The Impact of Internal Control on the Quality of Financial Reports of Transportation and Logistics Business in Rayong Province
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Abstract
The transportation and logistics business is one of the most important businesses in Thailand and the business is currently highly competitive. This caused the business to need a quality internal control system. The objective of this research was to study the effect of internal control on the financial report quality of the transportation and logistics business in Rayong province. Data were collected by using simple sampling technique by using questionnaires as a tool to collect data from 253 accounting department personnel. The data were analysed for the structural equation. The data had been analysed using structural equations. The results showed that the empirical data and the theoretical model after adjusting the error of variables were harmonious. Internal controls had a positive impact on the quality of financial reports. If the internal control increased by 1 unit, the financial report quality would increase by 0.352 units. The research showed that internal control promotes efficient operations of the organization and is a process to help collect financial data to support management decisions. Also, it was found that the internal control component in the evaluation and monitoring had the greatest impact on the quality of financial reports. Therefore, the management in the organization should focus on providing internal controls for regular monitoring and evaluation to be aware of problems and obstacles in the operation immediately.
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