Optimal Internal Control Strategy under Dynamic Conditions

Bala V. Balachandran, Ramachandran Ramanan

Research output: Contribution to journalReview articlepeer-review

1 Scopus citations


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
Issue number1
StatePublished - Jan 1988

ASJC Scopus subject areas

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


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