We examine the joint effects of the reporting threshold (more than remote versus reasonably possible) and type of control deficiency (entity level versus account specific) described in the adverse report on internal controls on equity analysts' evaluation of the reliability of a company's future...

We develop and test a model that links internal control over financial reporting (ICOFR) disclosures to users' confidence in the standard audit report (SAR) on the financial statements. The model suggests that users' confidence in the SAR is determined by the consistency of the message conveyed...

This study provides insights on the effectiveness of the Sarbanes-Oxley Act (2002) in promoting high quality financial reporting and good corporate governance. We report the results of interviews conducted with 22 experienced directors from US firms. Our results indicate that SOX has had a...

The purpose of this study is to investigate the impact of the adoption of a business risk audit approach on internal control documentation and testing. Data were collected from senior auditors before and after a change to a new business risk approach to determine if auditors' preferred internal...