Malinda Richardson |
Name: Malinda Richardson
Home Institution: Alcorn State University Discipline: Accounting Mentor’s Name: Dr. Pascal Bizarro Exp. Graduation Date: 05/2007 Organizations & Honors:
|
ABSTRACT
Sarbanes-Oxley Act Of 2002: The Relationship Between Type Of Material Weaknesses And Firm’s Characteristics
| As management began to fear for their livelihood once they noticed
businesses crumbling all around them, Congress took note of these actions
and created the Sarbanes-Oxley Act of 2002. This act required that management
annually evaluate, test, and report on the entity’s internal control over
financial reporting, as well as do their initial job of being responsible
for the design and maintenance of the company’s internal control (Ramos
2004). They required the Securities and Exchange Commission (SEC) to provide
the rules for this act as well as govern the accordance to the act. This
study will determine whether a relationship exists between material weakness
(es) in the internal control system and firm characteristics, which are
size, auditor, and industry. This research is significant to the entire
accounting profession because it has great professional value and it will
help companies to determine how they can better run their businesses. The
research design to be used is the multinomial logistic regression with
a categorical dependent variable that has more than two categories. The
sample was created using CompuStat files and Compliance Week issues by
reading the material weaknesses for the companies that reported them from
December 2003 to April 2005.
Key words: Sarbanes-Oxley, internal control, material weaknesses. Data availability: Data are available from the author. |