Abstract:

The Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Internal Control Integrated Framework has identified five internal control components: control environment, risk assessment, control activities, information and communication, and monitoring. The objective is to strengthen management efficiency and detect, prevent, and correct errors in business operations and promote good practices, compliance with applicable laws, and reliable financial reports and information. Hence, this study examined the relationship between the COSO’s five components of internal control and corruption deterrence in the Maldives public sector. The institutional theory was used to form the framework and develop the hypotheses to be assessed. Five hypotheses were developed and tested using data from 80 samples. Respondents of the study are the employees of State-Owned enterprises and Ministries in the Maldives. Statistical techniques such as descriptive statistics, correlation and regression analysis were used to analyse the data from the survey. The result of the study showed that from the five components of the COSO Internal Control-Integrated Framework, two components that are control environment and risk assessment have a strong and positive relationship with corruption deterrence in the Maldives public sector. Where else, control activities, information and communication, and monitoring activities are insignificant and rejected. This study will help policymakers and regulators in understanding the relationship between the internal control system and corruption occurring in the Maldives’ public sector. Further, it will help in understanding the factors towards the effectiveness of internal control requirements and taking necessary action to enhance their internal control process and its compliance with the regulations.

Keywords:

COSO, Institutional Theory, Internal Control, Corruption, Public Sector.

How to Cite:

Norziaton Ismail Khan, Mohamed Shareef and Nur Adura Ahmad Noruddin. Internal Control System and Corruption Deterrence in the Maldives Public Sector. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a169/