We examine the relation between internal control quality and the accuracy of management guidance. Consistent with managers in firms with ineffective internal controls relying on erroneous internal management reports when forming guidance, we document less accurate guidance among firms reporting...

This paper investigates internal control restatements, i.e., companies and their auditors restating Section 404 internal control (IC) opinions from clean to adverse, after announcing financial statement restatements. We compare IC restatement companies with both companies that issue adverse IC...

After restating their financial statements, companies may voluntarily restate their previously issued internal control (IC) reports for the financial statement (FS) misstatement periods, changing them from “effective” to “ineffective.” This paper examines the determinants and...