... and Schlusche 2021 ; Nicoletti 2018 ; Costello, Granja, and Weber 2019 ; Granja and Leuz 2017 ). Thus, regulator strictness has important implications for multiple aspects of financial system stability. The assessment of internal controls over financial reporting (ICFR) is a critical component of both...

... under U.S. jurisdiction with fundamental characteristics that make it more difficult to maintain effective internal controls invest less in high-corruption-risk countries after the FCPA enforcement increase, suggesting regulatory compliance costs play a role in deterring investment. Consistent...

... using the setting of data breaches. While controlling for firm-specific time-varying unobservable characteristics, I find that peer data breaches are associated with a reduction in future internal control material weaknesses for non-breached firms. The association is robust...

...Cassandra Estep ABSTRACT I investigate how auditors integrate information technology (IT) specialist input into internal control over financial reporting (ICFR) issue classifications. Given the ill-structured nature of evaluating ICFR issues and the impact of these issues on audit quality...

... of such incentives. Smaller firms were granted several reprieves and eventually exempted from the internal control audit requirements of SOX Section 404, which many consider the most costly and onerous aspect of SOX. Using a difference-in-differences design, we show that relative to control firms, firms just below...

...Pingyang Gao; Gaoqing Zhang ABSTRACT We study firms' investment in internal controls to reduce accounting manipulation. We first show that peer managers' manipulation decisions are strategic complements: one manager manipulates more if he believes that reports of peer firms are more likely...

... by Elaine G. Mauldin, under the Senior Editorship of Mark L. DeFond. August 2014 April 2017 2018 accounting complexity XBRL disclosure quality financial reporting quality misstatements internal controls audit fees accruals Standard setters and regulators recognize...

...Nancy L. Harp; Beau Grant Barnes ABSTRACT This study examines internal control weaknesses (ICWs) reported under Sarbanes-Oxley (SOX) Section 302 in the context of mergers and acquisitions. We predict that problems in an acquirer's internal control environment have adverse operational implications...

...Lisa De Simone; Matthew S. Ege; Bridget Stomberg ABSTRACT We propose that auditor-provided tax services (tax NAS) improve internal control quality by accelerating audit firm awareness of transactions material to the financial statements. Using data from 2004 to 2012, we find robust evidence...

... that previously claimed to have effective internal controls. We appreciate helpful comments and suggestions from Vernon J. Richardson (editor), the anonymous reviewers, Jean Bedard, Daniel Cohen, Asher Curtis, Reuven Lehavy, David Papandria, Troy Pollard, Srini Sankaraguruswamy, Steve Stubben, Mike...