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    The Effects of Preventive and Detective Controls on Employee...
    research summary posted September 10, 2013 by Jennifer M Mueller-Phillips, tagged 07.0 Internal Control 
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    Title:
    The Effects of Preventive and Detective Controls on Employee Performance and Motivation
    Practical Implications:

    This study provides both guidance for designing proper controls within the accounting firm, and gives insight into evaluating the internal controls of clients.

    Citation:

    Christ, M.H., S.A. Emett, S.L. Summers, and D.A. Wood. 2012. The Effects of Preventive and Detective Controls of Employee Performance and Motivation. Contemporary Accounting Research. (29) 2: 432–452.

    Keywords:
    N/A
    Purpose of the Study:

    The purpose of this study is to determine the relative effectiveness of (1) preventive controls, (2) detective controls with immediate feedback, and (3) detective controls with delayed feedback in regards to motivating employees and directing their behavior.

    Design/Method/ Approach:

    This experiment was conducted around 2010 with 131 undergraduate and graduate college students. Students were given a simple data entry task with different types of controls; i.e., preventive, detective with immediate feedback, and detective with delayed feedback as well as a control group that was not given any kind of controls.

    Findings:

    The authors of this study find the following items with respect to comparing preventive and detective controls:

    • Preventive controls do not differ from detective controls in improving accuracy if the detective controls provide immediate feedback but preventive controls are better than detective controls with delayed feedback
    • Preventive controls reduce intrinsic motivation to perform the task
    Category:
    Internal Control