內部統制의 重要한 缺陷에 影響을 미치는 要素

A Study on Factors affect Internal Control Material Weaknesses

A material weakness in internal control is defined as a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected. This study is to exam of factors affect internal control material weaknesses(ICMW). I examine factors of material weaknesses in internal control for 452 firms disclosing material weaknesses from 2004 to 2006 in US. For control firms, I use 417 firms of all Compustat firms sith available same SIC and similar to sale that did not disclose to ICMW firms. I use variables such as NIAT, REINV, MKCAP, AGE, EGROW, SEGMU to exam factors affect ICMW. The results of a study of factors affect ICMW show that ICMW firms tend to be financially weaker(NIAT, REINV), smaller(MKCAP), younger(AGE), growing rapidly(EGROW), more complex(SEGMU). This paper is possible that the major role for determining whether or not a firm has a material weakness in internal control vary among the sample firms. And this study help to future research night attempt to Korean firm relater decision making of internal control.