The Impact of Firm Characteristics and IT Governance on IT Material Weaknesses
Date
2018-04
Authors
Zhang, Peiqin
Zhao, Kexin
Kumar, Ram L.
Journal Title
Journal ISSN
Volume Title
Publisher
IGI Global
Abstract
Accurate and timely reporting of organizational performance is becoming increasingly important and highly regulated. However, organizations face a variety of challenges in seeking to provide accurate and reliable information due to the existence of IT control problems. Hence it is important for end users including auditors and managers to understand how to manage IT material weaknesses ITMWs. While there is extensive accounting research on general material weaknesses MWs, ITMWs are under researched. This article identifies key firm characteristics that appear to be related to ITMWs. In addition, the authors suggest that IT governance may help firms mitigate such problems. To gain a deeper understanding of IT governance effects, this article proposes a model which includes an innovative construct, ITGOV, operationalized using secondary data. The authors empirically validate the proposed model based on a data set of 1,112 firms. Their study illustrates the differences between ITMWs and general MWs. These results can also help end users computing by offering insights into better management of ITMWs.
Description
Keywords
IT governance, IT internal controls, IT material weaknesses, SOX 404
Citation
Zhang, P., Zhao, K. & Kumar, R. L. (2018). The impact of firm characteristics and IT governance on IT material weaknesses. Journal of Organizational and End User Computing, 30(2), pp. 88-111.
Rights
Rights Holder
© 2018 IGI Global