This study aims to examine how the Committee of Sponsoring Organizations (COSO) framework can be adapted to a public-sector context (customs administration) to strengthen internal controls in bonded warehouse operations and bridge the gap between accounting theory and public-sector practice. The contributions translate COSO principles into measurable, causally ordered control criteria and ranked interventions.
This research integrated the decision-making trial and evaluation laboratory (DEMATEL) and analytic network process (ANP) approaches to construct a multi-criteria decision-making model for identifying the factors and strategies that influence the success of internal control in bonded warehouses.
The results that DEMATEL identifies control environment and operations as the system cause with the highest net influence, driving risk assessment, information and communication and monitoring. ANP ranks smuggling risk and cargo movement safety as the two most critical criteria, followed by audit/control mechanisms. The integrated ANP prioritizes an intelligent bonded management system, full-spectrum internet of things monitoring and rolling regulatory review.
The main practical implication of this study is the proposal of implementation strategies for customs to enhance internal controls in bonded warehouses and identify the critical success factors.
This study examines the integration of the five interconnect components of COSO (control environment, risk assessment, control activities, information and communication and monitoring) into public sector governance, thereby contributing to academic research in accounting and organizational change.
