Effects of Internal Control System on Performance of Local Governments in Sisaket Province

Abstract

This study aimed to study the effects of internal control on performance of local governments in Sisaket Province. The independent variables used in this study were 5 factors of the internal control system: control environment, risk assessment, control activities, information and communications and monitoring. The dependent variables were the performances of the local governments in Sisaket Province, which consisted of operational efficiency and effectiveness, financial report reliability and compliance with applicable laws and regulations. The researcher used questionnaires as a tool to collect data from samples of 40 local governments in Sisaket Province by submitting 2 sets of questionnaires each. The 80 sets were replied, which represented 100%. The descriptive statistics and multiple regression were used in data analysis. The study found that all factors affected performances of local governments in Sisaket Province as follows: monitoring, control activities, information and communications, control environment and risk assessment, respectively, with the statistical significance at the level of p <0.01. Keywords—internal control, internal control and internal audit, accounting, performances, local governments