论文信息 - Factors related to internal control disclosure: A discussion of Ashbaugh, Collins, and Kinney (2007) and Doyle, Ge, and McVay (2007)

Factors related to internal control disclosure: A discussion of Ashbaugh, Collins, and Kinney (2007) and Doyle, Ge, and McVay (2007)

Abstract Ashbaugh, Collins, and Kinney, henceforth ACK, and Doyle, Ge, and McVay, henceforth DGM, provide the first evidence relating firm characteristics to internal control deficiencies (ICDs) reported under new disclosure requirements. Both studies document that control risk factors associated with organizational complexity and significant organizational change, as well as relative investment in internal control systems, are related to disclosure of internal control. ACK also test whether factors associated with incentives to discover and report ICDs affect disclosure of ICDs but this evidence is less compelling. I present alternative explanations and provide some descriptive evidence that is consistent with these alternative explanations.

Andrew J. Leone | A. Leone

[1] Scott A. Richardson,et al. Predicting Earnings Management: The Case of Earnings Restatements , 2002 .

[2] William R. Kinney,et al. The Discovery and Reporting of Internal Control Deficiencies Prior to SOX-Mandated Audits , 2007 .

[3] J. Heckman. Sample selection bias as a specification error , 1979 .

[4] Edward I. Altman,et al. FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCY , 1968 .

[5] William R. Kinney,et al. Characteristics of firms correcting previously reported quarterly earnings , 1989 .

[6] Tyler Shumway. Forecasting Bankruptcy More Accurately: A Simple Hazard Model , 1999 .

[7] Weili Ge,et al. Determinants of Weaknesses in Internal Control over Financial Reporting , 2006 .

[8] L. Brown,et al. Corporate Governance and Firm Valuation , 2006 .