Research on Comprehensive Valuation of Internal Control Quality of Listed Company Based on The TOPSIS Method

2013 ◽  
Vol 7 (2) ◽  
pp. 199-206
Author(s):  
Zhongyun Xiao
Keyword(s):  
Internal Control ◽  
Listed Company ◽  
Topsis Method ◽  
Control Quality

The Effect of SOX Internal Control Deficiencies and Their Remediation on Accrual Quality

2008 ◽  
Vol 83 (1) ◽  
pp. 217-250 ◽  
Author(s):  
Hollis Ashbaugh-Skaife ◽  
Daniel W. Collins ◽  
William R. Kinney ◽  
Ryan LaFond
Keyword(s):  
Internal Control ◽  
Strong Evidence ◽  
Control Problems ◽  
Cross Sectional ◽  
Accrual Quality ◽  
Control Quality ◽  
Internal Control Weaknesses ◽  
Abnormal Accruals ◽  
Internal Control Deficiencies

This paper investigates the effect of internal control deficiencies and their remediation on accrual quality. We first document that firms reporting internal control deficiencies have lower quality accruals as measured by accrual noise and absolute abnormal accruals relative to firms not reporting internal control problems. Second, we find that firms that report internal control deficiencies have significantly larger positive and larger negative abnormal accruals relative to control firms. This finding suggests internal control weaknesses are more likely to lead to unintentional errors that add noise to accruals than intentional misstatements that bias earnings upward. Third, we document that firms whose auditors confirm remediation of previously reported internal control deficiencies exhibit an increase in accrual quality relative to firms that do not remediate their control problems. Finally, we find firms that receive different internal control audit opinions in successive years exhibit changes in accrual quality consistent with changes in internal control quality. Collectively, our cross-sectional and intertemporal change tests provide strong evidence that the quality of internal control affects the quality of accruals.

scholarly journals The Effects of Air Pollution on Firms’ Internal Control Quality: Evidence from China

2019 ◽  
Vol 11 (18) ◽  
pp. 5068 ◽  
Author(s):  
Siyi Liu ◽  
Daoguang Yang ◽  
Nian Liu ◽  
Xin Liu
Keyword(s):  
Air Pollution ◽  
Internal Control ◽  
Firm Value ◽  
Vital Role ◽  
New Era ◽  
Control Quality ◽  
Demographic Traits ◽  
The Board Of Directors ◽  
Institutional Costs

Research on the consequences of air pollution has tended to focus on the macro and environmental effects on human health, often ignoring micro effects. In this paper, we empirically investigate the micro-institutional costs of air pollution, and our results show that in China, firms’ internal control quality is significantly and negatively associated with the severity of air pollution in its home city and that the most significant effects of air pollutants are those of PM2.5 and SO2, confirming that air pollution incurs micro-institutional costs. We find that this effect varies depending on factors related to the environment, ownership structure, the demographic traits of the board of directors’ chairman, and employees. Further analysis indicates that air pollution can degrade the quality of accounting information, provoke agency problems, and lower firm value. This study reveals the micro-institutional costs of air pollution and identifies the mechanisms by which air pollution affects the quality of macroeconomic development. By so doing, this study enables China’s government and public to better its understanding of air pollution and recognize the value of the Blue-Sky Protection Campaign. This study also reinforces the importance of the transition toward a new economic mode based on “high-quality development,” which will play a vital role in China’s new era.

scholarly journals Product-market competition, internal control quality and audit opinions. Evidence from Chinese listed firms

2020 ◽  
Vol 23 (1) ◽  
pp. 102-112
Author(s):  
Ling Zhang ◽  
Wen Chen ◽  
WUN HONG SU
Keyword(s):  
Internal Control ◽  
Market Competition ◽  
Product Market ◽  
Product Market Competition ◽  
Certified Public Accountant ◽  
Listed Firms ◽  
Control Quality ◽  
Audit Opinions ◽  
Public Accountant

Sobre la base de los datos de las empresas que cotizan en los mercados bursátiles A de Shangai y Shenzhen entre 2007 y 2015, este estudio examina las relaciones entre la calidad del control interno, la competencia en el mercado de productos y las opiniones de auditoría. Los resultados empíricos revelan que (1) cuanto mejor sea la calidad del control interno de las empresas que cotizan en bolsa, más probable es que un contador público certificado emita una opinión sin modificaciones; (2) la competencia en el mercado de productos se asocia positivamente con las opiniones sin modificaciones; (3) la competencia en el mercado de productos debilita la relación positiva entre la calidad del control interno de las empresas que cotizan en bolsa y la probabilidad de que un contador público certificado emita una opinión sin modificaciones; y (4) el impacto significativo de la competencia en el mercado de productos sobre la relación entre el control interno de la calidad y las opiniones sin modificaciones sólo existe en las industrias no monopolísticas. Based on data on listed firms in the Shanghai and Shenzhen A-share stock markets from 2007 to 2015, this study examines the relations among the quality of internal control, product-market competition and audit opinions. The empirical results reveal that (1) the better the quality of the internal control of listed firms is, the more likely a certified public accountant will be to issue a unmodified opinion; (2) the product-market competition is positively associated with unmodified opinions; (3) the product-market competition weakens the positive relation between the quality of the internal control of listed firms and the likelihood that a unmodified opinion will be issued by a certified public accountant; and (4) the significant impact of product-market competition on the relation between internal control quality and unmodified opinions exists only in non-monopoly industries.

Going Too Far is as Bad as not Going Far enough: An Inverted U-shaped Relationship between Internal Control and Operational Efficiency

2021 ◽  
Author(s):  
Hanwen Chen ◽  
Ting Li ◽  
Chuancai Zhang
Keyword(s):  
Internal Control ◽  
Risk Taking ◽  
Optimal Level ◽  
Operational Efficiency ◽  
Internal Controls ◽  
Information Channel ◽  
Control Quality ◽  
Internal Management

In this study, we explore the inverted U-shaped association between internal control quality and firm operational efficiency. Although effective internal controls can facilitate and improve operational efficiency, excessive internal controls can negatively affect operational efficiency by (1) influencing management energy, attention, risk-taking, and innovation motivations; (2) hindering employees' creativity, enthusiasm, and trust. Our findings support the inverted U-shaped association. We further explore and prove the two channels through which internal controls affect firm operational efficiency: the "information channel" (the quality of internal management reports), and the "application channel" (the enforcement of internal controls). Additionally, we show that the inverted U-shaped association only exists in non-state-owned firms. We do not find significant association between internal control quality and operational efficiency in state-owned firms. Overall, this study suggests that firms should not only establish an optimal level of internal controls, but also enforce the internal controls effectively to achieve their intended goals.

Pengaruh Kualitas Sumber Daya Manusia, Pemanfaatan Teknologi Informasi, Dan Sistem Pengendalian Intern Terhadap Ketepatwaktuan Pelaporan Keuangan Pemerintah Desa

2018 ◽  
Vol 26 (2) ◽  
pp. 131-143
Author(s):  
Marlinawati Marlinawati ◽  
Dewi Kusuma Wardani
Keyword(s):  
Information Technology ◽  
Control System ◽  
Human Resources ◽  
Financial Reporting ◽  
Internal Control ◽  
Positive Influence ◽  
Internal Control System ◽  
Speed Up ◽  
Village Government

The purpose of this research is to know the influence between the Quality of Human Resources, Utilization of Information Technology and Internal Control System Against Timeliness of Village Government Financial Reporting at Gunungkidul Regency. This research is causative research. The population is the village government in Gunungkidul Regency, especially in Gedangsari subdistrict. Criteria of respondents in the study were to village and village apparatus. We use questionnaire to collect data. We use multiple regression with SPSS program version 16.0 to analyze data. We find that quality of human resources and internal control system have a positive influence on the timeliness of village government financial reporting. On the other hand, utilization of information technology does not influence the timeliness of village government financial reporting. These imply that the quality of human resources and internal control system can speed up the preparation of village government financial reporting.

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