Perception of Internal Controls Helps Explain Whistleblowing

2021 ◽  
pp. 089976402110176
Author(s):  
Andrea M. Scheetz ◽  
Tonya D. W. Smalls ◽  
Joseph Wall ◽  
Aaron B. Wilson
Keyword(s):  
Nonprofit Organizations ◽  
Internal Control ◽  
Nonprofit Sector ◽  
Internal Controls ◽  
For Profit ◽  
Organization Framework ◽  
The Relationship ◽  
Control Implementation ◽  
Three Components ◽  
For Profit Organizations

The nonprofit sector may suffer financially from inconsistency in regulations and polices surrounding internal control implementation. To address this issue, our study explores how perceived internal control strength differs between nonprofit and for-profit organizations. Furthermore, we examine three components of the Committee of Sponsoring Organization framework to determine which components might significantly influence whistleblowing for nonprofit organizations. As expected, all three components appear to significantly influence whistleblowing for those in for-profit organizations. For those in nonprofit organizations, the perception of control activities and monitoring activities significantly mediates the relationship between organization type and whistleblowing intentions. Finally, the data indicate that the use of an anonymous website for whistleblowing at a nonprofit organization may require added attention and resources if employees at nonprofits are to use this outlet to the same extent as it is used at a for-profit organization.

scholarly journals The mechanisms of governance in nonprofit organizations

2007 ◽  
Vol 4 (2) ◽  
pp. 83-88
Author(s):  
Cláudio Machado Filho ◽  
Adalberto Fischmann ◽  
Luciana Rocha de Mendonça ◽  
Sandra Guerra
Keyword(s):  
Nonprofit Organizations ◽  
Agency Theory ◽  
Theoretical Framework ◽  
Governance Mechanisms ◽  
Internal Governance ◽  
For Profit ◽  
Internal Governance Mechanisms ◽  
The Relationship ◽  
Performance Comparisons ◽  
For Profit Organizations

This paper discusses the governance issues in nonprofit organizations (NPO). The theoretical framework of agency theory is used to analyze the relationship between agents and principals (donors and volunteers) in such kinds of organizations. Similarly to the for-profit organizations, the mechanisms of incentives and monitoring are crucial to the alignment of interests among principals and agents. However, considering the NPO’s intrinsic characteristics, due to the difficulty to implement external and internal governance mechanisms, the challenges of alignment are far more complicated. The NPOs are idiosyncratic, being in many situations complex to establish performance comparisons with similar organizations

scholarly journals Internal Controls and Operational Performance of Nonprofit Organizations

2021 ◽  
Author(s):  
Nathan R Berglund ◽  
Mikhail Sterin
Keyword(s):  
Nonprofit Organizations ◽  
Financial Reporting ◽  
Internal Control ◽  
Internal Controls ◽  
Operational Performance ◽  
Control Environment ◽  
For Profit ◽  
External Stakeholders ◽  
The Impact ◽  
Robust Evidence

This study examines the impact of auditor-reported internal control deficiencies (ICDs) on operational performance within nonprofit organizations. Contemporary studies in the for-profit environment document evidence that poor internal controls over financial reporting (ICFR) cause suboptimal operational performance. While these analyses are restricted to ICFR, the nonprofit environment allows external stakeholders to observe the effectiveness of both ICFR and internal controls over compliance. We find robust evidence of negative associations between both ICD types and two key measures of nonprofit operational performance: surplus and the charitable expense ratio. Our findings are relevant to multiple nonprofit stakeholders, demonstrating that the control environment has a pervasive impact on a nonprofit's ability to effectively execute its charitable mission.

The Causes and Consequences of Internal Control Problems in Nonprofit Organizations

2011 ◽  
Vol 86 (1) ◽  
pp. 325-357 ◽  
Author(s):  
Christine Petrovits ◽  
Catherine Shakespeare ◽  
Aimee Shih
Keyword(s):  
Nonprofit Organizations ◽  
Financial Reporting ◽  
Internal Control ◽  
Nonprofit Sector ◽  
Internal Controls ◽  
Control Problems ◽  
Financial Health ◽  
Government Grants ◽  
Donor Support ◽  
Public Charities

ABSTRACT: This study examines the causes and consequences of internal control deficiencies in the nonprofit sector using a sample of 27,495 public charities from 1999 to 2007. We first document that the likelihood of reporting an internal control problem increases for nonprofit organizations that are in poor financial health, growing, more complex, and/or smaller. We then present evidence that the disclosure of weak internal controls over financial reporting is negatively associated with subsequent donor support received after controlling for the current level of donor support and other factors influencing donations. We likewise report a negative association between internal control problems and subsequent government grants. Our results suggest that donors and government agencies, important sources of capital for nonprofit organizations, react either directly or indirectly to internal control information.

Who's in Control of the Ark? A Study of Internal Controls in Operating and Auditing A Small Preschool

2019 ◽  
Vol 34 (2) ◽  
pp. 23-39 ◽  
Author(s):  
Elizabeth V. Grace ◽  
Ashley Davis
Keyword(s):  
Internal Control ◽  
Business Processes ◽  
Practical Experience ◽  
Auditor Independence ◽  
Internal Controls ◽  
Control Environment ◽  
For Profit ◽  
Not For Profit ◽  
Analytical Thinking ◽  
Financial Transactions

ABSTRACT This instructional case encourages analytical thinking about internal controls in both the operations and audit of a small, not-for-profit organization. Students examine a control environment characterized by unauthorized expenditures, lack of documentation, and missing documents. Using the COSO (2013) framework, students demonstrate understanding of business processes as they identify internal control risks and deficiencies, and recommend control improvements. Auditing students additionally apply management assertions about financial transactions and assess auditor independence. Students gain practical experience in developing flowcharts of accounting processes and writing a management letter for a familiar organization: a preschool.

scholarly journals The Relationship between Working Capital Management and Financial Sustainability of Selected Christian Denominations in Ghana

2019 ◽  
Vol 5 (2) ◽  
pp. 20
Author(s):  
Williams Kwasi Peprah ◽  
Isaac Anowuo ◽  
Daniel Adofo Kwakye Ameyaw
Keyword(s):  
Significant Relationship ◽  
Positive Relationship ◽  
Financial Sustainability ◽  
Working Capital ◽  
Current Ratio ◽  
For Profit ◽  
Not For Profit ◽  
The Relationship ◽  
Not For Profit Organizations ◽  
For Profit Organizations

Management of working capital is a fundamental aspect of finance. This is because it affects the church's liquidity and financial sustainability. The study sort of establishing the relationship between working capital and financial sustainability for selected Christian denominations in Ghana. Using bivariate correlation application in SPSS 23, the financial statements from 2013 to 2017 of 15 Christian Council of Ghana denominational members conveniently sampled and analyzed. Working capital is represented by liquidity ratios of current ratio, and cash ratio and financial sustainability are epitomized by self-support. The study revealed that there was a positive relationship between working capital and financial sustainability among Christian denomination in Ghana. In a detailed outcome, there was a statistically small positive significant relationship between self-support and cash ratio and statistically large positive significant relationship between self-support and current ratio. The study recommends to churches in Ghana to seek an enhancing relationship between their working capital and financial sustainability to prevent a possible closure of the church. Not-for-profit organizations must seek self-support through income generation and diversification to improve their Liquidity. Again, not-for-profit organizations must have a positive relationship between working capital and financial sustainability in that churches exist because of liquidity.

scholarly journals Moving Toward Neo-Totalitarianism: A Political-Sociological Analysis of the Evolution of Administrative Absorption of Society in China

2018 ◽  
Vol 9 (1) ◽  
Author(s):  
Xiaoguang Kang
Keyword(s):  
Nonprofit Organizations ◽  
Nonprofit Sector ◽  
The State ◽  
The Other ◽  
Sociological Analysis ◽  
State Capitalism ◽  
Laws And Policies ◽  
The One ◽  
The Relationship ◽  
Three Phases

AbstractChina recently promulgated and revised a number of laws, regulations and measures to regulate the nonprofit sector. All these administrative efforts increase support for Chinese nonprofit organizations (NPOs) on the one hand and put unprecedented pressure on them on the other. The seemingly contradictory effects are actually based on the same logic of Administrative Absorption of Society (AAS). This article proposes three phases in the development of AAS: an subconscious phase, a theory-modeling phase, and an institutionalization phase. The institutionalization of AAS has led to the rise of neo-totalitarianism, which is featured by state capitalism, unlimited government, and a mixed ideology of Marxism and Confucianism. Neo-totalitarianism further strengthens AAS and has begun to reshape the relationship between the state and the nonprofit sector. This article analyzes China’s nonprofit policymaking from a sociopolitical perspective, and clarifies the context, the characteristics, and the evolution of laws and policies in the nonprofit sector in macrocosm.

Nonprofit branding: a bibliometric analysis

2020 ◽  
Vol 29 (5) ◽  
pp. 655-673 ◽  
Author(s):  
Lara Mendes Christ Bonella Sepulcri ◽  
Emerson Wagner Mainardes ◽  
Cícero Caldeira Belchior
Keyword(s):  
Bibliometric Analysis ◽  
Brand Management ◽  
Stakeholder Management ◽  
Nonprofit Sector ◽  
Future Research ◽  
Content Type ◽  
Main Research ◽  
For Profit ◽  
Research Areas ◽  
The Relationship

Purpose This study aims to examine articles on nonprofit branding over an 18-year time span to develop an overview and better understanding of the subject. Design/methodology/approach This study used the Scopus database in a search for studies that deal, regardless of the approach, with branding in a nonprofit context. Subsequently, through a systematic review, a database with 84 articles was generated and 77 articles were submitted to bibliometric analysis. Findings This study identified six main research areas (brand and donation, brand management, brand orientation, nonprofit and for-profit partnership, communication strategies and stakeholder management), which were analyzed and discussed, seeking to identify the relationship between research in each area. In addition, this study presents the limitations of the research and thus verify that, although this body of literature is growing, the complexity of the nonprofit sector offers several opportunities for future research, which are pointed out at the end of the study. Practical implications This study contributes to the academic literature on the topic by providing a systematization of knowledge about branding in the nonprofit sector and also offers insights about nonprofit branding to institutions and managers in this industry. Originality/value This is the first study, to the authors’ knowledge, to evaluate and quantify the progress of brand literature in the nonprofit sector.

Information Security and Sarbanes-Oxley Compliance: An Exploratory Study

2011 ◽  
Vol 25 (1) ◽  
pp. 185-211 ◽  
Author(s):  
Linda Wallace ◽  
Hui Lin ◽  
Meghann Abell Cefaratti
Keyword(s):  
Internal Control ◽  
Internal Controls ◽  
Future Research ◽  
Internal Auditors ◽  
Sarbanes Oxley ◽  
Current Usage ◽  
Survey Results ◽  
Organizational Focus ◽  
It Personnel ◽  
Control Implementation

ABSTRACT: The Sarbanes-Oxley Act of 2002 (SOX) created a resurgence of organizational focus on internal controls. In this study, we examine the extent to which the information technology (IT) controls suggested by the ISO 17799 security framework have been integrated into organizations’ internal control environments. We collected survey data from 636 members of the Institute of Internal Auditors (IIA) on the current usage of IT controls in their organizations. In addition to identifying the most and least commonly implemented IT controls, the survey results indicate that control implementation differences exist based on a company’s status as public or private, the size of the company, and the industry in which the company operates. Training of internal auditors and/or IT personnel is also associated with significant differences in implemented controls. We discuss the implications of our research and offer suggestions for future research.

scholarly journals Fraud at the Public Park Community School District

2020 ◽  
Vol 15 (1) ◽  
pp. 90-100
Author(s):  
Rania Mousa
Keyword(s):  
School District ◽  
Internal Control ◽  
Internal Controls ◽  
Public School Districts ◽  
Community School ◽  
Public Park ◽  
The Public ◽  
For Profit ◽  
Not For Profit

ABSTRACT This case study examines potentially fraudulent activities that took place in the Public Park Community School District. Students start their investigations by reading each section and answering case questions. Students analyze potentially fraudulent incidents, identify red flags, calculate potential losses, examine deficiencies in internal controls and suggest effective internal controls. Student feedback indicates the case increased their understanding of fraudulent activities, internal control weaknesses, and effective internal controls in the specific context of public school districts. The findings also highlight the importance of cultivating a strong internal control environment in not-for-profit organizations engaging in fundraising activities.

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