... data on individual IAF employees, we document that IAF experience, education, and size are associated with higher financial reporting quality. Specifically, we find that IAF competency is inversely associated with the propensity for material weaknesses and misstatements. We further document that firms...

... they are saliently disclosed and this effect is enhanced when the material weakness is disaggregated into its individual control deficiencies. We also find evidence of moderated mediation such that high salience of ICW disclosures has a positive indirect effect on investing judgments through management trust...

...Marsha B. Keune; Timothy M. Keune SUMMARY This study examines whether managers make voluntary changes in accounting principle in response to a material weakness (MW). We find that managers are more likely to report voluntary changes in the same year as and year following a MW disclosure, a result...

... likely to remediate material weaknesses, incremental to known determinants of material weaknesses. We also find that auditors' internal control reporting quality is lower among clients with greater prospector-like characteristics when measured using the timeliness of reported material weaknesses. Our...

.... Cohen. November 2015 January 2017 © 2017 American Accounting Association. All rights reserved. 2017 audit quality internal controls SOX 404(b) restatements material weakness We examine whether the effectiveness of Section 404(b) of the Sarbanes-Oxley Act (SOX, U.S...

... utilizing the cost-leadership “defender” strategy to receive both going concern and material weakness opinions. Our empirical evidence supports this prediction. Specifically, we find that, among a sample of financially troubled firms, prospectors are significantly more likely than defenders to receive...

...Emma-Riikka Myllymäki SUMMARY This study examines whether Sarbanes-Oxley (SOX) Section 404 material weakness (MW404) disclosures are predictive of future financial reporting quality. I find evidence that for companies with a history of MW404s, the likelihood of misstatements in financial...

...Jean C. Bedard; Rani Hoitash; Udi Hoitash; Kimberly Westermann SUMMARY This paper investigates remediation of Sarbanes-Oxley Section 404 material weaknesses (MWs). Prior research examines full remediation of all MWs or broad categories thereof. We build on these studies by investigating...