publication . Bachelor thesis . 2010

Internal control reporting and accounting quality : Insight "comply-or-explain" internal control regime

Cao Thi Thanh, Huyen; Cheung, Tina;
Open Access English
  • Published: 01 Jan 2010
  • Publisher: Umeå universitet, Handelshögskolan vid Umeå universitet
  • Country: Sweden
Abstract
Nowadays, there exist two reporting regimes, rules-based and principle-based (comply-or-explain). In the rules-based environment, researchers have studied the relationship between internal control quality and accounting quality. Prior studies have suggested that reports on internal control are an effective way for investors to evaluate the quality of the firm‟s internal control. By having a sound system of internal control, it creates reliance upon the firm‟s financial reporting. Therefore, the condition of internal control has direct connection to the investors‟ decision making.  In  U.S., where the corporate governance has been known to be typically rules-base...
Subjects
Medical Subject Headings: educationhealth care economics and organizations
free text keywords: corporate governance, internal control, internal control report, effectiveness statement, discretionary accruals, earnings management, ICRS, principle-based, rule-based, accounting scandal, Sweden, Business studies, Företagsekonomi
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