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V14 N2 Paper 1
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Annals of the MS in Computer Science and Information Systems at
UNC Wilmington
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Fall 2020
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Do Companies on the Leading Edge of IT Innovation have a Higher Risk of Material Weakness in Internal Controls
Jackson Abbott
Committee
Abstract
This research investigates the linkage between IT innovative and non-IT innovative firms with regards to material weaknesses in internal controls. It was based on a call for additional research by Whitworth et al. 2015’s paper “The Effects Of Information Technology Innovativeness On Audit Efficiencies” which desired a further investigation on the relationship between IT innovation and the accounting process. Overall, 100 firms in various SIC classifications were investigated and there was no significant evidence suggesting a difference between innovative and non-innovative with respect to material weaknesses in internal controls. This leads us to believe there is no inherent risk to being innovative in IT, at least regarding material weaknesses in internal controls. After further review, the types of material weaknesses and accounting rule application failures were categorized and compared. There was not enough data to compare statistically, but the data allows for a beneficial reference for any companies who are interested in becoming IT innovative.
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Recommended Citation:
Abbott, J., Janicki, T, Simmonds, D., Hermanson, S. (2020) Do Companies on the Leading Edge of IT Innovation have a Higher Risk of Material Weakness in Internal Controls. Annals of the Master of Science in Computer Science and Information Systems at UNC Wilmington, 14(2) paper 1. http://csbapp.uncw.edu/data/mscsis/full.aspx.
|
V14 N2 Paper 1
|
Annals of the MS in Computer Science and Information Systems at
UNC Wilmington
|
Fall 2020
|
