279.F论中小油田企业内部控制存在问题及对策 外文原文.docVIP

How Does Internal Control Regulation Affect Financial reporting Jennifer Altamuro Fisher college of Business The Ohio State University Abstract:Internal control regulation effectiveness remains controversial given the recent financial crisis. To address this issue we examine the financial reporting effects of the Federal Depository Insurance Corporation Improvement Act (FDICIA) internal control provisions. Exemptions from these provisions for banks with assets under $500 million and for non-U.S. banks provides two unaffected control samples. Our difference in differences method suggests that FDICIA-mandated internal control requirements increased loan-loss provision validity, earnings persistence and cash-flow predictability, and reduced benchmark-beating and accounting conservatism for affected versus unaffected banks. More pronounced effects in interim versus fourth quarters suggests that greater auditor presence substitutes for internal control regulation. 1. Introduction Internal control systems have long been advocated as a mechanism for establishing high quality financial reporting, and firms have voluntarily used them for this purpose. In response to several high-profile financial frauds, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) issued their Internal Control - Integrated Framework in September 1992. This report provided a foundation for assessing internal control effectiveness. Since then, several waves of accounting scandals have led to regulatory requirements for managers and auditors to report on internal control effectiveness. Most recently, the Sarbanes Oxley Act (SOX) internal control provisions have fueled the ongoing debate among regulators and practitioners about the effectiveness of this type of regulation in improving financial reporting quality given the subsequent financial crisis. In a speech delivered at the U.S. Chamber of Commerce Global Capital Markets Summit, James Turley (2008), Chairman and CEO of Erns