The ultimate objective of financial reporting is to provide transparent financial statements and disclosures that meet the informational needs of investors and other users of financial statements. One of the primary goals of the Sarbanes-Oxley Act (USHR 2002) is to provide more reliable...

This paper examines whether the passage of the Sarbanes-Oxley Act (thereafter, SOX) curbs firms' earnings management behavior through shifting core expenses to special items. The passage of SOX could be an effective deterrent to misclassification activities as it aims to prevent accounting fraud...

We examine the relation between low quality internal controls and audit fee premiums. Using a novel dataset of audit hours and audit fees we find, consistent with the audit risk model, that auditors increase their effort (hours) due to low internal control quality. We find that auditors also...

This paper studies the influence of conditional conservatism on the auditor resignations, and more importantly, the impact of corporate governance on this relationship. The existing literature has provided evidence on the existence and pervasiveness of accounting conservatism, such as...

Purpose – To investigate the recommendations of the Blue Ribbon Committee (BRC) and the requirements of the Sarbanes‐Oxley Act (SOX) on audit committee alignment.Design/methodology/approach – Using a unique set of hand collected data on audit committees for a sample of 129 firms during...

We examine whether the strength of internal control over financial reporting (internal control) reduces the expropriation of resources from the firm by managers and controlling shareholders. Although we have ample evidence from prior literature that internal controls reduce errors in financial...

We show that a mid-2000s increase in US extraterritorial enforcement of the Foreign Corrupt Practices Act (FCPA), characterized by greater international regulatory cooperation and more frequent use of the FCPA's accounting provisions, has a significant deterrent effect on foreign direct...

This study analyzes business and non-business students' perceptions of the impact and importance of the Sarbanes Oxley Act of 2002 (SOX). A survey containing 18 SOX-related items and 8 demographic items was distributed to upper division undergraduate students in business and sociology and...

The paper analyzes the transposition into Italian law Directive 2006/43/EC; in particular the establishment of the Committee for Internal Control and the legal audit, governed by Article 41 of the Directive

Proposals for increased transparency and disclosure within audit reports are consistently met with conflict. Some suggest that auditor disclosures increase liability exposure for auditors, and should be the responsibility of management. Others suggest that such disclosures are beneficial to the...