دانلود رایگان مقاله انگلیسی کنترل داخلی در تحقیقات حسابداری - الزویر 2018

INTRODUCTION

Research exploring the determinants and economic consequences of internal control (IC) quality has gained momentum in recent years. The purpose of our paper is to synthesize the accounting related literature on IC, identify areas of research on IC that are lacking, and discuss the implications of the review for policymakers. Our findings are also relevant for managers, investors, creditors and auditors. In order to do this, we extend prior reviews by focusing on US studies published from 2013 to 2016, and by reviewing studies conducted outside the US setting. In light of increasing global efforts to enhance IC, an updated literature review with an international perspective is warranted to inform the regulatory debate surrounding the enactment of disclosure and attestation rules to enhance the transparency and quality of IC of financial reporting and their relevance to stakeholders. Prior reviews on IC reporting subsequent to SOX sections 302 and 404 (hereafter, SOX 302 and SOX 404 respectively) are US dominated and focus on the literature up to 2012. Schneider, Gramling, Hermanson & Ye (2009) limit their review to US, large sample size studies during 2005 to mid-2009. Key insights are that weaker IC is associated with smaller, riskier, and more complex firms. Weaker IC is also associated with weaker board and audit committee independence and expertise, increased cost of finance, less accurate earnings forecasts and higher audit fees. They suggest further research on the association between IC quality and earnings quality and cost of equity given the mixed findings in reviewed studies. Kinney, Martin & Shephardson (2013) reflect on SOX and the production of IC audits using evidence from public and limited non-public archival data, analytical studies, and numerous personal experiences of audit practitioners. They are interested in understanding how the requirement for IC audits has changed the production of audits. The paper is a commentary rather than a literature review and calls for greater transparency and analysis of how control audits are conducted, and consideration of alternative means to provide IC effectiveness information to investors.

CONCLUSIONS AND FUTURE RESEARCH

We discuss the development of the empirical literature and provide suggestions for future research on IC quality and its influence on financial statement preparers and users. From a methodological perspective, our review suggests that the regulatory environment determines IC disclosures and thus the availability of reliable information to research this area. In the US, the enactment of SOX allows researchers to proxy for IC quality through the disclosure of IC deficiencies. Arguably, this is a robust and well-accepted indicator of IC quality and the availability of this measure has fostered research to better understand how IC affects stakeholders’ decision-making. Where other countries have adopted SOX-like regulation (e.g., Japan, South Korea) knowledge is also emerging on cross-country similarities and differences in the determinants and consequences of IC quality facilitating insights on how economic, political and social factors may be contributing to the differences. In settings where the disclosure of IC data is unregulated, researchers use content analysis to assess IC quality through the voluntary disclosures of IC information prepared either by management (e.g., financial statements) or auditors (audit report on the effectiveness of IC). Researchers also apply survey methodology among auditors or management in emerging economies where IC practices are less developed. The documentation, synthesis and evaluation of the IC accounting research is timely with our review offering three main insights. First, findings are mixed concerning the association between board characteristics (e.g., CEO duality, gender), ownership structure (e.g., family ownership), and IC quality, while empirical evidence concerning the effect of audit committee characteristics (financial expertise, number of meetings) on IC quality supports a positive and significant association.