• Management & Information Systems Review
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• v.33 no.1
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• pp.173-190
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• 2014

According to COSO(2013) "Internal control is a process that is designed to provide reasonable assurance that a firm can achieve its objectives, where differing aspects of internal control can be partitioned into operating objectives, reporting objectives, and compliance objectives." Internal control over financial reporting(ICFR) is focus on reporting objectives and includes that provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements. Thus, firms with weak ICFR have negative a effect on Firm value because those firms are great likelihood of misappropriation and inefficiency decision. In this regard, this study investigates the association of ICFR with the likelihood of firm failure. Specially, I measure the characteristic of ICFR as disclosures of material weaknesses and operating personnel of ICFR. I identify the likelihood of firm failure as going-concern opinion issued in audit report. As result, I find that a higher probability of firm failure is positively associated with the material weakness in ICFR also I find that a higher probability of firm failure is negatively associated with experience and qualified CPA of personnel in ICFR.

• Journal of the Korea Convergence Society
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• v.11 no.2
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• pp.207-214
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• 2020

The objective of this study is to analyze the effect of the quality of the Internal Accounting Control System(IACS) on Executive compensation, and to determine whether this relationship depends on the effectiveness of corporate governance. For the analysis, 6,343 firm-year data listed on the Korea Exchange from 2011 to 2016 were used. The results are as follows. First, Executive compensation was decreased in companies with low quality of IACS to provide a penalty for management. Second, the negative relationship between the weaknesses of IACS and Executive compensation was found to be strengthened when the corporate governance was effectively operated. These findings suggest that information about the quality of the IACS can be usefully used to reasonably identify the executive compensation policy, and that corporate governance needs to be operated more efficiently.

• Venture DIGEST
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• s.94
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• pp.32-33
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• 2006

• Journal of Digital Convergence
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• v.19 no.8
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• pp.141-149
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• 2021

This study investigated the effect of accounting information on dividend policy as a measure of corporate conservatism from the perspective of the internal accounting management system. The verification is based on a sample of 543 companies listed on securities (excluding KOSDAQ and financial industry) among the Bank of Korea (2019) 「2018 Corporate Management Analysis」 and company analysis of the Korea Productivity Center (financial data disclosed as listed companies as a December settlement company) was composed. Using SPSS 22, empirical analysis was conducted using exploratory factor analysis and regression analysis. The first is the verification related to corporate conservatism and the role of dividend policy, and it is verification of whether internal accounting management influences financial decision-making. Second, if internal accounting management exists, it is a verification of how conservatism and investment policies (in-house reserve, debt borrowing, capital increase, dividends, etc.) affect the corporate value according to accounting information. As a result, from the perspective of the internal accounting management system, it was found that among the variables of accounting information, profitability can have a positive effect on corporate conservatism and dividend policy as a corporate valuation method of reinvestment. In addition, it has been proven that corporate conservatism has an effect on profitability-to-value through capital accumulation and reinvestment such as surplus and internal reserves. In the future, we will study and discuss the complementarity of corporate conservatism and dividend policy in relation to governance structure and improvement of the internal accounting management system.

• 한국디지털정책학회:학술대회논문집
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• 2007.06a
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• pp.233-248
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• 2007

최근 한국과 미국 기업에 있어서 회계법상 가장 큰 이슈 중 하나는 재무보고와 관련된 내부통제제도(ICFR: Internal Control over Financial Reporting)에 관한 것이다. 한국과 미국에서 각각 내부회계관리제도와 SOX(Sarbanes Oxley Act)라고 불려지고 있는 내부통제 법령에 의해 기업들은 자체적으로 내부통제를 구축, 운영하고, 이에 대해 매년 회계법인에 의해 검토 또는 감사를 받게 되었다. IT 부문도 기업 업무 영역에서 중요성을 더해가고 있기 때문에 내부통제 제도의 한 영역을 차지하게 되었다. 본 연구에서는 기업 특성과 IT 관리 특성이 기업의 IT 부문 내부통제 구축 시 어떤 영향을 미치는지에 대해 실제 기업 IT 내부통제 구축 데이터를 대상으로 하여 실증적인 분석을 실시하였다. 이를 위해 기업 특성 중 자산, 종업원 수, 업종과 IT 관리 특성 중 IT 기획팀 IT 아웃소싱, 주 시스템 플랫폼을 각각 독립변수로 선정하였고, 이들 6개 독립변수가 내부통제 구축 시 도출된 통제항목(Control Activities) 개수 대비 미비점(Deficiency) 비율, 통제항목 개수, 미비점 개수 각각에 대하여 영향을 미치는 지에 대해 검증하였다.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.10 no.6
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• pp.1353-1360
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• 2009

This study examines the effects of internal control system and Analysis of characteristics and Earning management in Vulnerable Cooperation. During research period 2005${\sim}$2007, Purpose of this study is to examines whether financial characteristics has exist or not. Second, Earning management also. As a result of analysis are as follows, First T-test and logistic regression has found explanatory with stastical significance about CURRENT, RNPS, and DEPT. Second, DA of Vulnerable Cooperation is significantly higher than Normal cooperation.

• Management & Information Systems Review
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• v.30 no.3
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• pp.169-190
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• 2011

Recent academic studies have investigated book-tax differences as an indicator of earnings management. Tax accounting texts claim that the differences between pre-tax financial reporting earnings and taxable income can provide information about current earnings, and the large differences between book and taxable incomes are an indicator of low-quality financial reporting earnings. This study investigates the effect of internal control system over book and tax difference using the KOSPI and KOSDAQ firms from 2006 to 2008. The empirical findings are consistent with a weakness of internal control system being associated with higher book-tax difference. That means a firm which has material weakness in the internal control system allows for more malpractice. In addition to this, If the managers tries to the efficient tax decrease strategy, book-tax difference can be large. Which in turn leads us to observe a positive relation between the weakness of internal control system and intensity of book-tax difference. Overall, we interpret this evidence as indicating that the failure of the internal control system can effect not only investors and creditors but also tax authorities. And It emphasizes that a more effective internal control system linked with sound corporate governance.

• Journal of the Korea Convergence Society
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• v.9 no.11
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• pp.307-313
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• 2018

In this study, analyzed the effect of the introduction and operation of internal control system of a company on accounting information usefulness in a rapidly changing business environment. In order to conduct this study, we studied a comprehensive analysis on the usefulness of internal control and accounting information, and applied the research model to the purpose of this study. In this study, we analyzed the degree of the relationship between variables based on the discretionary accruals of the modified Jones model using the internal control evaluation index based on the components of the internal control system for China. In the empirical analysis, analyzed that the operation of internal control has a negative influence on discretionary accruals, which is a substitute for usability of accounting information. In addition, the risk management factors of the internal control system have a negative correlation with the usefulness of accounting information. The results of this study suggest that it is possible to present the positive function of internal control system to many firms where the introduction and operation of internal control is important, and to provide useful guidance in the study of the relationship between the operation of internal control and discretionary accruals for foreign company.

• Journal of Korea Society of Industrial Information Systems
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• v.27 no.3
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• pp.127-144
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• 2022

This study attempted to analyze the influence of both internal and external business environment factors on the characteristics of the management accounting system (MAS). For this, external business environment factors were divided into environmental uncertainty and market competition while internal factors were classified into management strategy, organizational structure and advanced manufacturing technology. In addition, the characteristics of the MAS were categorized into information scope, timeliness, integration and aggregation. The study results found the followings: Among business environment factors, environmental uncertainty had a relatively significant effect on the scope, integration and aggregation of information while organizational structure revealed the largest influence on timeliness. However, market competition had no particular effect on the characteristics of the MAS.

• Journal of Digital Convergence
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• v.14 no.8
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• pp.163-175
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• 2016

The purpose of this study is to provide an efficient internal control system formation incentives for company and to confirm empirically usefulness of the internal accounting control system for financial institutions by analyzing whether the internal control vulnerabilities of companies related significantly to the classification and assessment of soundness of financial institutions. Empirical analysis covered KOSPI, KOSDAQ listed companies and unlisted companies with more than 100 billion won of assets which have trading performance with "K" financial institution from 2008 until 2013. Whereas non-internal control vulnerability reporting companies by the internal control of financial reporting received average credit rating of BBB on average, reporting companies received CCC rating. And statistically significantly, non-reporting companies are classified as "normal" and reporting companies are classified as "precautionary loan" when it comes to asset quality classification rating. Therefore, reported information of internal control vulnerability reduced the credibility of the financial data, which causes low credit ratings for companies and suggests financial institutions save additional allowance for asset insolvency prevention and require high interest rates. It is a major contribution of this study that vulnerability reporting of internal control in accordance with the internal control of financial reporting can be used as information significant for the evaluation of financial institutions on corporate soundness.