| Summary: | 碩士 === 中原大學 === 企業管理研究所 === 105 === With many domestic and foreign economic fraud incidents in recent years, Internal Control has become an increasingly important subject to management. The Executive Yuan has established the internal control system and setting up a steering group so as to enable all the subordinating units to strengthen organization effectiveness and continuous growth through enhanced internal control functions. As a subordinating organization under the Executive Yuan, the Ministry of Defense inherited the relevant laws and regulations and has actively implemented the necessary internal control so as to better monitor its financial risk, budget execution, work flow efficiency and so on. However, all these activities and efforts have not been able to change the status quo. This is a good indication that the Army’s internal control system has many weaknesses and its performance has not lived up to people’s expectations.
How organizations can capitalize on their internal factors such as resource capacity to enhance the effectiveness of internal control has become an important subject which the Army must consider earnestly. Internal capacity, also known as intellectual capital, refers to those intangible factors that collectively have a significant impact on organization’s performance. This report attempts to explore the relationship between intellectual capital and the effectiveness of organization’s internal control. The results demonstrated the fact that human capital and relational capital have positive and significant effects on the performance of organization’s internal control, while structural capital presents unstable results. Secondly, intellectual capital as a whole can effectively enhance internal control’s total performance.
|
|---|
