search query: @indexterm INTERNAL CONTROL / total: 207
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| Author: | Doyle, J. Ge, W. McVay, S. |
| Title: | Determinants of weaknesses in internal control over financial reporting |
| Journal: | Journal of Accounting & Economics
2007 : SEP, VOL. 44: 1-2 p. 193-223 |
| Index terms: | internal control financial reporting disclosure auditors accounting standards |
| Language: | eng |
| Abstract: | The passage of the Sarbanes-Oxley Act in 2002 necessitated that all SEC registrants publicly disclosed material weaknesses in internal control over financial reporting. In this paper, the determinants of these material weaknesses are examined. 779 firms that disclose material weaknesses are investigated, and the results reveal that these firms tend to be 1. smaller, 2. younger, 3. financially weaker, 4. more complex, 5. growing rapidly or 6. undergoing restructuring. The determinants seem to vary based on the specific reason for the material weakness, which is consistent with each firm facing their own internal control challenges. |
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