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Full-Text Articles in Business
Addressing Problems With The Segregation Of Duties In Smaller Companies, Audrey A. Gramling, Dana R. Hermanson, Heather M. Hermanson, Zhongxia Shelly Ye
Addressing Problems With The Segregation Of Duties In Smaller Companies, Audrey A. Gramling, Dana R. Hermanson, Heather M. Hermanson, Zhongxia Shelly Ye
Faculty and Research Publications
The article discusses the problems encountered by smaller companies in the U.S. in the segregation of duties under Sarbanes-Oxley (SOX) section 404(a), which requires management to disclose its assessment of the effectiveness and weaknesses of internal control over financial reporting in the U.S. Analyses of the management report on internal control of sample companies cited by the authors showed that there are differences in the level of disclosure. The costs and benefits of using third parties in resolving segregation of duties problems are considered.
Sox Section 404 Material Weaknesses Related To Revenue Recognition, Dana R. Hermanson, Daniel M. Ivan, Susan H. Iva
Sox Section 404 Material Weaknesses Related To Revenue Recognition, Dana R. Hermanson, Daniel M. Ivan, Susan H. Iva
Faculty and Research Publications
The article analyzes disclosures of material weaknesses in internal control after the implementation of U.S. Sarbanes-Oxley Act of 2002 (SOX) 404 and summarizes the efforts of firms to remediate such material weaknesses. According to SOX section 404, management must issue a report on the effectiveness of the internal control of the firm over financial reporting. It notes that a report must be issued by the external auditor expressing an opinion on the effectiveness of internal control over financial reporting.
Building An Effective Internal Audit Function: Learning From Sox Section 404 Reports, Dana R. Hermanson, Daniel M. Ivancevich, Susan H. Ivancevich
Building An Effective Internal Audit Function: Learning From Sox Section 404 Reports, Dana R. Hermanson, Daniel M. Ivancevich, Susan H. Ivancevich
Faculty and Research Publications
In the wake of the major accounting scandals, internal auditing has emerged as a powerful force in promoting effective controls, risk management, and governance in U.S. companies. This article highlights recent internal audit-related problems that were revealed in SOX Section 404 reports and offers specific recommendations for building an effective, value-adding internal audit function.
Disaster Recovery Planning: What Section 404 Audits Reveal, Dana R. Hermanson, Daniel M. Ivancevich, Susan H. Ivancevich
Disaster Recovery Planning: What Section 404 Audits Reveal, Dana R. Hermanson, Daniel M. Ivancevich, Susan H. Ivancevich
Faculty and Research Publications
This article summarizes U.S. Sarbanes-Oxley Act section 404 internal control reports that reveal material weaknesses due to inadequate disaster recovery planning. According to the authors, Section 404 applies to public companies with over $75 million in public float. They advise that auditors evaluating internal control over financial reporting must consider key information technology-related risks and controls that affect financial reporting, including issues related to disaster recovery planning.
Assessing Internal Audit Quality, Audrey A. Gramling, Scott D. Vandervelde
Assessing Internal Audit Quality, Audrey A. Gramling, Scott D. Vandervelde
Faculty and Research Publications
Internal audit quality is an issue of great importance to both the internal and external audit professions. PCAOB Auditing Standard No 2 highlights this importance when addressing the reliance that the external auditor can place on the internal audit work product. The study discussed here experimentally tests the influence of the source of the internal audit function on both the internal and external auditors' evaluation of the quality of the internal audit function. To assess the importance of the internal audit function's sourcing arrangement in the internal audit function's quality assessment, the researchers employ a case study approach, modifying a …