The Discovery and Reporting of Internal Control Deficiencies Prior to SOX-Mandated Audits

@article{AshbaughSkaife2007TheDA,
  title={The Discovery and Reporting of Internal Control Deficiencies Prior to SOX-Mandated Audits},
  author={H. Ashbaugh-Skaife and D. Collins and W. Kinney},
  journal={Journal of Accounting and Economics},
  year={2007},
  volume={44},
  pages={166-192}
}
  • H. Ashbaugh-Skaife, D. Collins, W. Kinney
  • Published 2007
  • Business
  • Journal of Accounting and Economics
  • 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 to internal control failure risks and managements' incentives to discover and report internal control deficiencies (ICDs). We find that firms making pre-SOX 404 ICD disclosures typically have more complex operations, recent changes in organization structure, more accounting risk exposure, fewer resources to… CONTINUE READING
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