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Internal Control versus Deviation in Organizations

Fri, March 14, 10:30am to 12:00pm, Sheraton Dallas Hotel, TBA

Abstract

Internal Control mechanism can be collectively employed to address deviation in organizations. Internal controls in this paper is defined as the process effected by those charged with governance, or management designed to provide reasonable assurance about the achievement of the entity’s objectives. Deviance producing environment have an impact on individual conduct through the operation of learning mechanisms. The general culture and structure of organizations implemented by managers, and other contexts of social interaction provide learning environments in which the norms define what is approved and disapproved, and the reactions of other people and the existence of other stimuli attach different reinforcing or punishing consequences to individuals’ behavior. This paper elicits the effect of internal controls on personal choices in organizations based in a conception of rationality or rational choice. These conceptions are rooted in the analysis of human behavior developed by the early classical theorist, Cesare Beccaaria and Jeremy Bentham.

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