Since the introduction of the Sarbanes-Oxley (SOX) Act in 2002, companies have begun to place more emphasis on information technology (IT) internal controls. IT internal controls are policies that provide assurance that technical systems operate as intended, provide reliable data, and comply with regulations. Research suggests that firms with strong internal controls perform better than those w...

Most observers would agree that the Sarbanes-Oxley Act (SOA) is the single most important piece of legislation affecting corporate governance, financial disclosure and the practice of public accounting. On the other hand, the SAP system is the most widely used ERP (Enterprise Resource Planning) system in the world. There are thousands of seamlessly linked components and subsystems. Conducting s...

Managers face a number of incentives to report earnings that meet or exceed the consensus analyst forecast. If a firm’s results of operations are not sufficient to meet the analysts’ expectations for a given period, the manager may 1) use accrual based earnings management techniques or 2) structure actual transactions to achieve the desired financial reporting result. Additionally, the manager ...

Information systems are facing conflicting requirements. On the one hand, systems need to be adaptive and self-managing to deal with rapidly changing circumstances. On the other hand, legislation such as the Sarbanes-Oxley Act, is putting increasing demands on monitoring activities and processes. As processes and systems become more flexible, both the need for, and the complexity of monitoring ...

The current research draws on the agency theory, the IT governance literature, and the executive compensation literature to present a theory of the antecedents of IT control weaknesses as reported under Sections 404 of Sarbanes-Oxley Act. More specifically, this paper examines the association between two categories of governance mechanisms (IT governance mechanisms and IT executive incentive al...

With the advent of federal regulations such as the Sarbanes Oxley act and the amended Federal Rules for Civil Procedure guidelines, KMCO Gaming, a leading casino gaming firm, is grappling with managing electronic data and records in compliance with legal requirements. In the midst of a major lawsuit against a rival company, KMCO has decided to purchase an electronic discovery (E-Discovery) solu...

To curb tax avoidance and evasion through charitable foundations, the Tax Reform Act of 1969 imposed regulatory requirements similar to those that would be included in the Sarbanes-Oxley Act over 30 years later. I have compiled the first longitudinal data set spanning the introduction of the new regulations by digitizing directories that included both affected and unaffected foundations. The re...

The Sarbanes-Oxley Act (SOX) of 2002 places significant and costly new burdens on public companies. Meeting the recurring requirements for financial reporting under SOX effectively will demand innovative application of information technology. The Continuous Auditing Web Services model (CAWS) provides a framework for considering how to efficiently manage and automate financial reporting. We prop...

This paper examines the relationship of CEO pay and company performance for 280 firms listed on the New York Stock Exchange for a period from 2006 through 2009. The time frame of the study is a period after the adoption of the Sarbanes Oxley Act and after the SEC approval of the corporate governance rules affecting executive pay for New York Stock Exchange companies. I find there to be a positi...