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The Discovery and Reporting of Internal Control Deficiencies Prior to SOX-Mandated Audits
This paper uses firms' disclosures of internal control problems prior to audits mandated by Section 404 of the Sarbanes-Oxley Act (SOX) to investigate the economic factors that expose firms toExpand
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The Effect of SOX Internal Control Deficiencies and Their Remediation on Accrual Quality
This paper investigates the effect of internal control deficiencies and their remediation on accrual quality. We first document that firms reporting internal control deficiencies have lower qualityExpand
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The Effect of SOX Internal Control Deficiencies on Firm Risk and Cost of Equity
ABSTRACT The Sarbanes-Oxley Act (SOX) mandates management evaluation and independent audits of internal control effectiveness. The mandate is costly to firms but may yield benefits through lowerExpand
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Auditor Independence, Non‐Audit Services, and Restatements: Was the U.S. Government Right?
Do fees for non‐audit services compromise auditor's independence and result in reduced quality of financial reporting? The Sarbanes‐Oxley Act of 2002 presumes that some fees do and bans theseExpand
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Characteristics of firms correcting previously reported quarterly earnings
Abstract This paper analyzes economic characteristics of firms that correct previously reported quarterly earnings. The basic findings are that, relative to their industry, the sample (correcting)Expand
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Earnings Surprise “Materiality” as Measured by Stock Returns
Ranked earnings surprise portfolios formed from First Call files for 1992–97 are used to assess the annual earnings surprise magnitude for an individual firm sufficient to expect a “significantExpand
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Does Mandated Audit Communication Reduce Opportunistic Corrections to Manage Earnings to Forecasts
This paper reports two experiments in which Big 5 audit managers estimate reported (audited) earnings conditional on analysts' consensus forecast, auditing standards, and auditor discovery of aExpand
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The Effects of Domain Experience and Task Presentation Format on Accountants' Information Relevance Assurance
Information relevance advisory services offer growth opportunities for accountants in CPA firms, but we know little about the types of knowledge needed to provide high-quality advice. In a two-stageExpand
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Research Opportunities in Internal Control Quality and Quality Assurance
INTRODUCTION In a sense, I began developing this presentation in 1993 when I first taught auditing and internal control for M.B.A.s at INSEAD (European Institute of Administration). In designing theExpand
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