Effect of government policy and controller’s connection with relevant parties on information quality of Vietnamese audit firms in the context of COVID-19

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Accounting information provides the financial state, performance, cash flow, and notes to the enterprise’s financial statements. Information quality plays an essential role for stakeholders in making business decisions. The study examines the impact of government policy and the controller’s connection with relevant parties on the information quality of Vietnamese audit firms in the context of COVID-19. The surveyed subjects include 347 controllers of audit firms in Vietnam. The paper uses quantitative methods, specifically the exploratory factor analysis method, and the ordinary least squares are used to test the model’s hypotheses. Agency and stakeholder theories are used to explain the basis of the study’s theory. The results show that the government policy and the controller’s connection with relevant parties positively affect the information quality of Vietnamese audit firms. The level of correlation between factors is appropriate, between 0.126 and 0.618. Government policy is one of the most influential factors in information quality (0.412). Relevant parties include audit firms, relatives, and the community, and the level of connection between the controller and relatives and the community (0.298) is better than that of audit firms (0.183). The study proposes policies to connect controllers and relevant parties in cooperation and mutual support to ensure strict control activities and improve the information quality of Vietnamese audit firms.

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    • Table 1. Statistics of survey participants
    • Table 2. Summary reliability of the scales
    • Table 3. KMO and Bartlett’s test
    • Table 4. Rotated component matrix
    • Table 5. Correlations
    • Table 6. Model summary
    • Table 7. ANOVA
    • Table 8. Coefficients
    • Table 9. Hypotheses testing results
    • Table A1. The scale of factors in the research model
    • Conceptualization
      Tran Khanh Lam, Tran Quoc Thinh
    • Data curation
      Tran Khanh Lam
    • Formal Analysis
      Tran Khanh Lam, Tran Quoc Thinh
    • Funding acquisition
      Tran Khanh Lam, Tran Quoc Thinh
    • Investigation
      Tran Khanh Lam
    • Methodology
      Tran Khanh Lam
    • Project administration
      Tran Khanh Lam, Tran Quoc Thinh
    • Resources
      Tran Khanh Lam
    • Software
      Tran Khanh Lam
    • Supervision
      Tran Khanh Lam, Tran Quoc Thinh
    • Validation
      Tran Khanh Lam
    • Visualization
      Tran Khanh Lam, Tran Quoc Thinh
    • Writing – original draft
      Tran Khanh Lam, Tran Quoc Thinh
    • Writing – review & editing
      Tran Khanh Lam, Tran Quoc Thinh
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Problems and Perspectives in Management
Problems and Perspectives in Management