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Rotter (1990) describes the external locus of control as: 'the degree to which persons expect that the reinforcement or outcome is a function of chance, luck, or fate, is under the control o f powerful others, or is simply unpredictable.'.
Internal Control Systems. Internal controls encompass a set of rules, policies, and. procedures an organization implements to provide reasonable. assurance th tthat: Ãª(a) its financial reports are reliable, Ãª(b) its operations are effective and efficient, and. Ãª(c) its activities comply with applicable laws and regulations. These represent the three main obj ectives of the internal control. system. The organization's board of directors, management, and other personnel are. responsible for the internal control. system.