The impact of internal audit on supply chain risk control in Vietnamese textile and garment enterprises

Abstract

In the context of a constantly fluctuating global supply chain, Vietnamese textile and garment businesses face numerous risks related to raw material supply, production schedules, product quality, logistics, delivery, traceability, and compliance with international standards. This paper analyzes the impact of internal auditing on supply chain risk control in Vietnamese textile and garment businesses. Based on theoretical approaches to internal auditing, enterprise risk management, and supply chain risk management, the study examines aspects of internal auditing including independence, the professional competence of internal auditors, the scope of risk-oriented auditing, the quality of the audit process, the level of management support, and the role of advising on improvement. The research results show that all factors related to internal auditing have a positive impact on supply chain risk control, with the scope of risk-oriented auditing and the level of management support being the most prominent influencing factors. This result confirms that internal auditing is not only a compliance check tool, but also a crucial mechanism for businesses to identify, assess, monitor, and improve their supply chain risk control systems. The article proposes several governance implications to enhance the independence, professional competence, process quality, and advisory role of internal auditing, thereby contributing to strengthening risk control capabilities and improving the competitiveness of Vietnamese textile and garment businesses.