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The Causes and Consequences of Internal Control Problems in Nonprofit Organizations Christine Petrovits brand-new York University mess buoy coach of worry 44 atomic publication 74 4th Street, entourage 10-82 New York, NY 10012 petrovits@stern.nyu.edu Catherine Shakespeare Stephen M. Ross School of Business University of Michigan 701 Tappan Street Ann Arbor, MI 48103 shakespe@umich.edu Aimee Shih New York University Stern School of Business 44 West 4th Street, Suite 10-84D New York, NY 10012 ashih@stern.nyu.edu April 2009 We thank Phomika Palmer at the field of study Center for forgiving Statistics for her help with data and Guidestar for providing access to diachronic Form 990s. We likewise thank Teresa Gordon, Sarah McVay, Dan Tinkelman, Thomas Vermeer, Michelle Yetman and workshop participants at the 2007 ARNOVA Conference, the 2008 European be Association annual Congress, the 2008 American Accounting Association Annual Meeting, and Johns Hopkins for helpful comm ents. The Causes and Consequences of Internal Control Problems in Nonprofit Organizations hook This study examines the causes and consequences of innate figure deficiencies in the noncommercial firmament using a sample of 6,572 usual charities from 1999 to 2003.

We first text file that the likelihood of reporting an native control problem increases for nonprofit organization organizations which are smaller and in hapless monetary health. We so present evidence that weak internal controls over financial reporting have a strong negative military force on the amount of subsequent world accompanime nt accepted after controlling for the curre! nt direct of public support and other factors influencing donations. Our results suggest that donors, an important rise of capital for nonprofit organizations, react either directly or indirectly to internal control information. The Causes and Consequences of Internal Control Problems in Nonprofit Organizations 1. introduction The nonprofit sector represents a rich slice of the linked States...If you want to get a exuberant essay, order it on our website: OrderCustomPaper.com

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