Determinants of weaknesses in internal control over financial reporting

• 成果类型: Article; Proceedings Paper
• 署名作者: Doyle, Jeffrey; Ge, Weill; McVay, Sarah
• 署名单位: New York University; University of Washington; University of Washington Seattle; Utah System of Higher Education; Utah State University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2006.10.003
• 发表日期: 2007
• 关键词: materiality; INFORMATION; earnings; QUALITY; fees

摘要

We examine determinants of weaknesses in internal control for 779 firms disclosing material weaknesses from August 2002 to 2005. We find that these firms tend to be smaller, younger, financiallv weaker, more complex, growing rapidly, or undergoing restructuring. Firms with more serious entity-wide control problems are smaller, younger and weaker financially, while firms with less severe, account-specific problems are healthy financially but have complex, diversified, and rapidly chariging operations. Finally, we find that the determinants also vary based on the specific reason for the material weakness, consistent with each firm facing their own unique set of internal control challenges. (c) 2006 Elsevier B.V. All rights reserved.