.... The study finds bystander firms reporting an accounting loss in the previous year are more susceptible to contagion effects than bystander firms reporting a profit. Importantly, the study shows internal control quality provides protection from contagion effects, particularly for loss firms. The findings...

...Hambisa Belina; K. Raghunandan; Dasaratha V. Rama SUMMARY Prior research shows that many of the companies that disclose material weaknesses in internal control (MWs) do not disclose such weaknesses in earlier quarterly 10-Q filings for the same year—i.e., the year-end MW disclosures are “surprise...

... control issues that involve year-end adjustments and/or documentation, procedure, or policy issues. “Early-warning” MWs are more likely due to systemic internal control problems, like segregation of duties. Our findings suggest a role for auditors and substantive audit tests in the disclosure of certain...

... 10 2019 2020 internal control segregation of duties fraud materiality auditors I need you to start at Herringbone tomorrow was all you could remember from the phone call. When you began working for the audit firm Brown and Company a year ago, you knew there would...

... a new business ecosystem. permissionless blockchain permissioned blockchain internal control auditing accounting Moreover, blockchain could fundamentally change the auditing process. As a complete record of transactions is stored on a blockchain, auditors will no longer need to request...

... internal control material weakness material inadequacy Regulation of BDs has historically been governed by the Securities Exchange Act of 1934 ( U.S. Congress 1934 ) and the Securities Acts Amendments of 1975 ( U.S. Congress 1975 ). ⁴ ( Table 1 provides a summary timeline...

...Thomas R. Weirich; Lori Olsen SUMMARY With the passage of the Sarbanes-Oxley Act, there has been much discussion and analysis of Section 404 dealing with management's and the external auditor's evaluation of internal controls over financial reporting (ICFR). However, Section 302 of the Act...

... is ineffective internal controls. This paper describes the current regulatory environment for auditors of BDs, focusing on Congressional actions taken, as well as guidance for auditors in preparing their reports on clients' internal controls and compliance with regulations as required by the SEC. We describe...

...Dana R. Hermanson; Jason L. Smith; Nathaniel M. Stephens SUMMARY Based on survey responses from approximately 500 Chief Audit Executives (CAEs) and other internal auditors, this article provides an insider's view of the perceived strength of organizations' internal controls (i.e., internal control...