Purpose – This paper aims to report the results of a cross-national cultural experiment on auditors' belief revision when evaluating internal control. Design/methodology/approach – Hogarth and Einhorn's belief-adjustment model (BAM) and Hofstede's national culture are employed. Two...

Purpose – The purpose of this paper is to investigate whether the weaker focus on risk management and internal control within the Belgian corporate governance guidelines is associated with less developed risk management and internal control systems within Belgian companies, when compared to...

Purpose – The purpose of this paper is to examine investor reactions to material internal control weakness disclosures. In particular, the abnormal returns, the change in volatility, and the change in systematic risk are analyzed around auditors' material weakness reports....

Through the hereby study we set ourselves on an analysis over the internal control and the ways of implementation of it. The final purpose of our research is represented by the characteristics of the internal control system in the context of current accountancy regulations. The accomplishment of...

Purpose – The purpose of this paper is to test whether firms audited by the same Big 4 audit firm (Big 4 continuing clients) are more/less likely to report material weaknesses (systemic material weaknesses) in internal controls over a financial reporting than those audited by the same Non-Big...

Purpose – First, this paper aims to provide empirical evidence of the interaction between the components of an internal control system. Second, it seeks to integrate work from the field of strategy and that on the internal control system from the field of auditing. The purpose of this paper is...

Purpose – The purpose of this study is to investigate the compliance of US-traded foreign firms with Sarbanes-Oxley section 404 (SOX 404) by examining recent changes in their material internal control weakness (ICW) disclosures. This study also seeks to explore as a result of compliance,...

Purpose – The purpose of this paper is to examine the impact of internal control opinions on individuals' judgments about investments. Design/methodology/approach – The approach used is a behavioral experiment where risk assessments and judgments about investments are made for four internal...

The recent financial scandals put into question the traditional evaluation approach of financial quality. Now, the quality of financial information is tackled through audit process. The legislator interfered through the various laws reinforcing in this way internal control. In this paper, we...

The recent accounting scandals that have occurred in the USA have resulted in the issuance of the Sarbanes Oxley Act (SOX), with emphasis on Section 404 related to enhancing the companies' internal controls. This research study critically examines Section 404 requirements, surveying a sample of...