Sarbanes-Oxley 404 material weaknesses and discretionary accruals

Epps, Ruth W.; Guthrie, Cynthia P.

doi:10.1016/j.accfor.2008.11.002

Cited by 19 publications

(8 citation statements)

References 16 publications

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“…To the extent that weak internal controls give top management greater ability to engage in opportunistic behavior (Epps & Guthrie, 2010), we should expect that boards with greater gender diversity will be less willing to tolerate weak internal controls for concern of financial reporting quality. Second, women are generally more risk averse than men (e.g., Barber & Odean, 2001).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Board Gender Diversity and Internal Control Weaknesses

Chen

Eshleman

Soileau

2016

Advances in Accounting

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Section: Hypothesis Developmentmentioning

confidence: 99%

Board Gender Diversity and Internal Control Weaknesses

Chen

Eshleman

Soileau

2016

Advances in Accounting

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“…In this context, requiring the auditor to blow the whistle on client transgressions conforms with growing international trends championing reporting to third parties (U4; U8; Epps and Guthrie, 2010;Nel, 2001;PwC, 2011b). For example, France, Malaysia, the USA and UK have legislation that addresses whistle-blowing (Nel, 2001;Brennan and Kelly, 2007;Riotto, 2008) while the European Community is currently exploring the possibility of broadening the scope of the auditor's reporting duty and currently requires auditors to report certain transgressions, mainly in a financial services setting (European Commission, 2010;European Commission, 2010a;CESR, 2007).…”

Section: 3: On the Road To Cognitive Legitimacymentioning

confidence: 87%

Whistle-blowing by external auditors: Seeking legitimacy for the South African Audit Profession?

Maroun

Solomon

2014

Accounting Forum

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Auditing is often cited as playing an important role in managing agency-related costs and, accordingly, being integral to the sound functioning of capital markets. There may, however, be more to the attest function than simply a technical rational practice. By virtue of relying heavily on claims to technical expertise, professionalism, prudential judgement and public confidence auditing is both a source of legitimacy for organisations while, paradoxically, dependent on claims to legitimacy for its own continued existence. From this perspective, recent regulatory developments purportedly enacted to increase arms length control over the profession may not only be about improving perceived audit quality and practice but also about ensuring continued faith in the well-established 'rituals' of the assurance function. A reporting duty imposed on South African external auditors, akin to whistle-blowing, is used as a case study to explore this perspective. In doing so, this paper contributes to the scant body of interpretive research on auditing simultaneously offering one of the first insights into auditing regulation form an African perspective.

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“…Effective Internal control can reduce the risks of unintentional procedures and estimation errors in accounting and financial reports, it also may reduce the inherent risks in the business operation, strategies and suppress earnings management (Chan et al 2005;Ruth et al 2010;Epps and Guthrie 2010), the attestation report of internal control disclosure especially companies who obtained reasonable assurance attestation report showed more pronounced inhibition effects (Wang and Hu 2011; Fang and Jin 2008�…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 96%

Internal Control Weakness Disclosure and Earnings Management

Guo

Liu

2015

Liss 2014

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The authority jointly issued that the central and local state-owned listed companies and the domestic and overseas listed companies should disclose the company's internal control report by the Board and the audit report of financial report internal control made by CPA when they disclose the annual report of 2012. Since then, internal Control information disclosure starts its mandatory era. Based on the realistic foundation, this article classifies the weakness into five categoriesseverity, auditability, detail, effectiveness and remediation. This research indicates that the internal control information disclosure becomes more complete and standardized in mandatory era; the relation between earnings management and internal control weakness is insignificant positive; the relation between earnings management and detail as well as remediation are insignificant; earnings management is negatively related with effectiveness, which suggests internal control may be helpful in reducing earnings management.

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Sarbanes-Oxley 404 material weaknesses and discretionary accruals

Cited by 19 publications

References 16 publications

Board Gender Diversity and Internal Control Weaknesses

Board Gender Diversity and Internal Control Weaknesses

Whistle-blowing by external auditors: Seeking legitimacy for the South African Audit Profession?

Internal Control Weakness Disclosure and Earnings Management

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