Document Type

Article

Department or Administrative Unit

Accounting

Publication Date

2012

Abstract

In an attempt to bolster public confidence in the accounting profession, the PCAOB issued several standards that were intended to address weaknesses in audit reporting and to increase public confidence in financial reporting. One of these standards, Auditing Standard No.2, added two opinions on an enterprise’s internal control to audit reporting requirements. This Standard was superseded by Auditing Standard No. 5, which eliminated one of these opinions. The purpose of this paper is to examine the efficacy of the elimination of the auditor’s opinion regarding management’s assessment of internal control. The data in this study were taken from 10-K reports filed by Fortune 500 Companies in 2004-2007. From the 10-K reports, copies of audit reports were gathered for 114 of the 120 largest companies and the opinions (unqualified, qualified, or adverse) were recorded.

Comments

This article was originally published in the International Journal of Accounting and Financial Reporting.

Journal

International Journal of Accounting and Financial Reporting

Share

COinS