High Internal Control Research Articles

The Relationship between Audit Committee Attributes and Audit Fees of Listed Companies in Nigeria

This paper examines the influence of audit committee (AC) attributes on audit fees (AUF) of 440 firm-year observations of listed companies in Nigeria for five year period (2012 to 2016). A multiple regression was employed in estimating the model using robust standard errors. We explore and improve prior literature of same relations by using additional variables (AC legal experts, AC stock ownership and AC chair independence). The study found that (AC size, AC financial accounting experts, AC legal experts and AC stock ownership) are positively associated with AUF in their quest for greater audit assurance. The study also established that female AC and AC chair independence act as substitute to audit quality which praises that higher internal control will be accredited to lower audit process. The findings and inferences are also consistent with complementary hypothesis of audit quality (payment of high fees in an exchange for better audit efforts. Our result is conclusive and robust for the inclusion of the foregoing AC attributes that were limitedly explored by prior studies in this relationship. Our study provides an insight on the importance of AC legal experts; AC stock ownership and AC chair independence to the current and potential stakeholders who are the direct users of financial reports. The study informs regulators and policy makers the potential influence of these unique AC attributes on auditors’ price which is one of the most crucial drivers of audit quality.

Determinant of love of money and organization ethics environment implication to earnings management behavioural perceives

Abstract This study which aims to test the effects of love of money and the ethical environment of the organization on perception of earnings management behavior with 2x2 factorial experimental research with quasi experiment design. Data collection techniques that used in this study was questionnaire and distributed to participants in university. The result showed that, there are differences among individuals in who has a high levels of love of money and a low levels of love of money in perception of earnings management behavior; and there are differences between a company’s condition that has a high internal control elements (organizational ethical environment) and in company condition where there is no internal control elements (organizational ethical environment) is low in perception of earnings management behavior; and there are interaction between love of money and ethical environment of the organization on perception of earnings management behavior.

Internal Control Audit Fee and Internal Control Audit Quality—Evidence from Integrated Audits

Based on the internal control auditing system in China, this paper studies the relationship between internal control audit fees and internal control audit quality. Using the 2011-2016 A-share listed company data test, it is found that under the control of other possible conditions, the higher the internal control audit fee and its proportion, the lower the probability of being issued anon-standard internal control audit opinion, which means that the relatively high internal control audit fee may be paid by companies to purchase more favorable internal control audit opinions. Further, the above result is found to be more significant in non-state-owned, relatively smaller companies, and clients whose total audit fees are higher. In general, from the research conclusions of this paper, the high internal control audit fees can be a form of damage to the independence and quality of internal control audit. The results have certain guiding significance for policy makers to further improve the internal control auditing system and regulate the disclosure of internal control audit fees, and also for the decision-making of auditors and listed companies.

Research on the Influence of Regional Marketization Degree on the Effect That Internal Control Suppresses Enterprises to Make Quick Money

This paper takes the 2007-2016 Shanghai-Shenzhen A-share main board listed company as a sample to empirically examine the effect of the degree of marketization in different regions on the influence of high internal control quality of listed companies’ suppression on making quick money. It is found that the suppression of the quality of internal control of enterprises is only reflected in the enterprises in high-market areas. Furthermore, the higher the degree of marketization is, the more obviously internal control suppresses making quick money.

Is patient empowerment the key to promote adherence? A systematic review of the relationship between self-efficacy, health locus of control and medication adherence.

BackgroundCurrent health policies emphasize the need for an equitable doctor-patient relationship, and this requires a certain level of patient empowerment. However, a systematic review of the empirical evidence on how empowerment affects medication adherence—the extent to which patients follow the physician’s prescription of medication intake—is still missing. The goal of this systematic review is to sum up current state-of-the-art knowledge concerning the relationship between patient empowerment and medication adherence across medical conditions. As our conceptualization defines health locus of control and self-efficacy as being crucial components of empowerment, we explored the relationship between these two constructs and medication adherence.MethodsRelevant studies were retrieved through a comprehensive search of Medline and PsychINFO databases (1967 to 2017). In total, 4903 publications were identified. After applying inclusion and exclusion criteria and quality assessment, 154 articles were deemed relevant. Peer-reviewed articles, written in English, addressing the relationship between empowerment (predictor) and medication adherence (outcome) were included.FindingsHigh levels of self-efficacy and Internal Health Locus of Control are consistently found to promote medication adherence. External control dimensions were found to have mainly negative (Chance and God attributed control beliefs) or ambiguous (Powerful others attributed control beliefs) links to adherence, except for Doctor Health Locus of Control which had a positive association with medication adherence. To fully capture how health locus of control dimensions influence medication adherence, the interaction between the sub-dimensions and the attitudinal symmetry between the doctor and patient, regarding the patient’s control over the disease management, can provide promising new alternatives.DiscussionThe beneficial effect of patients’ high internal and concurrent physician-attributed control beliefs suggests that a so-called “joint empowerment” approach can be suitable in order to foster medication adherence, enabling us to address the question of control as a versatile component in the doctor-patient relationship.

내부통제 취약기업 예측과 특성에 관한 연구 - 상장기업군과 비상장기업군 중심으로 -

본 연구는 취약한 내부통제시스템을 형성하고 있을 가능성이 높은 기업들을 예측하는 적합한 모형을 형성하고, 이를 기반으로 취약기업의 특성을 살펴보고자 했다. 분석에 사용된 자료는 K_금융기관과 대출거래가 이루어졌던 상장법인과 비상장법인을 대상으로 하였다. 주요 결과로, 금융기관이 내부통제가 취약한 기업을 예측하기 위해서는 로짓모형에 비해 판별모형이 적합하다는 결론에 도달했다. 판별모형이 내부통제 취약기업을 취약기업으로 예측하는 정확도가 높고, 취약기업을 정상기업으로 잘못분류 할 오류가 낮았기 때문이다. 내부통제가 취약한 기업의 주요특성은 낮은 신용도, 낮은 자산건전성, 높은 연체율, 낮은 영업활동현금흐름, 높은 부채비율, 그리고 부(-)의 매출액영업이익률을 형성하는 기업으로 나타났다. 본 내부통제 취약예측모형을 포함한 연구결과는 자료구성의 한계로 연구가 이루어지지 않았던 비상장기업군까지 확장하였기에, 금융기관이 내부통제 취약가능성이 높은 기업을 사전적으로 예측하여 자산손실을 예방하는 도구로 이용할 수 있을 것이다. The propose of study is to examine the characteristics of companies with high possibility to form an internal control weakness using forecasting model. This study use the actual listed/unlisted companies' data from K_financial institution. The first conclusion is that discriminant model is more valid than logit model to predict internal control weak companies. A discriminant model for predicting the vulnerability of internal control has high classification accuracy and has low the Type II error that is incorrectly classifying vulnerable companies to normal companies. The second conclusion is that the characteristic of weak internal control companies have a low credit rating, low asset soundness assessment, high delinquency rates, lower operating cash flow, high debt ratios, and minus operating profit to the net sales ratio. As not only a case of listed companies but unlisted companies which did not occur in previous studies are extended in this study, research results including the forecasting model can be used as a predictive tool of financial institutions predicting companies with high potential internal control weakness to prevent asset losses.

Exploring the changing identities, perceptions of AA and stigmatisation experienced by recovering alcoholics in the UK

This study aimed to explore two main areas of recovery from alcohol addiction: identity, and perceptions of aftercare. Seven participants recovering from alcoholism took part in semi-structured interviews in order to gain a balanced perception of aftercare. Four participants were users of Alcoholics Anonymous (AA) and three were not. Data was analysed using Interpretative Phenomenological Analysis (IPA), revealing four salient themes which serve as markers for the current problems and issues surrounding recovery from addiction: emergence of solidified identity through group membership role, surrendering one’s control, the requirement of total commitment for achievement in aftercare and anonymity as a barrier to stigma reduction. This shortened article will focus on and discuss the anonymity of AA as a barrier to stigma reduction. Applications of the findings include the potential development of new types of recovery groups to accommodate for the socially anxious or those with high internal control, and to re-evaluate the ‘anonymous’ approach and insular network adopted by AA.

Can High Quality Internal Control Reduce SMEs’ Cost of Equity Financing?

Can High Quality Internal Control Reduce SMEs’ Cost of Equity Financing?

Product market competition, state ownership and internal control quality

Based on a sample of Chinese A-share listed firms on the Shenzhen Stock Exchange and the Shanghai Stock Exchange between 2007 and 2012, we examine the effect of product market competition on the internal control quality of Chinese listed firms and the difference in this effect between state owned firms and non-state owned firms. Using the internal control index constructed by Chen et al. (2013) as the proxy for internal control quality, we find that product market competition has a significant effect on the internal control quality of Chinese listed firms: the more intense the product market competition is, the higher the internal control quality will be. However, the effect is only significant for non-state owned firms, not for state owned firms. In addition, we find that high quality internal control can improve product market competition advantage, providing support for our main findings. Overall, our study extends the literature on internal control and product market competition, provides evidence on whether internal control can help firms realise their development strategies, and offers advice to related government departments and firms on improving internal control quality.

Internal Control, Life Cycle and Earnings Quality —An Empirical Analysis from Chinese Market

Whether internal controls can effectively constrain earnings management, which is a hot topic in recent years. I investigate the impact of internal control on earnings quality based on a life cycle perspective using data of listed companies of China’s market from 2010-2013. The empirical findings indicate that high quality internal control can suppress accrual earnings management and real earnings management (except for discretionary expenses manipulating earnings management) effectively, whilst in different life cycle stages (LCSs), the relation between internal control quality and accounting earnings quality (accrual quality and real earnings quality) is different. For the accrual quality aspect, in mature LCS, internal control quality and accrual quality is positively correlated. In growth or decline LCS, the relation between internal quality and accrual quality is not significant. For the real earnings quality aspect, in decline LCS, high quality internal control can improve real earnings quality; in growth LCS or mature LCS, the relation is just the opposite.

Resistance to temptation: the interaction of external and internal control on alcohol use during residential treatment for alcohol use disorder.

BackgroundThere is evidence that drinking during residential treatment is related to various factors, such as patients' general control beliefs and self‐efficacy, as well as to external control of alcohol use by program's staff and situations where there is temptation to drink. As alcohol use during treatment has been shown to be associated with the resumption of alcohol use after discharge from residential treatment, we aimed to investigate how these variables are related to alcohol use during abstinence‐oriented residential treatment programs for alcohol use disorders (AUD).MethodsIn total, 509 patients who entered 1 of 2 residential abstinence‐oriented treatment programs for AUD were included in the study. After detoxification, patients completed a standardized diagnostic procedure including interviews and questionnaires. Drinking was assessed by patients' self‐report of at least 1 standard drink or by positive breathalyzer testing. The 2 residential programs were categorized as high or low control according to the average number of tests per patient.ResultsRegression analysis revealed a significant interaction effect between internal and external control suggesting that patients with high internal locus of control and high frequency of control by staff demonstrated the least alcohol use during treatment (16.7%) while patients with low internal locus of control in programs with low external control were more likely to use alcohol during treatment (45.9%). No effects were found for self‐efficacy and temptation.ConclusionsAs alcohol use during treatment is most likely associated with poor treatment outcomes, external control may improve treatment outcomes and particularly support patients with low internal locus of control, who show the highest risk for alcohol use during treatment. High external control may complement high internal control to improve alcohol use prevention while in treatment.

Internal Control Weakness and Accruals Quality in Companies Listed on Tehran Stock Exchange

This paper investigates the relation between internal control weakness and accruals quality using data obtained from 200 companies listed on Tehran stock exchange between 2008 and 2013. We conduct correlation analysis to determine whether internal control weakness is associated with accrual quality or not. Are the internal controls designed to ensure the validity and reliability of the accounting information system and prevent deviations in identification of accruals? We estimate internal control weakness and accrual quality separately; then to test research hypothesis correlation coefficients was measured. The results indicate that accruals quality is very strongly associated with the internal control weakness and indeed, quality of accounting information (accruals) is highly dependent on both providing information environment and information resources. According to prior research in companies with high internal control weakness, will present reduced financial information quality

Plant invasive success associated with higher N-use efficiency and stoichiometric shifts in the soil–plant system in the Minjiang River tidal estuarine wetlands of China

The tidal estuarine wetlands of China are rich in plant diversity, but several human-driven processes, such as species invasion, can affect the biogeochemical cycles of these ecosystems, and by changing soil conditions can inhibit the regeneration of native vegetation. We seasonally analyzed the carbon (C), nitrogen (N) and phosphorus (P) concentrations in soils and in leaves, stems and roots of the invasive species Spartina alterniflora and of the native species Cyperus malaccensis var. brevifolius Boeckeler. This latter species was analyzed both in natural non-invaded stands and in stands that had been invaded by Spartina but from which it had been removed and replaced by Cyperus. The aim was to investigate the effect of plant invasion, subsequent removal and replanting with a native species on C, N and P stoichiometry of the plant–soil system in the tidal wetlands of the Minjiang River. C and N concentrations averaged across seasons did not differ significantly among the plant species. P concentration was lower in the stems of Spartina than in the stems of the native species Cyperus but was not significantly different in the roots of the two species. The soil C and N concentrations were higher in the Spartina stand than in the Cyperus stand, whereas the soil P concentrations were not significantly different. The invasive species had a higher N-resorption capacity, N:P ratios in stem and roots, biomass, absolute growth and biomass N and had a lower relative growth rate and litter production than the native species. After the removal of the invasive plants, the regenerating native plants have a higher capacity to resorb N and lower relative growth rates. All these traits show that a conservative strategy and a high N-use efficiency and internal plant control of the N in the ecosystem underlie the invasive success of Spartina in this N-limited wetland. Relative growth rate was associated with lower plant N:P ratios, whereas absolute growth rate was associated with higher nutrient-use efficiency and lower C and N turnover and storage capacities in the biomass. Changes in soil properties produced by the establishment of an invasive plant can condition the later regeneration of native plants.

내외통제성과 노화불안이 중년기 성인의 노후준비에 미치는 영향

Abstract This paper was to explore the effects of the locus of control and aging anxiety of the middle-aged on preparation for old age in aging society. This survey was conducted from September, 2013 to December, 2014 and 308 responses from the survey were used for the analysis. The data was analyzed by descriptive statistics, t-test, ANOVA, pearson correlation and Multiple Regression. The research findings could be summarized as the followings. First, the mean score of aging anxiety was lower than average and the mean score of preparation for old age was higher than average. Also, Middle-aged adults showed higher internal control than external control. Second, aging anxiety was the significant predictor to explain preparation for old age in middle aged. Third, income, age and religion also were the significant predictors which have the effectiveness to the preparation for old age. Key Words : middle-aged, preparation for old age, locus of control, aging anxiety, digital university Received 24 July 2014, Revised 25 August 2014Accepted 20 October 2014Corresponding Author: Jeon, Hye Seong (Dept. of Graduate School of Legal Studies and Public Administration, Dankook University) Email: hsjeon@dankook.ac.krⒸ The Society of Digital Policy & Management. All rights reserved. This is an open-access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0), which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is ISSN: 1738-1916 properly cited.

Evaluation of the analytical performance of Roche immunoturbidimetric immunoglobulin assays and comparing to Dade Behring immunonephelometer

Objective: The aim of this study is to evaluate the analytical performance of the Roche immunoturbidimetric immunoglubulin assays, and also compare the results obtained by Roche immunoturbidimetric method to Dade Behring II Nephelometer. Methods: Low and high concentration patient samples and internal quality control materials were used to evaluate precision, limit of detection (LoD) linearity, and sample carry over of Roche immunoturbidimetric analyzer. External quality control results were used to evaluate accuracy. For method comparison, 451 patients serum were analyzed using Roche Hitachi Modular P System with an immunoturbidimetric method and Dade Behring BNII immunonephelometer with an immunonephelometric method. Results: In precision study on Roche immunoturbidimetric immunoglobulin assays, imprecision values were 1.37%, 3.88% and 5.34% for IgG, A and M, respectively. Correlation coefficents between Roche immunoturbidimetric analysis and Dade Behring BN II immunonephelometer were 0.967, 0.979 and 0.939 for IgG, IgA and IgM respectively. Conclusion: In immunoturbidimetric Roche Ig analyses precision for IgG was allowable according to the the desirable quality specifications. However, both IgA and IgM had higher imprecisions than the desirable total precision. Immunoturbidimetric Roche Ig analyses were found linear in the reference values but unreliable results were observed in the presence of excess antigen. The same samples performed on Roche analyzers needed to be diluted suggesting Dade Behring had wider linearity range than Roche immunoturbidimetric analyzer in the presence of excess antigen

The Type to Train? Impacts of Personality Characteristics on Further Training Participation

Personality traits drive behaviors and attitudes, and determine socio-economic life outcomes for individuals. This paper investigates the relationship of six personality traits, the Big Five and Locus of Control, to individual participation in employment-related further education and training (FET) in a longitudinal perspective. Initial research suggests that training is a crucial determinant of life chances. Taking this a step further, I ask what sorts of individual personality traits characterize the type to train. I attempt to answer this question using data from the German Socio-Economic Panel from the time period 2000-2008. Applying random-effects logistic regression models to 39,833 observations of 4,981 individuals over a period of nine years reveals that those who are open to new experiences and have high internal control beliefs are more likely to participate in FET, and this holds true for different model specifications. Contrary to the hypotheses, Agreeableness, Extraversion and Neuroticism do not impact FET, whereas the training effect of Conscientiousness is more complex. It shows that in addition to the classical determinants of FET such as education and occupational status, there are personality traits which characterize the type to train. Practical implications of this finding are discussed.

The Relationship between Locus of Control and Self-Confidence with Problem Solving Skills of Midwifery and Nursing Students

AIM: The main aim of the research was to evaluate the relationship between locus of control, self-confidence and problem-solving skills of midwifery and nursing students. METHOD: The research was conducted with 239 students who were studying in Midwifery and Nursing Departments of School of Health at Inonu University. The data has been collected with Demographic Information Form, Rotter\'s Locus of Control Scale, Self-confidence Scale and Problem Solving Inventory between April-May, 2011. RESULTS: It was found that students with high internal control have high internal and external self-confidence levels. Students with high internal and external self-confidence tend to have high confidence in ability to problem-solving and use approach-avoidance behaviors. Some demographic characteristics (such as income level, family type and accommodation place) of the students were found to be associated with problem-solving skills. There was no significant difference between nursing and midwifery students with regards to locus of control, self-confidence levels and problem-solving strategies. CONCLUSION: According to the findings obtained through the research, students’ locus of control was found to be associated with the internal and external self-confidence and the internal and external self-confidence to be associated with the problem-solving skills

Surviving or thriving? Do teachers have lower perceived control and well-being than other professions?

Teaching is not what it used to be. The complexity and intensity of the pressures on teachers and the pace of education reform are unprecedented. The aim of this research was to explore perceived control and well-being in teachers and other professionals. A mixed methods design was selected. Phase 1 consisted of an online quantitative survey (298 participants, 222 females, 76 males). Perceived control was measured using the Brief Levenson LOC and Generalised Self-Efficacy Scales, well-being was measured using the Life Orientation Test-Revised, Satisfaction with Life, Subjective Happiness and Ego Resilience Scales. Phase 2 consisted of semi-structured interviews (n = 6); thematic analysis was carried out. It was hypothesised that teachers have lower perceived control and well-being than other professionals, and that older teachers have higher internal control than younger teachers. Independent t-tests using teachers (n = 150) and non-teachers (n = 148) revealed that teachers’ mean scores were significantly different to those of non-teachers. Teachers’ perceived control and well-being were significantly lower than those of non-teachers (p > 0.001). The hypothesis that teachers have significantly lower perceived control and well-being than other professionals was supported. Four themes related to control were located in the qualitative analysis: autonomy, authenticity, connection to others and resilience. The study found that there were similarities between professions in terms of need for control over one’s work. Teachers value connections more highly; non-teachers value objectivity and independence more highly. It is suggested that non-teachers are better prepared to deal with change than teachers. The results are discussed in the context of ongoing reform in the education system, focusing on what actions can be taken to enhance teachers’ well-being.

A Comparison of Experienced and Inexeperienced Auditors: The Role of Feedback on Internal Control Assesments

Internal control task has a significant role in the overall process of an audit because it determines the scope of the auditor's examination. Therefore, auditors' competence as a result of obtaining experience will optimize the performance on internal control judgment. However, internal control as structured tasks which needs little judgment or experience has a rich learning environment. Therefore, it can be acquired through learning by doing as learning theory states that subjects who receive feedback after completing tasks will acquire knowledge which can only be acquired by professional auditors. This study uses experimental methods with students as participant and survey methods with experienced auditors as participants. The findings show that subjects who receive feedback after the task completion have higher internal control performance rather than subjects who do not receive any feedback. The findings also show that an outcome feedback is more appropriate to facilitate learning than an explanatory feedback. Findings also show that experience auditors have lower internal control performance than inexperienced auditors who receive feedback after task completion. The results are consistent with prior research that internal control tasksare structured tasks. Due to such a characteristic, internal control task can be acquired through learning by doing as suggested by learning theory.

Dealing with negative life events: differential effects of personal resources, coping strategies, and control beliefs.

The study examines the extent to which resources, coping strategies, and control beliefs predict adaptation to negative critical life events. Specifically, we investigated the effects of basic resources (i.e., sociodemographics, cognition, health, social), coping (i.e., assimilative and accommodative coping), and control beliefs (i.e., internal control) as well as their interplay in the context of multiple negative events. Well-being served as an indicator of adaptation. Four hundred and twenty middle-aged participants of the Interdisciplinary Longitudinal Study of Adult Development (ILSE; Schmitt 2006) were assessed at two measurement occasions 4years apart. Events and coping were assessed via interviews (e.g., assimilative coping: active problem-solving, goal-directed effort, social support; accommodative coping: reevaluation of situation, acceptance, and adjustment of standards). Participants experienced an average of six negative events between measurement occasions. Resources had positive relations to control beliefs, coping, and well-being. More resources were related to fewer negative events experienced later on. More negative events were linked to more coping and poorer well-being. Structural equation models showed that the effect of resources on well-being was mediated by assimilative coping. Subgroup analysis revealed that the beneficial effect of assimilation was restricted to individuals with high internal control beliefs. Although the relationship between events and coping did not differ between both groups, only individuals with high control beliefs benefited from assimilation, perhaps because they coped more effectively. In sum, investigating resources, coping, and control beliefs concurrently allows the identification of more complex effect patterns that enhance the understanding of individual differences in dealing with negative life events.