Internal control in accounting research: A review

By K. Chalmers, D. Hay, Hichem Khlif. Journal of Accounting Literature, 2019

203 citations recorded by the source corpus.

In 2001, the US moved to regulate internal control reporting by management and auditors. While some jurisdictions have followed the lead of the US, many others have not. An important question, therefore, is the relevance of internal control to stakeholders. The more specific issue of the benefits of US-style regulation of internal control reporting is also topical. We review studies on the determinants of internal control quality and its economic consequences for stakeholders including investors, creditors, managers, auditors and financial analysts. We extend previous reviews by focusing on US studies published since 2013 as well as all non-US studies investigating IC quality including countries regulating IC disclosure as well as unregulated settings and both developed and developing economies. In doing so, we identify research questions where evidence remains mixed and new directions in which there are research opportunities.

Subfields: Accounting

View Paper: https://www.semanticscholar.org/paper/9f2434154f6ed92023a0bdab6999da2b3f64a5a1