Internal Control and Financial Statements Restatements

• Main Authors: Hsu, Ko-Chang, 許克彰
• Other Authors: Fan, Hung-Shu
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/25496315270487039001

碩士 === 輔仁大學 === 會計學系碩士班 === 100 === The purpose of this study is to investigate the relation between the internal control weakness and the possibility of financial statements restatements. After conducting a binary logistic regression analysis, this study finds that the possibilities of financial statements restatements are significantly positive-related with weak internal control. This study conducts several sensitivity analyses including replacing the weak internal control variable by the amount of the penalty due to weak internal control, the frequency of the penalty due to weak internal control tests, and adding the electronics industry dummy variable test. The empirical results of these sensitivity analyses are consistent with the main test results. Finally, this study splits financial statements restatements sample into two subsamples: restatements due to error or mandatory restatement and restatements not due to error or mandatory restatement. The empirical results of restatements due to error or mandatory restatement are consistent with the main test.