外文翻译 公司特征与自愿性内部控制管理报告大学论文.doc

外文翻译--公司特征与自愿性内部控制管理报告 Firm Characteristics and Voluntary Management Reports on Internal Control SUMMARY:This study provides evidence on the nature of voluntary management reports on internal control MRIC , and on the characteristics of firms issuing suchreports, before internal control reports were mandated under Section 404 of theSarbanes-Oxley Act. We examine the association between firm characteristics and the voluntary inclusion of an MRIC in the firm’s annual report.Our analysis of 397 midsizedfirms in 1998 indicates that a voluntary MRIC is more likely for firms that are larger, have an audit committee that meets more often, have a greater level of institutional ownership, and have more rapid income growth. We find that a voluntary MRIC is less likely for companies with more rapid sales growth. Slightly more than one-third of our sample issues an MRIC. None of the voluntary MRICs mention any material weaknesses; no reports include an auditor attestation;less than half 41 percent of the reports include a statement that controls were effective;and only three of these reports include the criteria used to assess control effectiveness. Keywords:management reports on internal control; firm characteristics; corporate Governance. INTRODUCTION Section 404 of the Sarbanes-Oxley Act of 2002 SOX requires Securities and Exchange Commission SEC registrants to include in their annual report a management report on the effectiveness of internal control over financial reporting 404 Report and auditor attestation on this management report. Section 404 has become arguably the most controversial element of SOX.Many SEC registrants and business associations have complained about the costs associated with the internal control reporting requirement and have called for the revision if not repeal of Section 404 e.g., American Electronics Association [AEA] 2005; Advisory Committee on Smaller Public Companies 2006 . While SOX made 404 Reports mandatory, management reports