship and influence of internal control

on corporate governance, risk management, operational efficiency as well as service quality of organizations However, these studies only examined the impact of internal control on each factor and considered separate impact on efficiency, and did not investigate the impact of internal control on service quality in non-public sector Therefore, internal control in non-public sector will be focused on this research

1.1.2.2 The impact of internal control on operations of non-profit organizations

i) The impact of internal control on organizational management

Research of Duncan et al (1999), Bowrin (2004), Gallagher and Radcliffe (2002) conducting on non-profit organizations proved that internal control has an impact on organizational management Although research proposals can also be applied to other non-profit organizations, the internal control of universities was not investigated

ii) The impact of internal control on operational efficiency of non-profit organizations

Studies of Petrovits et al (2011), Kamaruddin et al (2018), Gallagher and Radcliffe (2002), Lagos, Nigeria, Michael Olusegun Ojua (2016) conducting on non-profit organizations demonstrated that internal control has an impact on the operational efficiency of those organizations O'Hare, P (2002) also suggested that non-profit organizations should be encouraged to establish effective internal control

to ensure accurate reporting

iii) The impact of internal control on service quality of non-profit organizations

Norazlina Ilias et al (2016), Khalid (2010), Ilias et al (2016) conducted research on service quality of local authorities and provided that local authorities with effective internal control has better service quality than those with less effective internal control

iv) The impact of internal control on the quality of higher education in

universities

When considering the necessity of designing, establishing and implementing

internal control in universities to help universities achieve the established objectives,

some studies have initially formed the foundation theory and proposed basic contents

to design an internal control system Typical studies include the study of Wang,

Weixing (2010) In this research, it is emphasized that internal control has a close

relationship with operational efficiency of universities

Popescu, M Dascalu, A Bulletin (2012), Dorcas Titilayo Adetula, Sheriff

Balogun, Paul Uwajeh, Folashade Owolabi (2016), Tsedal Lemi (2015) conducted

research in universities and showed a link between internal control and quality

management of universities in this country In addition, the studies also pointed out

solutions to improve internal control systems in universities One of these solutions is

based on the relationship between internal control and quality management, in which

it is recommended that a common framework should be developed to improve the

structure and tools of internal control of universities, at the same time, considering

integrating risk management and quality management system to achieve the highest

management efficiency

In China, Dan Xia, Guo-Liang Du (2017) conducted a study on internal control

of colleges and universities and stated that internal control of colleges and

universities are methods, procedures and measures of preventing and control risks of

activities in internal management of colleges and universities Internal control is to

ensure operation of scientific research, teaching and other related work, while

improving the efficiency of using resources, better promoting the healthy and

sustainable development of colleges and universities

Regarding financial aspect of universities, Francis, Sambo; Imiete, Benneth

Umoghani (2018), Holter, Norma C; Seganish, W Michael (2014) provided that

self-assessing of internal control to find inefficient operating processes aims at reducing

risks and finding ways to save costs

Fr Ninik Yudianti, Ilsa Haruti Suryandari (2015) evaluated the implementation

of internal control and risk management of non-public universities to find solutions to

ensure good governance of universities to improve quality management for private

universities Research results showed that internal control positively affects the

implementation of university governance

The research of Duh, Rong-ruey et al (2014) emphasized that improving

operational efficiency is one of the objectives of internal control The authors studied

the relationship between the implementation of internal control and operational efficiency (teaching efficiency and research efficiency) of universities Research showed that in private universities, there is a positive and significant relationship between the implementation of internal control and inter-teaching efficiency but a negative relationship between the implementation of internal control and research efficiency

Regarding the relationship between internal control and the quality of higher education, some studies using qualitative research method proved that internal control has an impact on the quality of higher education Typical research is the study of Suwito Eko Pramono et al (2018) The authors emphasized that strengthening internal control is one of the measures to improve the quality of higher education at universities

By assessing internal control regarding the impact on the quality of higher education, the study of Habib Maryam Abdullahi et al (2016) showed that the internal control systems of universities in Nigeria exist but operate inefficiently This inefficiency leads to inadequate quality of lecturers, poor student performance and weakness in the management of funds and capitals Through data collection and analyzing, the study ensured that an effective internal control system will be a tool to improve the quality of higher education of universities in Nigeria

1.1.2.3 Research on the impact of internal control on performance of organizations in vietnam

In Vietnam, applied research of internal control in some specific fields is concerned by many researchers Typical research on completing and building internal control systems include the study of Ngo Tri Tue et al (2004), the research of Nguyen

Thi Phuong Hoa called “Characteristics of internal control systems in economic

corporations”, PhD thesis of Pham Binh Ngo (2011), Doctoral thesis of Nguyen Thi Lan Anh (2014), PhD thesis of Bui Thi Minh Hai (2012); PhD thesis of author Dinh Hoai Nam (2016)

In addition, there are also some articles on internal control systems of universities Typical research include studies of Dinh The Hung, Nguyen Thi Hong Thuy, Han Thi Lan

Thu (2013) implementing in public universities in Vietnam

1.1.3 Research gap and research direction

Research in the world and Vietnam only investigated the impact of internal control on organizations (for-profit and non-profit organizations) in terms of organizational governance, risk management and operational efficiency, service

quality of the organizations Studies on internal control of universities showed that

internal control has an important role in higher education institutions, affecting each

activity (such as teaching, research activities) as well as improving the quality of

higher education of universities However, there has not been any specific research

going deeper into investigating the impact of internal control on quality of higher

education in the context of non-public universities in Vietnam

Thus, based on literature review of domestic and international studies and

identifying the research gap, it can be seen that there has been no research directly

investigating the impact of internal control on the quality of higher education of the

non-public universities in Vietnam

1.2 Objectives and research questions

1.2.1 Research objectives

- General objective: Explaining the impact of elements of internal control on

the quality of higher education as well as assess the impact of these factors on the

quality of higher education of non-public universities in Vietnam Whereby, solutions

are proposed to complete internal control in order to improve the quality of higher

education of non-public universities in Vietnam

- Specific objectives:

(1) Identify components of the quality of education of non-public universities

based on perspectives of managers in the field of higher education;

(2) Identify components of internal control of non-public universities to

consider its impact on the quality of higher education;

(3) Establish a model to assess the impact of internal control on the quality of

higher education of non-public universities;

(4) Measure the impact of each element of internal control on the quality of

higher education of non-public universities in Vietnam

(5) Propose solutions to complete internal control to improve the quality of

higher education of non-public universities in Vietnam

1.2.2 Research questions

Question 1: Assess the quality of higher education of non-public universities based

on perspectives of managers in the field of higher education?

Question 2: Investigate the impact of internal control on the quality of higher

education of non-public universities?

Question 3: How internal control affects the quality of higher education of

non-public universities in Vietnam?

Question 4: What are solutions to complete internal control to improve the

quality of higher education of non-public universities in Vietnam?

1.3 Research subject and scope

1.3.1 Research subject

The paper focused on investigating the impact of internal control on the quality

of higher education of non-public universities in Vietnam

1.3.2 Scope of the study Scope regarding space: The study was conducted with a large number of

operating non-public universities in Vietnam

Scope regarding time: During the process, some survey results used in this

study were conducted from 2014 to 2018

1.4 Methodology

1.4.1 Research method

The thesis used mixed-methods research

1.4.2 Research procedure and data collection

Step 1: Literature review Step 2: Qualitative research Step 3: Quantitative research Step 4: Establish and test regression model Step 5: Analyzing - disccussing the results - Reccommendations

1.4.3 Research data

In this research, the scope is limited within non-public universities By 2018, when conducting a mass survey, the thesis identified a sample of 26 non-public universities in 3 regions across the country, including the Northern, Central and Southern Vietnam

1.5 Research structure

Apart from introduction and conclusion, the thesis consists of 5 chapters:

- Chapter 1: Introduction of research topic

- Chapter 2: Theoretical foundation of internal control and the quality of higher education

- Chapter 3: Methodology

- Chapter 4: Research results

- Chapter 5: Conclusion and recommendations to complete internal control in order to improve the quality of higher education of non-public universities in Vietnam

CHAPTER 2:

THEORETICAL FOUNDATION OF INTERNAL CONTROL AND THE

QUALITY OF HIGHER EDUCATION

2.1 Common issues of internal control of organizations

2.1.1 Nature of internal control

The concept of internal control has been developed in conjunction with the

theory and practice of accounting and auditing (Brown, 1962) In this context,

traditional internal control is considered means of securing credible recording

procedures as well as a way to prevent and detect fraudulent activities (Lee ed.,

1988) However, since internal control was first set up as a concept in accounting and

auditing documents, there has been a lot of debates about its definition and contents

(Heier, Dugan, and Sayers , 2005) and official definitions are controversial (Hay,

1993)

Starting from this perspective, a series of following studies also mentioned

internal control as a system, including the views of AICPA (1949), International

Federation of Accountants (IFAC, 2009), Alvin A Arensv et al (2000, page 196)

The viewpoints considering internal control as a system emphasize 3 effects

that need to be achieved when the internal control system is valid, that is to comply

with the law, ensure the reliability of information and safety of property

Another viewpoint considers internal control as a controling process to

achieve the objectives of organizations, including many continuous and changing

jobs in accordance with the characteristics of the processes as well as the

development of organizations This view focuses on activities of internal control

Typical studies are research of Anthony (1949, page 20), Nguyen Quang Quynh

(2014, page 9), King (2011), Robert R.Moeller (2009, page 24), COSO (1992)

2.1.2 Classification of internal control

According to the UK Auditing Practices Committee (UK APC, 1979), based on

the field of operation of internal control, internal control is divided into accounting

controls and operational controls,

According to Spencer (2003) internal control are classified as: Administrative

control, informational control, managerial control, procedural control and physical

control Also according to Spencer (2003), internal control can also be classified as

directive control, preventive control, detective control and corrective control

2.1.3 Application of COSO internal control framework in organizations

In this study, COSO 1992 is also selected as a basis for research and development of internal control of non-public universities with the confirmed advantages of COSO from previous research, specifically:

- According to Power (2007), COSO 1992 has been widely disseminated and established foundation for directors and managers regarding internal control practices

- According to IIA (2004), COSO 1992is the framework approved by IIA and

is considered “The most effective internal control guide”

- COSO 1992 provided a modern view of internal control including financial and non-financial controls

2.1.4 Factors of internal control

According to published research, components of internal control are not different in studies COSO (1992), the Sarbanes Oxley Act, the American Institute of Certified Public Accountants (AICPA) and General Accounting Office (GAO) declared that effective internal control should have five elements, including control environment, risk assessment, information and communication, control and monitoring activities These factors are also mentioned in later studies on internal control as studied of Karen A Maguire (2014), Yunna Wu, Yanwen Yin, Liqiang Jiao (2013); Popescu, M Dascalu, A Bulletin (2012); Ofori W (2011), Millichamp, A.H, (2002); Sultana R and Haque M E (2011); Angella Amudo, Eno L Inanga, (2009); Douglas NK (2011)

(i) Control environment

COSO (2013) showed that control environment is a set of standards, procedures established as a basic for implementation of internal control of organizations The control environment is influenced by a variety of internal and external factors, including history of organizations, market value, competition and the law

(ii) Risk assessment

According to COSO (2013), risk is defined as the possibility that an event will occur and adversely affect the achievement of certain objectives Risk assessment involves a dynamic and repetitive process to identify The prerequisite condition for risk assessment is the establishment of objectives and links at different levels of an entity

(iii) Control activities:

According to the Sarbanes Oxley Act (SOX, 2002), control activities are policies and supporting procedures to ensure that management directives are successfully implemented Control activities provide means to address different risks that may hinder the achievement of organizational goals

(iv) Information and communication

In a good organization, an information system is essential to guide the

operating processes of that organization The information system creates reports,

contains financial-related information, allows the management and control of an

organization (COSO, 1992) This factor should include an accounting information

system to ensure that the accounting process is valid and reliable

(v) Monitoring

According to COSO (2013), “Monitoring is the final part of internal control,

the process of assessing quality of internal control over time Monitoring has an

important role, helping internal control always operates effectively The monitoring

process is carried out by responsible people to assess the establishment and

implementation of control procedures ”

2.1.5 The impact of internal control on organizational governance and risk

management

Internal control has been proved to have a positive effect on organizational

governance and risk management of entities (Figen Canbay et al., 2018, Inaam

Al-Zwyalif, 2015, Rini Lestari, 2015) Internal control is designed and operated in

parallel with the organizational management system to help improve corporate

governance (including fairness, accountability and transparency) (Inaam Al-Zwyalif,

2015) On the other hand, internal control also affects organizational management

regarding of activities of developing new products of enterprises and plays a

market-oriented role for output of enterprises (Laura F.Spira and Michael Page, 2002; Yuan

Li, Yi Liu, Younggbin Zhao 2006)

In addition, in terms of risk management, internal control is considered to be

able to reduce risks of organizations when it is designed and operated in accordance

with the characteristics of the organizations (Dumitrascu Mihaela et al 2012)

2.2 Common issues of the quality of higher education

2.2.1 Nature of the quality of higher education

After reviewing documents, it is found that there are two directions to

determine the quality of higher education The first direction is to build a broad

definition when considering the quality is to aim at an objective or a central result,

such as fulfilling a stated mission or vision (Bogue, 1998; Harvey and Green, 1993)

Some definitions are primarily based on standards, focusing on meeting a set of

standards, specifications, predetermined requirements or focusing on exceeding the

highest standards to pursue excellence or monopoly (Cheng and Tam, 1997; Garvin,

1987; Green, 1994; Harvey and Green, 1993; Harvey and Knight, 1996; Martin and

Stella, 2007; Peterson, 1999; Vlăsceanu et al., 2007)

In contrast, other definitions mainly concern participating parties These definitions focus on the responsibility of higher education to the public or providing learning experiences to benefit students and employers (Bogue, 1998; Harvey, 2005; Haworth and Conrad, 1997; Quality Assurance Agency for Higher Education, 2012; Srikanthan and Dalrymple, 2002, 2004, 2007) In this respect, the study of higher education quality is based on approaches of different stakeholders such as: (1) Approach based on perspective of suppliers (for example, donor organizations and community); (2) Approach based on the perspectives of users of products (for example current and potential students); (3) Approach based on the perspectives of users of results (for instance employers); (4) Approach based on the perspectives of people working in education (for example lecturers and managers) (Harvey and Green, 1993; Srikanthan and Dalrymple, 2003, 2007, AUN-QA (2006)

According to the second direction, to determine the quality, it is necessary to identify specific indicators reflecting the desired input (for example, lecturers, service staff) and outputs (for instance, jobs of graduated students) (Barker, 2002; Cheng and Tam, 1997; Lagrosen, Seyyed-Hashemi, and Leitner, 2004; Oldfield and Baron, 2000; Tam, 2010; Vlăsceanu et al., 2007) This has been proved in many publications and quality assurance models so far

2.2.2 Assessment of the quality of higher education

Based on the research results of Bogue (1998), Harvey (2005), Quality Assurance Agency for Higher Education (2012), Srikanthan and Dalrymple (2002,

2004, 2007), AUN-QA (2015), The Ministry of Education and Training of Vietnam (2007) generalized criteria of assessing the quality of higher education from the perspectives of individuals who are working in the field of higher education including: criteria for objectives and tasks, criteria for teachers and managers, criteria for programs, textbooks, criteria for student composition, criteria for facilities and training equipment, criteria for organization and management, criteria for teaching and learning activities, criteria for scientific research, criteria for graduates

2.2.3 Components of the quality of higher education

Based on an approach from the perspectives of educational activists (managers, lecturers, university staff), Cheng (1996) argued that the quality of education is a multidimensional concept, a set of inputs, training processes and outputs to provide satisfactory education for employers by meeting their requirements and desires According

to Srikanthan and Dalrymple (2003, 2007), the quality of higher education is understood

as consistency (or perfection), where behavior standards are met and core characteristics are respected AUN-QA (2006) stated the quality of higher education as “Good

academic training based on good knowledge transfer and good learning environment

and good relationship between teaching and researching” Thus, in this respect,

educational managers consider the quality of higher education as the goal of the

school in which the transfer of education to students becomes a key task for the

operation of these educational institutions

There have been many studies showing components of the quality of higher

education, typically the following studies:

The Ministry of Education and Training (2007) provides 10 criteria for assessing

the quality of higher education Specifically, (1) Missions and objectives of universities,

(2) Organization and management, (3) Education programs, (4) Training activities, 5)

Staff including managerial officers, lecturers and staff, (6) Students (7) Scientific

research, application, development and technology transfer, (8) International cooperation

activities, (9) Library, learning equipment and other facilities, (10) Finance and financial

management

The set of quality assurance standards of AUN-QA (2015) is being applied in

ASEAN countries, including a number of Vietnamese universities such as

universities belonging to Vietnam National University, Ho Chi Minh City and

Vietnam National University, Hanoi The set of standards of AUN-QA (2015)

consists of 11 standards: (1) Expected learning outcomes, (2) Program description,

(3) Structure and contents of programs, (4) Methods of teaching and learning, (5)

Student assessment, (6) Quality of lecturers, (7) Quality of support staff, (8) Quality

of students and supporting activities, (9) Facilities and equipment, (10) Quality

improvement, (11) Outputs

2.3 The impact of internal control on the quality of higher education of

universities

2.3.1 Objectives and characteristics of internal control of universities

The objectives of internal control of universities include the objectives of

safety, integrity and effective use of assets, the objective of the accuracy,

completeness and usefulness of information, the objective of effectiveness and

efficiency of educational activities, the objective of compliance with laws and

regulations

Characteristics of internal control in universities: internal control has a wider

scope of control because on the one hand, universities pursue non-profit goals, on the

other hand, they need to ensure efficient use of financial resources and tangible

assets In addition, for the purpose of the quality of education, internal control in

non-public universities must simultaneously perform two functions of financial control

and non-financial control Secondly, accounting in universities has more

“complicated” characteristics than accounting in other organizations Thirdly, universities have capital and the use of the capital is quite diverse

2.3.2 Theories explaining the relationship between internal control and the quality of higher education

2.3.2.1.Agency theory

With specialized characteristic of non-public universities in Vietnam of having capital contribution activities similar to joint stock companies, this is clearly seen because managers (university administrators) often do not own many stocks, but they represent shareholders to make decisions related to interests of shareholders Therefore, the managers themselves have to control internal activities effectively to ensure stakeholders’ interests When applying agency theory to this research, it is expected that universities boards and heads of faculties and departments who are authorized by shareholders will establish a complete control system to effectively control internal activities of universities By promoting an effective control system, it will help universities enhance the quality

of higher education

2.3.2.2 Contingency theory of Organizations

This theory is the basis for non-public universities to build and design internal control system in accordance with the characteristics of such organizations When applying the contingency theory to this study, according to the explanation of this theory, it is expected that when the internal control system is established and designed in accordance with the operating characteristics of non-public universities, the quality of higher education of such universities will be higher

2.3.2.3 Social psychology of organizations

This theory is also called behavioral theory, which includes viewpoints in governance that emphasize the role of human psychological, emotional, and social factors in work This theory explains the development of control activities and monitoring mechanism in the internal control system When applied to this study, according to the explanation of this theory, it is expected that when the control and monitoring activities are ensured, the quality of higher education of non-public universities in Vietnam will increase

2.3.2.4 Stakeholder theory

This theory is to provide measures to manage effectively and improve moral values of an organization Because non-public universities often have many different stakeholders, conflicts exist regarding potential benefits, so when applied to this

research, according to the explanation of this theory, it is assumed that When the

internal control is designed appropriately and scientifically, it will solve the above

conflicts This theory also helps non-public universities determine appropriate rights

and obligations of parties, help universities identify limits, scope within the control of

universities, in order to reduce risks, and bad impacts on organizations, ensure

effective internal control

2.3.3 The impact of internal control on the quality of higher education

Internal control has been proved to have influence on the achievement of

universities’ objectives (Wang, Weixing, 2010; Popescu, M Dascalu, A Bulletin,

2012) The design, establishment and operation of effective internal controls help

achieve the universities’ objectives In addition, internal control is also considered to

have an influence on the administration of universities (Fr Ninik Yudianti, Ilsa

Haruti Suryandari, 2015) The fact that private universities have sufficient

information and knowledge in implementing internal control and risk management

will improve the quality of management for private universities Internal control is

also mentioned as an effective measure to manage finance of universities (Francis,

Sambo; Imiete, Benneth Umoghani, 2018; Holter, Norma C; Seganish, W Michael,

2014) In addition, internal control is also proved to have an influence on university

activities such as teaching activities, research activities (Duh, Rong-ruey; Chen,

Kuo-hand; Lin, Ruey-ching ; Kuo, Li-chun 2014; Dan Xia, Guo-Liang Du (2017)

Finally, internal control is also proved to have an impact on the quality of higher

education In some typical studies such as the studies of Suwito Eko Pramono;

Badingatus Solikhah, Diah Vitri Widayanti, Agung Yulianto (2018), Habib, Maryam

Abdullahi, Jalloh, Abdul Amid Aziz (2016), internal control is mentioned as a factor

that directly affects the quality of higher education

CHAPTER 3: METHODOLOGY 3.1 Research process

The research consists of 5 steps: literature review, data collection, data

processing, analyzing results, identifying and proposing solutions, recommendations

3.2 Sources of research data

Primary data:

(i) Primary data was derived from analysis, synthesis of results collected from

the interview, discussion with experts

(ii) Besides, primary data was also collected from the results of processing

questionnaires collected from mass survey of non-public universities in vietnam

Secondary data :

(i) Secondary data is collected from statistic data of higher education, thesis, journals, published scientific research works, financial statements, summary reports, audit reports of non-public universities in vietnam

(ii) Furthermore, secondary data is also collected from documents, policies, regulations issued by universities to implement internal control system

3.3 Qualitative research

- Theoritical foundation analyzed and synthesized from literature review include: (1) Theoritical foundation of internal control; (2) Theoritical foundation of the quality of higher education; (3) The relationship between internal control and the quality of higher education

- In-depth interview: an in-dept interview with 10 specialists of higher education is conducted

- Discussion of the results of qualitative research: Identify variables to measure internal control and the quality of higher education, in which the internal control consists of 48 observed variables and the quality of higher education consists of 26 observed variables

3.4 Quantitative research

3.4.1 Establish hypotheses and conceptual framework

3.4.1.1 Research hypotheses Hypothesis H1: Control environment has a positive impact on the quality of higher education of non-public universities in Vietnam

Hypothesis H2: Risk assessment has a positive impact on the quality of higher education of non-public universities in Vietnam

Hypothesis H3: Control activities have a positive impact on the quality of higher education of non-public universities in Vietnam

Hypothesis H4: Information and communication have a positive impact on the quality of higher education of non-public universities in Vietnam

Hypothesis H5: Monitoring has a positive impact on the quality of higher education of non-public universities in Vietnam

Hypothesis H6: The quality of higher education of non-public universities in Vietnam will increase with the existence of internal control.

3.4.1.2 Conceptual framework

Figure 3.3: Conceptual framework of the impact of internal control

factors on the quality of higher education of non-public universities in Vietnam

Source: developed by the author

3.4.2 Measurement scales

3.4.2.1 Independent variables

(i) Internal control: According to Karagiorgos et al (2011), five elements of

internal control are: control environment, risk assessment, information and

communication, control and monitoring activities which are used to assess internal

control

(i) Control environment (CE): According to COSO (2013), control

environment is measured by following factors: Commit to the integrity and moral

compliance of a university, Roles and rights of the University Board, Establish a

structure of rights and responsibilities, Employ competent staff and establish policies

to develop resources, Require individuals to report and take responsibilities

(i) Risk assessment (RA): According to COSO (2013), risk assessment is

measured by the following factors: Identify appropriate objectives, Identify and

analyze risks, Evaluate fraud risk, Identify and analyze significant changes

Control

environment

Risk assessment

Control activities

Information and

communication

Monitoring

The quality of higher education of non-public universities in Vietnam

H1 (+)

H2 (+)

H3 (+)

H4 (+)

H5 (+)

(iii) Control activities (CA): According to COSO (2013), control activities are

measured by the following factors: Control activities are established on a selective basis to minimize risk, and achieve objectives, Select and develop common control measures through the application of information technology in control activities, Develop control activities through procedural policies

(iv) Information and communication (IC): According to COSO (2013),

information and communications are measured by the following factors: Collect or create timely, relevant information with high quality, Internal Communication, External Communication

(v) Monitoring (M): According to COSO (2013), monitoring is measured by

the following factors: Universities conduct frequent and periodic assessments, Assess and inform defects

3.4.2.2 Dependent variables

The dependent variable in the research model is “The quality of higher education” According to research of Quality Assurance Agency for Higher Education (2012), Srikanthan and Dalrymple (2002, 2004, 2007), AUN-QA (2015), Ministry of Education and Training of Vietnam (2007), the quality of education is measured by its constituent elements, including: Students, Managerial officers, lecturers and staff, Organization and management, Educational programs, Training activities, Scientific research, application, development and transfer of technology, International cooperation activities, Libraries, learning equipment and other facilities, Financial resources (including 26 criteria)

3.4.2.3 Evaluation of mesurement scales

Based on Cronbach's Alpha coefficients of scales, it is found that all measurement scales are reliable with high Cronbach's Alpha coefficient, from α = 0.654 to α = 0,920, no observed variables being eliminated Total number of variables tested with Cronbach’s Alpha is 74 variables

3.4.2.4 Research sample

The research sample has n = 388 which satisfied the sample size

3.5 Survey method

3.5.1 Design of the questionnaire

Questions on internal control include 48 questions in which: control environment (13 questions), risk assessment (11 questions), control activities (13 questions), Information and communication (5 questions), monitoring (6 questions) Regarding the quality of higher education, there are 26 questions (Appendix 5)

3.5.2 Subjects of the survey

Targeted subjects of this study include experts from the Ministry of Education

and Training, experts from the Association of Vietnam Universities and Colleges, the

University Board, Head / Deputy Head of the departments, centers, Dean/ Vice Dean,

lecturers and staff of 26 non-public universities in Vietnam

CHAPTER 4: RESEARCH RESULTS 4.1 The current status of the quality of higher education and internal

control of non-public universities in Vietnam

4.1.1 Overview of non-public universities in Vietnam

At the end of 1988, Thang Long Non-state University Center was established,

becoming the first public university in Vietnam After that, a series of other

non-public universities have been established and put into operation According to the

statistics of the Ministry of Education and Training, by the end of 2017, the country

has 65 non-public universities, accounting for 28% of the total number of universities

nationwide The number of students of non-public universities by 2017 is 243,975

students, accounting for 13.8% of the country's students The number of lecturers in

these universities by the school year 2016-2017 is 15,158 people, accounting for 21%

of the total number of lecturers nationwide

4.1.2 The current status of the quality of higher education of non-public

universities in Vietnam

Firstly, regarding the required conditions to ensure the quality of higher

education are gradually being taken seriously by non-public universities, with many

innovations and step by step improvement

Secondly, regarding the management of higher education: currently 51/65

non-public universities are assessed and verified to satisfy conditions of quality assurance

Thirdly, some non-public universities have focused on promoting scientific

research and technology transfer activities in order to enhance scientific and

technological potentials at higher education institutions

Limitations:

Firstly, the lecturers and staff are still inadequate and weak in capacity

Facilities are still in poor conditions Some non-public universities own some land

but only have limited capital to invest in construction and purchase equipment in

moderation Some non-public universities have not attached much importance to

researching and developing courses and programs for lecturers and students, not

attached to the training activities of universities Management and administration of

universities ảe still weak and unprofessional In some non-public universities, there

exists serious disunity, signs and manifestations of fighting over powers among members of the University Board, as well as disputes over ownership of universities among investors

4.1.2 The current status of internal control of non-public universities in Vietnam

Firstly, internal control does not keep up with the changes of state and social mechanisms which affect the operation of universities

Secondly, there is a shortage of human resources in charge of internal control work in non-public universities

Thirdly, internal control does not achieve its effectiveness, creating many gaps, affecting the quality of higher education of non-public universities

Fourthly, internal control has to face with conflicts of benefits

4.2 Research result

4.2.1 Hypothesis testing

Based on SPSS, the correlation coefficients among factors of the model showed that groups of factors of Control environmental, Risk assessment, Control activities, Information and communication, Monitoring are highly correlated with the dependent variables (The quality of higher education) At the same time, the correlations among these factors are relatively high

Checking the model fit:

The regression results with Adjusted R Square of 0.825, showed that the research model has explained 82.5% of survey data collected by the author

Goodness of fit

The results of checking model fit showed Sig = 0.00 <0.01, it can be confirmed that the linear regression model is consistent with the actual data

Partial correlation coefficients

With the above results, factors directly affecting the quality of higher education

of non-public universities in Vietnam are expressed through linear regression equation as follows:

The quality of higher education = 0,482 + 0,24 (CE) + 0,135 (RA)

+ 0,278 (CA) + 0,08 (IC) + 0,144 (M)

Besides, the research can useregression results with standardized coefficients (Beta coefficient = 0)

The quality of higher education = 0,26 (CE) + 0,2 (RA) + 0,284 (CA) + 0,105 (IC) + 0,154 (M)