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AbstractResearch Question/IssueThe objective of this study is to examine whether the effectiveness of internal governance is associated with internal control material weaknesses. We employ the concept of internal governance as the checks‐and‐balances mechanism that subordinate executives apply to the chief executive officer (CEO). We predict that with long horizons and long‐term interests aligned with firms' long‐term growth, subordinate executives may have the incentive to support a high‐quality internal control system, which is an important factor contributing to firms' long‐term success.Research Findings/InsightsUsing data on CEOs' and other highest paid executives' age and compensation to measure the effectiveness of internal governance, we empirically find consistent evidence that internal governance effectiveness is associated with higher internal control quality. In particular, we find that effective internal governance is related to a lower likelihood of firms reporting internal control material weaknesses, fewer material weaknesses in internal control (ICMWs), a lower chance of firms disclosing internal control weaknesses for multiple years, and a lower probability of firms reporting entity‐level and/or account‐level material weaknesses in internal control. We also show that among the two factors forming the internal governance measure, only subordinate executives' horizon is associated with the probability of firms disclosing ICMWs. Our further analysis reveals that the probability of reporting ICMWs is lower for growth firms with effective internal governance.Theoretical/Academic ImplicationsOur findings contribute to the literature on internal governance and internal control quality. The impact of the checks‐and‐balances mechanism inherent in internal governance on firms' investment in the internal control system and thus the probability of disclosing ICMWs has not received sufficient attention from accounting researchers. While prior studies focus on individual members of the management team, our finding implies that the quality of the internal control system is a result of the joint effort of the whole management team. Unlike the extant literature that captures only certain aspects of reporting quality and information disclosures, our study emphasizes the role of the horizon dimension of internal governance in enhancing the reliability of financial reporting (measured as the quality of the internal control system).Practitioner/Policy ImplicationsOur results shed light on the important role of subordinate executives in monitoring CEOs' short‐term interests.

Innovation in the governance of external polities prompts a resonant internal rhetoric. This paper attempts to expand the concepts of citizenship and individuality by applying political language to the internal life of individuals. Repression has been a conditional means of civilizing the psyche, but in pluralistic democracies where diversity is valued, where assimilation is not a condition of citizenship and where aspirations are formed within consumerism, this tradition of self-definition may be insufficient. At a time when neither individualism nor collectivism seem able to nurture individuality, the idea of an internal polity can enrich self-awareness and strengthen a sense of agency in the world. (See Appendix for definitions of terms.)

Internal audit and internal control in particular Turkey and many European Union countries taking the place of a stronger administrative structure, administrative structures in other countries also tend to have entered into the establishment of this system. They have become concepts that are highly concentrated with the economic crises around the world. Internal audit and internal control, which are constantly developing in the international arena, today emerge as rising values. Internal audit and internal control activities, which were first applied in the private sector, started to find a place in public services in time. With the significant effect of the new public management approach, public internal audit and internal control practices have developed and become widespread. In 2003, some legislative arrangements were made within the framework of the European Union harmonization process and as a result of the requirements of the transformation in public administration. Among these regulations, the general scope of public internal audit and internal control was revealed by including the concepts of internal audit and internal control in the Public Financial Management and Control Law No. 5018, In this study, it is aimed to examine the internal audit and internal control practices of official rest homes, which are public service enterprises. Within the scope of the study, the concepts of internal audit and internal control will be examined first. Secondly, information on public internal audit and internal control will be given, and explanations regarding the internal audits of official rest homes will be presented.

This article explores the issue of internal human trafficking and asks whether these individuals should be defined as displaced individuals. Adapted from the source document.