IDEAS home Printed from https://ideas.repec.org/a/ids/ijaape/v20y2024i3-4p342-367.html
   My bibliography  Save this article

Internal control quality and audit fees: does the CIO matter?

Author

Listed:
  • Jean R. Bradley
  • Harrison Liu
  • Jennifer Yin

Abstract

This study investigates the influence of the chief information officer (CIO) on internal control over financial reporting (ICFR) and audit fees. We find that firms with CIOs in the top management team (TMT) are significantly less likely to receive an adverse Section 404 report. We also find that audit fees are lower for firms with high-status CIOs in industries with low IT spending. In high IT-intensity industries, audit fees are higher, consistent with the higher risk associated with IT spending. These results provide evidence that, while CIOs in the TMT are associated with better overall internal control quality, the promise of lower audit fees through sophisticated IT system controls has not been fully realised.

Suggested Citation

  • Jean R. Bradley & Harrison Liu & Jennifer Yin, 2024. "Internal control quality and audit fees: does the CIO matter?," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 20(3/4), pages 342-367.
    • Handle: RePEc:ids:ijaape:v:20:y:2024:i:3/4:p:342-367
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=138474
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijaape:v:20:y:2024:i:3/4:p:342-367. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=41 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.