The Role of Internal Control in Strengthening the Relationship Between Board Oversight and Financial Reporting Quality in Massiv Corporate Services Sdn Bhd

Wong, Shu Teng (2026) The Role of Internal Control in Strengthening the Relationship Between Board Oversight and Financial Reporting Quality in Massiv Corporate Services Sdn Bhd. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

This research provides a critical evaluation of the internal control environment within Massiv Corporate Services, a boutique corporate secretarial and accounting firm in Malaysia. As professional service firms increasingly face complex regulatory requirements and data security threats, the reliance on informal, trust-based management models becomes a significant liability. This study aims to bridge the gap between current informal operational habits and the rigorous standards of corporate governance necessitated by the modern business landscape. Adopting the COSO (2013) Internal Control-Integrated Framework as its primary theoretical lens, the research assesses the firm across five core components: control environment, risk assessment, control activities, information and communication, and monitoring. The study employs a qualitative case study methodology, involving in-depth semi-structured interviews with key stakeholders and a comprehensive review of internal documentation and workflow processes. This methodology allowed for a nuanced understanding of how informal stewardship manifests in daily operations and the specific points of failure it creates. The findings reveal that while the firm demonstrates high functional competence, it suffers from systemic "governance gaps." These include a lack of formalised directorial oversight (Board Charter), a heavy reliance on consumer-grade messaging platforms (WhatsApp) for fiduciary instructions, and significant "information siloes" caused by the manual bridging of the SPC secretarial system and AutoCount accounting software. Such deficiencies expose the firm to heightened risks of human error, data breaches, and regulatory non-compliance under the Companies Act 2016 and the Personal Data Protection Act (PDPA) 2010. To remediate these vulnerabilities, this research proposes a comprehensive Internal Control and Governance Policy specifically tailored for small-scale professional firms. The framework introduces a formal Delegation of Authority (DOA) matrix, mandates the migration of professional directives to enterprise-grade repositories, and advocates for the technical integration of accounting information systems (AIS) to ensure a "Single Source of Truth." Furthermore, the study suggests a Peer Review Monitoring Protocol as a cost-effective quality assurance mechanism. The research concludes that for small professional firms, formalising internal controls is not a bureaucratic burden but a strategic necessity to ensure long-term integrity, client trust, and operational resilience in an increasingly scrutinised regulatory environment.