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Record W2926691730 · doi:10.5430/afr.v8n2p121

Internal Control Weakness: A Literature Review

2019· review· en· W2926691730 on OpenAlexvenueno aff
Yu Lu, Diandian Ma

Bibliographic record

VenueAccounting and Finance Research · 2019
Typereview
Languageen
FieldBusiness, Management and Accounting
TopicAuditing, Earnings Management, Governance
Canadian institutionsnot available
Fundersnot available
KeywordsAccountingCorporate governanceInsiderWeaknessBusinessControl (management)DebtAuditQuality (philosophy)Capital marketAudit committeeEquity (law)EconomicsFinance

Abstract

fetched live from OpenAlex

The purpose of this essay is to review empirical literature on internal control weakness over the past seven years. I use an analysis framework consisting of determinants (corporate governance and other affecting factors) and economic consequences (accounting information quality, market reaction, cost of equity, debt contracting) of weakness disclosure and its remediation. Basic findings of prior studies agree that corporate governance and firm characteristics influence the presence of control problems and their remediation. In turn, the effectiveness of internal control impacts the quality of financing reporting, auditor reaction (auditing fees and audit delays), insider trading and leads to capital market consequences (the weakness disclosures affect debt contracting). More internal control studies combine with capital market and provide evidence that SOX are not always effective. Overall, these findings contribute to profession by suggesting that the disclosures of internal control deficiencies generally convey incremental information on the quality of financial reporting to investors. This review integrates and assesses current internal control weakness research and offers some suggestions for future study.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.005
metaresearch head score (Gemma)0.011
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesMetaresearch, Meta-epidemiology (narrow), Scholarly communication, Research integrity, Insufficient payload (model declined to judge)
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Other design · Consensus signal: none
GenreCandidate signal: Review · Consensus signal: Review
Teacher disagreement score0.812
Threshold uncertainty score1.000

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0050.011
Meta-epidemiology (narrow)0.0010.001
Meta-epidemiology (broad)0.0020.000
Bibliometrics0.0010.003
Science and technology studies0.0010.000
Scholarly communication0.0020.002
Open science0.0010.001
Research integrity0.0000.003
Insufficient payload (model declined to judge)0.0000.003

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.039
GPT teacher head0.337
Teacher spread0.298 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

Study designOther design
Domainnot available
GenreReview

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations4
Published2019
Admission routes1
Has abstractyes

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