Innate and discretionary accruals quality and corporate governance

This paper extends previous research on the association between corporate governance mechanisms and accruals quality. We derive measures of the discretionary and innate components of accruals quality and regress them against corporate governance characteristics. For discretionary accruals, we find use of a Big 4 audit firm and a larger audit committee as the primary governance mechanisms associated with higher accruals quality. For innate accruals quality, we find that higher quality is associated with an independent board of directors, a larger, more independent and more active audit committee, and use of a Big 4 audit firm. Our findings suggest a stronger relation between sound governance mechanisms and innate accruals quality than discretionary accruals quality.Full Tex

Investor Skepticism v. Investor Confidence: Why the New Research Analyst Reforms Will Harm Investors

Part I of this Article provides an overview of research analysts and their basic functions, including a discussion of sell-side analysts\u27 role in the market\u27s recent boom and bust. Part II examines the conflicts of interest that have plagued sell-side research, and Part III reviews the Regulatory Actions that are meant to address these conflicts. In Part IV, the author will make the case for encouraging, rather than lessening, investor skepticism in sell-side research and will explain why the Regulatory Actions are not likely to improve the performance of sell-side analysts. Finally, Part V will offer a simpler proposal to address the sell-side analyst issue. While there may not be a solution to the maybe not problem, the information gap between institutional investors and retail investors regarding the weaknesses of sell-side research can be eliminated, which would allow retail investors to benefit from the value of sell-side research while also granting them the opportunity to properly protect themselves from its weaknesses. Akin to the Surgeon General\u27s warning for cigarette manufacturers, this Article proposes that sell-side analysts and their firms be required to prominently include, with all research, a short and clear warning from the United States Securities and Exchange Commission ( SEC ), regarding the historical weaknesses of sell-side research

CORPORATE GOVERNANCE AND CREATIVE ACCOUNTING: TWO CONCEPTS STRONGLY CONNECTED? SOME INTERSTING INSIGHTS HIGHLIGHTED BY CONSTRUCTING THE INTERNAL HISTORY OF A LITERATURE

Corporate governance is concerned with the relationships between a business’smanagement and its board of directors, shareholders and lenders and its other stakeholders such asemployees, customers, suppliers, and the community in which activates. The connection betweenthis topic and creative accounting was debated in the literature since the latter occurrence isrelated to the weakness of the first. Our study offers interesting insights into this strong connectionby examining the relevant ideas developed previously in the literature with the scope ofunderstanding, reinterpreting and rediscovering from interesting points of view this association inour search for responsibility in the economic environment. By conducting this study we wanted toreinforce the role of literature analyst as an interpreter who contributes meaning to the presentstate of the art.corporate governance, creative accounting, Papineau`s hierarchy

Audit report on the City of Lewis, Iowa for the year ended June 30, 2012

Audit report on the City of Lewis, Iowa for the year ended June 30, 201

Essays on internal control and external auditing in the context of financial reporting quality

fi=vertaisarvioitu|en=peerReviewed

Essays on internal control and external auditing in the context of financial reporting quality

fi=vertaisarvioitu|en=peerReviewed

The internal and external environment analysis of Romanian naval industry with SWOT model

SWOT analysis is an effective method used for strategic planning to identify potential, priorities and creating a common vision of achieving the development strategy for a company. This should answer the question “Where are we?†involving the analysis of the internal and external environment generally and specifically. It used to evaluate the company environment factors. Only by taking into consideration the components of general environment : economic environment, social environment, political environment, legislation and pressure groups, a company will be able to adopt the particular way of action, which will assure its performance and advantages on present and potential competitors.opportunities, strengths, threats, weaknesses

The Consequences of Information Technology Control Weaknesses on Management Information Systems: The Case of Sarbanes-Oxley Internal Reports

In this paper, we investigate the association between the strength of information technology controls over management information systems and the subsequent forecasting ability of the information produced by those systems. The Sarbanes-Oxley Act of 2002 highlights the importance of information system controls by requiring management and auditors to report on the effectiveness of internal controls over the financial reporting component of the firm’s management information systems. We hypothesize and find evidence that management forecasts are less accurate for firms with information technology material weaknesses in their financial reporting system than the forecasts for firms that do not have information technology material weaknesses. In addition, we find that this association appears to be driven by control weaknesses most directly related to data processing integrity. Our results support the contention that information technology controls, as a part of the management information system, affect the quality of the information produced by the system

Auditor independence, audit committee quality and internal control weaknesses

In this paper we investigate the relation between auditor independence, audit committee quality and the disclosure of internal control weaknesses. We begin with a sample of firms with internal control weaknesses and, based on industry, size, and performance, match these firms to a sample of control firms without internal control weaknesses. Our conditional logit analyses indicate that a relation exists between audit committee quality, auditor independence, and internal control weaknesses. Firms are more likely to be identified with an internal control weakness, if their audit committees have less financial expertise or, more specifically, have less accounting financial expertise and non-accounting financial expertise. They are also more likely to be identified with an internal control weakness, if their auditors are more independent. In addition, firms with recent auditor changes are more likely to have internal control weaknesses.internal control weakness; audit committee financial expertise; auditor independence