Control Self-Assessment and Costs of Compliance with Sarbanes-Oxley Section 404
| Autor: | Gary F. Peters, Susan Parker, Lawrence J. Abbott, Theresa J. Presley |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
050208 finance
business.industry education 05 social sciences Control (management) 050201 accounting Audit risk Control self-assessment Compliance (psychology) Internal audit Section (archaeology) Accounting 0502 economics and business Medicine Operations management Business and International Management business health care economics and organizations |
| Zdroj: | Journal of Management Accounting Research. 31:5-24 |
| ISSN: | 1558-8033 1049-2127 |
| DOI: | 10.2308/jmar-52399 |
| Popis: | Control self-assessment (CSA) represents the practice of making operational-level managers responsible for internal control monitoring. We investigate the association between the use of CSA and certain costs incurred in maintaining internal control systems and complying with regulatory requirements. We find a negative association between CSA and external audit fees paid for the audit of internal control over financial reporting. Moreover, we find an incremental fee reduction resulting from the interaction between CSA and Section 404 assistance provided to the external auditor by the internal auditor. Additionally, we find a negative association between the use of CSA and some costs of the internal audit's own evaluation of operational and financial controls for managerial purposes. In sum, our study suggests that CSA can lessen at least some internal control costs while reducing control risk as proxied by external costs of internal control compliance. We discuss implications for broader management control systems. |
| Databáze: | OpenAIRE |
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