Page 548 - ISC PROCEEDINGS 21.4

increasing labor costs, high parking and rental fees, and growing demands for service
quality and environmental sustainability. Moreover, the ongoing digital transformation
and the development of smart city initiatives have required transport enterprises to
adopt information technology (IT) systems in their operations. While IT applications can
enhance efficiency and transparency, they also introduce new risks related to data
processing, system reliability, and internal control, thereby complicating cost
management practices.
Despite the growing importance of this issue, existing studies on cost control and
internal control systems have predominantly focused on traditional operational
environments. Although some research has examined cost management in transport or
service sectors, there is still a lack of studies that explicitly address cost control within an
IT-enabled environment. In particular, empirical evidence on the factors influencing the
effectiveness of cost control under digital transformation remains limited, especially in
developing countries such as Vietnam. Furthermore, prior literature has not sufficiently
clarified how IT adoption reshapes cost structures, risk factors, and control mechanisms in
urban passenger transport enterprises.
To address this gap, this study aims to examine the factors influencing cost control
in the IT environment of road passenger transport enterprises in Hanoi. The research
focuses on key dimensions of internal control, including control objectives, risk
identification, and the implementation of general and application controls in managing
production costs. By empirically analyzing these factors, the study seeks to provide a
more comprehensive understanding of cost control practices in a digitalized business
environment.
This study makes two main contributions. First, it extends the existing literature by
integrating cost control with IT-based internal control frameworks in the specific context
of urban passenger transport enterprises. Second, it provides practical implications for
managers and policymakers by identifying critical factors that can enhance cost control
effectiveness, thereby improving operational efficiency and supporting sustainable urban
transport development in Hanoi.
2. Theoretical basis
The research is based on the following theoretical foundations: cost concept (IASB),
control according to COSO 2013 and COBIT, TAM.
International Accounting Standards Board (IASB): “Expenses are factors that reduce
economic benefits in an accounting period in the form of the sale or reduction in value of
assets or the creation of liabilities, resulting in a reduction of equity capital not due to the
distribution of capital to owners”. Using the above concept to determine the cost content
in Hanoi road transport businesses and issues related to cost inspection and control.
COSO (Committee of Sponsoring Organizations) is a committee of the U.S. National
Council on Financial Reporting Fraud. COSO was established to study internal control.
COSO 2013 is the version consistent with Vietnamese Auditing Standard No. 315;
therefore, it is the version chosen by Vietnamese businesses in establishing internal control
systems. According to COSO 2013, internal control of production costs encompasses all
policies, regulations, procedures for controlling production costs, and other control
activities developed by business leaders to manage production costs effectively. Internal
control of production costs, as outlined in COSO 2013, includes identifying control
objectives, potential risks and fraud, as well as necessary control procedures to prevent
them.

547