An Internal Control Affecting on SMEs Business Operation in Bangkok

Abstract

The objective of the study on an internal control affecting SMEs business operation in Bangkok was to find an internal control affecting financial operating control of SMEs business in Bangkok. The variables used in the study consisted of independent variables, i.e., the internal control system under 5 components of the COSO concept which were controlled environment, risk assessment, control activities, information and communication, and monitoring activities. The dependent variable which was the monetary performance measured using financial ratios was also used in the study. A questionnaire was used as a tool for the study. 399 SMEs business companies were selected as a sample. Descriptive statistics consisting of percentage, means, and standard deviation was used for data analysis while inferential statistics consisting of multiple regression was used for hypothesis testing at 0.05 significant level.

The results found that control environment, risk assessment, and control activities affected financial operating but information and communication, and monitoring activities did not. This study suggests that SMEs businesses have to pay attention to those 3 components which will lead to positive operating results.