Purpose – To provide a framework of accounting policy choice associated with the timing of adoption of the UK Statement of Standard Accounting Practice (SSAP) No. 20, “Foreign Currency Translation”. The conceptual framework describes the accounting policy choices that firms face in a...

Purpose – Concern has been raised over the dubious utility of internal control (IC) reports that contain vague disclosures of unclear meaning or that contain sweeping, albeit, and confusing statements. The purpose of this paper is to examine, from a Malaysian perspective, the internal audit...

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....

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...

Purpose – The purpose of this paper is to examine whether external auditor traits influenced the reporting of internal control deficiencies (ICDs) prior to SOX-mandated audits, holding constant the existence of a control weakness. Design/methodology/approach – Data are collected from...