Research Opportunities in Internal Control Quality and Quality Assurance

2000 ◽  
Vol 19 (Supplement) ◽  
pp. 83-90 ◽  
Author(s):  
William R. Kinney
Keyword(s):  
Quality Assurance ◽  
Internal Control ◽  
Research Opportunities ◽  
Control Quality

Internal Control Quality and Bank Risk-Taking and Performance

2020 ◽  
Author(s):  
Matthew Baugh ◽  
Matthew Ege ◽  
Christopher G. Yust
Keyword(s):  
Internal Control ◽  
Risk Taking ◽  
Downside Risk ◽  
Internal Controls ◽  
Bank Risk ◽  
Material Weakness ◽  
Control Quality ◽  
Interest Income ◽  
Upside Risk ◽  
And Performance

Using a sample of bank-years from 2005 to 2017, we examine the effect of internal control quality on future risk-taking and performance. We find that banks that disclose a material weakness in internal controls have higher risk-taking and worse performance in the future, including having a higher (lower) likelihood of experiencing large losses (gains). These findings suggest that weak controls increase (reduce) downside (upside) risk-taking or conversely that strong controls increase (reduce) upside (downside) risk-taking. Path analyses suggest that 22.3 to 43.7 percent of the effect of internal control quality on future performance is through risk-taking. Additionally, material weaknesses are negatively associated with total asset, loan, interest income, and non-interest income growth, suggesting that internal control quality affects both core and non-core activities of banks. Overall, results suggest that strong internal controls improve bank risk-taking, in part through asymmetrically reducing downside risk-taking while facilitating upside risk-taking, ultimately improving bank performance.

Dysfunctional Behavior in Organizations: Insights from the Management Control Literature

2017 ◽  
Vol 37 (4) ◽  
pp. 117-141 ◽  
Author(s):  
Krista Fiolleau ◽  
Theresa Libby ◽  
Linda Thorne
Keyword(s):  
Risk Factors ◽  
Internal Control ◽  
Management Control ◽  
Future Research ◽  
Fraud Triangle ◽  
Audit Risk ◽  
Research Opportunities ◽  
Dysfunctional Behavior ◽  
Research Questions ◽  
Published Research

SUMMARY As the scope of the audit continues to broaden (Cohen, Krishnamoorthy, and Wright 2017), research questions in management control and internal control are beginning to overlap. Even so, there is little overlap between these fields in terms of published research to date. The purpose of this paper is to take a step in bridging the gap between the management control and the internal control literatures. We survey relevant findings from the extant management control literature published between 2003 and 2016 on dysfunctional behavior and the ways in which it might be mitigated. We then use the fraud triangle as an organizing framework to consider how the management control literature might help to address audit risk factors identified in SAS 99/AU SEC 316 (AICPA 2002). The outcome of our analysis is meant to identify and classify the extant management control literature of relevance to research on internal control in a manner that researchers new to the management control literature will find accessible. We conclude with a set of future research opportunities that can help to broaden the scope of current research in internal control.

scholarly journals The impact of inclusive business on ethical values & internal control quality: an accounting perspective

2016 ◽  
Vol 5 (4) ◽  
pp. 106-113 ◽  
Author(s):  
Tamer El Nashar
Keyword(s):  
Probability Distribution ◽  
Internal Control ◽  
Random Variable ◽  
Ethical Values ◽  
Discrete Probability ◽  
Control Quality ◽  
Inclusive Business ◽  
Potential Impact ◽  
Business Approach ◽  
The Impact

The objective of this paper is to examine the impact of inclusive business on the internal ethical values and the internal control quality while conceiving the accounting perspective. I construct the hypothesis for this paper based on the potential impact on the organizations’ awareness to be directed to the inclusive business approach that will significantly impact the culture of the organizations then the ethical values and the internal control quality. I use the approach of the expected value and variance of random variable test in order to analyze the potential impact of inclusive business. I support the examination by discrete probability distribution and continuous probability distribution. I find a probability of 85.5% to have a significant potential impact of the inclusive business by 100% score on internal ethical values and internal control quality. And to help contribute to sustainability growth, reduce poverty and improve organizational culture and learning.

scholarly journals FINANCING CONSTRAINTS, INTERNAL CONTROL QUALITY AND COST STICKINESS

2021 ◽  
Vol 22 (5) ◽  
pp. 1231-1251
Author(s):  
Yufeng Chen ◽  
Yanbai Ma
Keyword(s):  
Internal Control ◽  
Financing Constraints ◽  
Equity Financing ◽  
Promoting Effect ◽  
Moderation Effect ◽  
Listed Firms ◽  
Control Quality ◽  
Internal Financing ◽  
The Impact ◽  
Cost Stickiness

Managers think that retaining resources is more effective than rebuilding resources after exhausting them. However, financing constraints have brought great uncertainty to this resource decision-making implemented by managers. Data of manufacturing listed firms in China from 2009 to 2017 are used here to explore the impact of financing constraints on cost stickiness. This paper finds that internal financing constraints have a significant promoting effect on cost stickiness, while debt financing constraints and equity financing constraints have a significant restraining effect on cost stickiness. The internal control quality has a moderation effect on this relationship. In a firm with low quality of internal control, internal financing constraints can enhance cost stickiness, but the weakening effect of external financing on cost stickiness is not affected by internal control quality.

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