内部控制缺陷因素对财务报表的影响外文翻译.docVIP

外文翻译 原文 Determinants of weaknesses in internal control over financial reporting Material Source:/science?_ob=ArticleURL_udi=B6V87-4MNJ2RM-1_user=10_coverDate=09%2F30%2F2007_rdoc=1_fmt=high_orig=search_origin=search_sort=d_docanchor=view=c_searchStrId=1600097716_rerunOrigin=scholar.google_acct=C000050221_version=1_urlVersion=0_userid=10md5=d55128be39e1b02567c85c975c4d301fsearchtype=a Author: Jeffrey Doyle Sarah Mcvay In this paper we examine the determinants of material weaknesses in internal control over financial reporting. A material weakness in internal control is defined as “a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected” (PCAOB, 2004).We use a sample of companies that disclosed material weaknesses in internal control over financial reporting under Sections 302 and 404 of the Sarbanes-Oxley Act of 2002 from August 2002 to August 2005.2 Under Section 302, SEC registrants’ executives are required to certify that they have evaluated the effectiveness of their internal controls over financial reporting. If management identifies a material weakness in their controls, they are precluded from reporting that the controls are effective and must disclose the identified material weakness (SEC, 2002 and SEC, 2004). Section 404 requires that each annual report include an assessment by management of the effectiveness of the internal control structure and procedures of the issuer for financial reporting that is attested to by the firm’s public accountants. We investigate whether material weaknesses in internal control are associated with 1) firm size, measured by market value of equity; 2) firm age, measured by the number of years the firm has CRSP data; 3) financial health, measured by an aggregate loss indicator variable and a proxy for the likelihood of bankruptcy based on