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Teaching managerial responsibilities for internal controls: Perception gaps between accounting and management professors

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  • Miller, Karen C.
  • Proctor, Thomas Y.
  • Fulton, Benjamin

Abstract

An organization needs a proper managerial tone to maintain a sound control environment. However, managers cannot support a control environment they do not understand. This misunderstanding generates a perception gap between corporate managers and auditors concerning internal control responsibilities, which may extend to academia as well. This research examines the perceptions of accounting and management professors concerning the understanding of who is ultimately responsible for establishing and maintaining internal controls over financial reporting and finds a statistically significant difference of opinion between the two groups. A large number of management professors surveyed relegate this role to internal auditors instead of management. These findings indicate management professors may not be fully aware of the responsibilities placed on managers of publicly traded companies for internal controls over financial reporting by the Sarbanes–Oxley (SOX) Act of 2002. The survey also finds a statistically significant difference in the perceptions of accounting and management professors concerning where the topic of internal controls should be taught and who is most qualified to teach internal controls to non-accounting business majors. This disconnect between management and accounting professors could potentially generate a business curriculum that leaves non-accounting business majors with little or no exposure to the roles and responsibilities of managers concerning internal controls over financial reporting. This research highlights the important role of accounting professors to help minimize this disconnect and provides specific recommendations to improve the exposure necessary for non-accounting business majors.

Suggested Citation

  • Miller, Karen C. & Proctor, Thomas Y. & Fulton, Benjamin, 2013. "Teaching managerial responsibilities for internal controls: Perception gaps between accounting and management professors," Journal of Accounting Education, Elsevier, vol. 31(1), pages 1-16.
    • Handle: RePEc:eee:joaced:v:31:y:2013:i:1:p:1-16
    DOI: 10.1016/j.jaccedu.2012.12.001
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    References listed on IDEAS

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    1. Jack Armitage, 2008. "Changes in the importance of topics in auditing education: 2000-2005," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(9), pages 935-959, October.
    2. Feng, Mei & Li, Chan & McVay, Sarah, 2009. "Internal control and management guidance," Journal of Accounting and Economics, Elsevier, vol. 48(2-3), pages 190-209, December.
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    Cited by:

    1. CRĂCIUN Liviu & BĂLOI Ionut-Cosmin, 2014. "Dysfunctions In The Application Of The Managerial Control Systems In Romanian Public Institutions: The Reporting Improprieties, The Information And The Communication Standards," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 1149-1155, July.
    2. Juan-Pierré BRUWER & Houdini FOURIE & Tracy BECK, 2019. "Considering the Control Legacy-K (CLK) Framework to Serve as a Basis for a Measuring Instrument to Assess the Control Environment of Non-JSE Listed Business Entities," Expert Journal of Business and Management, Sprint Investify, vol. 7(2), pages 271-279.
    3. Apostolou, Barbara & Dorminey, Jack W. & Hassell, John M. & Rebele, James E., 2015. "Accounting education literature review (2013–2014)," Journal of Accounting Education, Elsevier, vol. 33(2), pages 69-127.

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