Publication Type
Journal Article
Version
publishedVersion
Publication Date
6-2009
Abstract
The Sarbanes-Oxley Act (SOX) was passed in 2002 in response to a series ofaccounting improprieties at well-known companies such as Enron and WorldCom.One important aspect of SOX is the internal control requirements. SOX section302 requires that management evaluate the effectiveness of disclosure and controlprocedures, report results of the evaluation, and indicate any “significant changes”in internal controls since the last 10-K or 10-Q report (Securities and ExchangeCommission [SEC] 2002). In addition, SOX section 404 requires that manage-ment’s assessment of the effectiveness of internal control over financial reportingand auditors’ attestation on management’s assessment be included in firms’ 10-Kreports (SEC 2003a). The heightened attention to internal control can enhance thereliability of financial statements by helping companies to identify internal controldeficiencies and remediate these deficiencies in a timely manner (Charles RiverAssociates 2005).
Keywords
Sarbanes-Oxley Act (SOX), Accounting improprieties, Enron, Financial reporting
Discipline
Accounting | Business Law, Public Responsibility, and Ethics | Corporate Finance
Research Areas
Corporate Governance, Auditing and Risk Management
Publication
Contemporary Accounting Research
Volume
26
Issue
2
First Page
549
Last Page
579
ISSN
0823-9150
Identifier
10.1506/car.26.2.9
Publisher
Wiley
Citation
GOH, Beng Wee.
Audit committees, boards of directors, and remediation of material weaknesses in internal control. (2009). Contemporary Accounting Research. 26, (2), 549-579.
Available at: https://ink.library.smu.edu.sg/soa_research/127
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Included in
Accounting Commons, Business Law, Public Responsibility, and Ethics Commons, Corporate Finance Commons