Drivers for Control Effectiveness

Part of the Contributions to Management Science book series (MANAGEMENT SC.)


Internal control, as introduced in Sect. 2.1, represents the means to achieve organizational objectives. More specifically, if internal control is effective, it provides reasonable assurance for the achievement of effective and efficient operations, for reliable internal and external reporting, and for compliance with laws, regulations, and internal policies.1 Also, it has been clarified that in order to achieve control effectiveness, the organization relies fundamentally on the people that perform control.2 Therefore, organizational culture, as introduced in Sect. 2.2, is important for internal control. Organizational culture is about how consensus is reached among organizational members, and the underlying values and norms that guide people's behavior. Thus, Chap. 2 cdemonstrated the importance of internal control and organizational culture. Nevertheless, as the accounting and control literature review in Chap. 3 confirms, relatively limited clarity is given on what exactly senior-level people do to influence a culture for effective internal control. This lack of research on the influence of control on culture is also confirmed in practice. Ben Heinemann, a former General Counsel of General Electric, writes in the Harvard Business Review of April 2007 (103).


Internal Control Organizational Culture Control Effectiveness Chief Executive Officer Audit Committee 
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Copyright information

© Physica-Verlag Berlin Heidelberg 2009

Authors and Affiliations

  1. 1.Lancaster University Management SchoolDept. Accounting & FinanceLancasterUnited Kingdom

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