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The Causes and Consequences of Internal Control Problems in Nonprofit Organizations Christine Petrovits revolutionary York University goat buoy work of business 44 atomic spell 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 humane Statistics for her help with data and Guidestar for providing access to diachronic Form 990s. We overly thank Teresa Gordon, Sarah McVay, Dan Tinkelman, Thomas Vermeer, Michelle Yetman and workshop participants at the 2007 ARNOVA Conference, the 2008 European be Association yearly Congress, the 2008 American Accounting Association Annual Meeting, and Johns Hopkins for helpful comments. The Causes and Consequences of Internal Control Problems in Nonprofit Organizations repeal This study examines the causes and consequences of innate figure deficiencies in the nonprofit organization domain using a sample of 6,572 usual charities from 1999 to 2003.

We first record that the likelihood of reporting an indispensable control problem increases for nonprofit organizations which are smaller and in hapless financial health. We thusly present evidence that weak internal controls over financial reporting have a strong negative heart and soul on the amount of subsequent world actualize ac cepted after controlling for the current di! rect 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. intromission The nonprofit sector represents a rich slice of the coupled States...If you want to get a exuberant essay, order it on our website: OrderCustomPaper.com

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