Abstract
Although the concept of internal control is as relevant to churches as it is to profit-seeking organizations, many authors have indicated that churches typically have weak systems of internal control. The implementation and maintenance of an adequate system of internal control is the responsibility of management, and pastors serve in a position similar to that of Chief Executive Officer. This study is a preliminary effort to determine what variables impact a pastor's ability to recognize strengths and weaknesses in the internal control system of a local church. A decisionmaking exercise was conducted in which pastors evaluated the internal control systems described in four cases. The findings show that the size of the church at which a pastor serves and denominational affiliation significantly impacted pastors' ratings of internal control scenarios, while years of experience as a pastor and business courses taken in college did not have a significant effect on the ratings.
Key Words: