The implications of ineffective internal control and SOX 404 reporting for financial analysts

Clinton, Sarah B.; Pinello, Arianna S.; Skaife, Hollis Ashbaugh

doi:10.1016/j.jaccpubpol.2014.04.005

Cited by 56 publications

(23 citation statements)

References 44 publications

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“…Li, Park e Wynn (2018) observaram que os agentes podem selecionar as DCI que serão reportadas, considerando o seu potencial efeito sobre o comportamento dos investidores, o que funcionaria como um incentivo para selecionar e gerenciar a divulgação. No contexto americano, com a vigência da Lei Sarbanes-Oxley (SOX) de 2002, dadas as expectativas de transparência quanto à estrutura de controles internos e o sistema contábil, as empresas de capital aberto passaram a fornecer aos seus acionistas um relatório sobre as deficiências identificadas no controle interno para fins de avaliação e tomada de decisão (Hammersley et al, 2008;Clinton et al, 2014;Li et al, 2016 (CVM, 1999, p. 10), que determina que o auditor independente deve "elaborar e encaminhar à administração e ao Conselho Fiscal, relatório circunstanciado que contenha suas observações em relação aos controles internos […] descrevendo, ainda, as eventuais deficiências ou ineficácias identificadas no transcorrer dos trabalhos". Este relatório circunstanciado constava até 2014 no item 10.6.b do Formulário de Referência -"Comentários dos diretores" -"deficiências e recomendações sobre os controles internos presentes no relatório do auditor independente" (ICVM nº 480, 2009).…”

Section: Teoria De Agência E O Papel Da Estrutura De Controles Internosunclassified

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Red flags de auditoria e divulgação das deficiências de controles internos nas empresas do IBRX 100

Brandão

Ballarini

Marques

et al. 2021

R. Contemp. Contab.

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Este estudo analisou o efeito das Red Flags de Auditoria (RFA) sobre a divulgação de Deficiências de Controles Internos (DCI) das empresas participantes do Índice Brasil 100 da B3, no período de 2010 a 2018. A pesquisa, de natureza descritiva, documental e com abordagem quantitativa, utilizou-se da análise de conteúdo, testes de diferenças entre as médias/medianas/proporções e análise de regressão, logística e de Poisson para a análise dos dados. Os resultados evidenciaram que as categorias de DCI mais divulgadas foram: Políticas Contábeis; Falhas Tecnológicas; e Contas Específicas. As RFA relacionadas às vendas, contas a receber e depreciação, reduzem a probabilidade de divulgação de uma DCI, enquanto aquelas relacionadas à lucratividade e endividamento, aumentam. Os resultados reforçam o papel das RFA como sinalizadores de problemas nos controles internos das empresas, contribuindo para a avaliação de risco e redução da assimetria informacional para investidores, auditores, reguladores e demais usuários da informação contábil.

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Section: Teoria De Agência E O Papel Da Estrutura De Controles Internosunclassified

“…Assim, o desenvolvimento desta pesquisa se justifica por diversos motivos: o primeiro deles é pela relevância da divulgação das DCI para a redução da assimetria informacional (Clinton, Pinello & Skaife, 2014). Segundo, porque a redução da assimetria melhora a avaliação de risco e precificação dos ativos pelos usuários externos (Hammersley et al, 2008).…”

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Red flags de auditoria e divulgação das deficiências de controles internos nas empresas do IBRX 100

Brandão

Ballarini

Marques

et al. 2021

R. Contemp. Contab.

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“…Organising a good internal control system is essential for enhancing the operations to achieve organisational conduction goals, both in contexts of efficiency and effectiveness, including Business and Economic Research ISSN 2162-4860 2021 constructing the reliability of the financial report. Furthermore, internal control includes the following laws and related rules and regulations to prevent fraud or resources misuse, which will reduce the possible mistakes from all operational activities (Clinton, Pinello, and Skaife, 2014). It consists of 5 elements as follows: "(1) Control Environment (2) Risk Assessment (3) Control Activities (4) Information and Communication and (5) Monitoring" as shown in Figure 1.…”

Section: Internal Control Conceptmentioning

confidence: 99%

The Interaction Effect of Personality Factor on Capability and Competence Requirement

Mansour

Ahmi

Popoola

2021

BER

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The auditing and accounting profession recently faced many challenges following fraudulent practices among the Jordanian public sector. The continuation of such fraudulent activities in the public sector impedes national economic developments and growth. This study's main objective is to have a practical and effective way of reducing the incidences of fraud in the Jordanian public sector. Specifically, this research explores the moderating role of neuroticism on knowledge requirements and fraud risk assessment performance in the Jordanian public sector. Adopting a survey method, the respondents of this study are forensic accountants and auditors in the Jordanian public sector. The research findings will contribute to the existing literature on forensic accountants, auditors, knowledge capability requirement, and neuroticism as a personality factor and fraud risk assessment performance of regulators regarding prevention and detection of fraud in the Jordanian public sector work environment.

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“…Sarbanes Oxley Act (SOX) of 2002 Section 404 required the management of public companies to assess the effectiveness of their internal control systems (Schneider, 2008). SOX 404 has expanded the internal auditor roles in serving audit committees and top management (Schneider, 2008;Clinton, Pinello and Skaife, 2014). Internal auditors are responsible to make a report for the audit committee and top management (Gramling and Schneider, 2018).…”

Section: Type Of Icd: Pervasive Vs Processspecificmentioning

confidence: 99%

The Type of Control Deficiency, Internal Audit Function Relationship and Internal Auditor’S Evaluation: an Experimental Study

Fadhila

Islami

2020

JAB

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This study aims to examine whether the type of internal control deficiency and the two parties that have a relationship with internal audit function influence the internal control evaluation by internal auditors. This study was conducted a behavioral experiment methodology in 2x2 between-subjects factorial design, and internal auditor as a participant. This study proved that there is an influence between the type of deficiency and the internal auditor's evaluation. In contrast, this study could not prove the effect of the internal audit function relationship toward auditor's evaluation of process-specific deficiency. This study has a great implication on internal control over financial reporting) in every part of the company. The limitation of this study is the findings are not generalizable beyond the internal control scenario depicted in the case materials. This study encourages future research to examine the usefulness of the role of the external auditor, and other parties charged with corporate governance, in mitigating any bias from this study.

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The implications of ineffective internal control and SOX 404 reporting for financial analysts

Cited by 56 publications

References 44 publications

Red flags de auditoria e divulgação das deficiências de controles internos nas empresas do IBRX 100

Red flags de auditoria e divulgação das deficiências de controles internos nas empresas do IBRX 100

The Interaction Effect of Personality Factor on Capability and Competence Requirement

The Type of Control Deficiency, Internal Audit Function Relationship and Internal Auditor’S Evaluation: an Experimental Study

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