Universal Application of Internal Controls

Internal controls are accounting procedures or systems that are designed to assure the implementation of a policy or to remove the opportunity for fraud. An example of an internal control is the way tithing is processed in the Church of Jesus Christ of Latter-day Saints. The rule is, tithing can only be handed to a member of the bishopric and that tithing must be counted and recorded by two members of the bishopric or the ward clerk. The controls limit the opportunity (temptation) for fraud.

Consider the principle behind internal controls: with reduced opportunity to make a bad decision, the probability of making a bad decision decreases. This sounds a lot like the idea of fleeing temptation. Think how modesty on at least some level is designed to reduce the probability of bad decisions. Think of the other counsel from church leaders on how to avoid temptation. The principle is widely-used.

I've found that reducing opportunities for me to make bad choices has helped me considerably in choosing the right. For example, I know that I have a tendency to spend too much money--more than I have sometimes--but I know that if I have no access to money, I can't spend it. I've found that just leaving my credit and debit cards out of my wallet, I spend less money. It's that simple, but it works.

The principles behind internal controls can be applied to aid in preventing bad choices. Identifying the factors that contribute to bad choices and then reducing them with rules or controls works.