Sentence examples for an internal control audit from inspiring English sources

Further, we expect investor reactions will be magnified as the percentage of a company excluded from an internal control audit increases.

A key innovation in this study is that we exploit a regulatory exemption that allows companies the option to exclude acquired operations from an internal control audit in the year of acquisition.

If investors demand internal control assurance either because of (a) expected improvements in information quality, or (b) information signaled by management's choice to have the audit, we hypothesize that investors will respond negatively to the revelation that an internal control audit did not include acquired operations.

Even though these large companies would seemingly have high quality financial reporting ex ante, we find that investors react negatively if these companies exclude a portion of their operations from their internal control audit.

With respect to our hypotheses, we find that companies that exclude acquired operations from the internal control audit experience negative and statistically significant abnormal returns on the day that the opt-out decision is revealed (i.e., the Form 10-K release date).

Salvatore is an Audit partner in KPMG's Metro practice and has more than 20 years of experience providing financial statement and internal control audit services.

As Vice Chairman of PwC's Assurance Practice, he focused on expanding internal control audit methodologies to exceed the standards of regulators and shareholders.

Having found evidence that investors demand internal control audits in a relatively homogenous group of large U.S. companies, we next examine whether investors' reactions appear justified.

In sharp contrast to prior studies on internal control audits, the average company in our study has a market capitalization of $10.1 billion, making the companies in our study more representative of the large companies that make up the overall U.S. market capitalization.

An analysis of the implementation of SOX 404(b) mandatory internal control audits in 2004 shows that clients' tendency to choose pre-existing social norm audit offices can be disrupted by exogenous events.

Importantly, because the extent of internal control audits is associated with future restatements, reductions in mandated internal control audits may have a negative impact on future reporting quality.