...Eldar M. Maksymov SUMMARY Audit guidance requires auditors to assess management's competence with respect to internal controls over financial reporting (ICFR) based on the recommendations of COSO's integrated framework. The omission bias theory suggests that after internal control failures...

...Dennis H. Caplan; Saurav K. Dutta; Alfred Zhu Liu SUMMARY This paper examines the effect of the quality of a firm's internal control over financial reporting (ICFR) on the quality of corporate M&A decisions. We use material weaknesses in internal control (ICMWs) from SOX 404 audits as a proxy...

... financial reporting processes and policies. Our study informs both internal control policymakers and accounting standards setters. Data Availability: All data are publicly available from sources identified in the study. We acknowledge helpful comments and suggestions from Jennifer R. Joe (editor...

...Kathleen A. Bentley-Goode; Nathan J. Newton; Anne M. Thompson SUMMARY This study examines whether a company's business strategy is an underlying determinant of the strength of its internal control over financial reporting (ICFR) and auditors' internal control reporting quality. Organizational...

... are consistent with the argument that management reporting on internal controls (Section 404(a)) may be a cost-effective alternative to internal control audits (Section 404(b)) for smaller U.S. public companies. Editor's note: Accepted by Marleen Willekens, under the Senior Editorship of W. Robert Knechel...

...Vishal Munsif; K Raghunandan; Dasaratha V. Rama SUMMARY Internal control reporting continues to be of significant interest to regulators and legislators, as evidenced by the internal control-related requirements of the Dodd-Frank Act (2010 ) and the JOBS Act (2012) to exempt smaller firms from...

... the PricewaterhouseCoopers INQuires program for financial support of this research. Editor's note: Accepted by Robert Knechel. December 2009 August 2011 2012 Sarbanes-Oxley Section 404 internal control material weakness remediation This paper investigates the remediation likelihood...

... in internal controls. Data Availability: Contact the author. I examine individual investors because they represent an important set of financial reporting users whose protection and advocacy is charged to oversight bodies like the Securities and Exchange Commission (SEC) and because international...

...Katrien Van de Poel; Ann Vanstraelen SUMMARY Internal control regulation remains the subject of an ongoing global debate among academics, regulators, and practitioners in terms of costs and effectiveness. This is reflected by different internal control regulations in different countries...