Optimal Internal Control Strategy under Dynamic Conditions

Bala V. Balachandran, Ramachandran Ramanan

Research output: Contribution to journalReview articlepeer-review

1 Scopus citations

Abstract

The importance of optimal allocations of resources to the internal control effort of firms is necessary in a competitive environment following some initiatives mandating such efforts. Viewing the internal control effectiveness as a stock variable affecting the net benefits of the firm, we address the issue of the optimal path internal control outlays in a multiperiod setting. Our analysis highlights some interrelationships among the parameters in the model, in addition to providing a cross-point solution for switching to lower levels of outlays.

Original languageEnglish (US)
Pages (from-to)1-13
Number of pages13
JournalJournal of Accounting, Auditing & Finance
Volume3
Issue number1
DOIs
StatePublished - Jan 1988

Funding

The authors express their appreciation for the comments of an anonymous referee and for the financial support provided by the Accounting Research Centers of their respective institutions, Northwestern University and the University of North Carolina.

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics, Econometrics and Finance (miscellaneous)

Fingerprint

Dive into the research topics of 'Optimal Internal Control Strategy under Dynamic Conditions'. Together they form a unique fingerprint.

Cite this