<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This study explores the relationship between CFO qualifications and a firm’s internal control weakness (ICWs). We use three measures for CFO competence: financial/accounting background, seniority, and education. Using a sample of Taiwanese listed firms from 2012 to 2015, the results of this study show a negative relationship between CFO financial/accounting background and seniority with internal control weakness, indicating firms with higher quality CFOs experience a lower number of ICWs. CFO education level, however, is not related with a firm’s internal control weakness. The results imply that capable CFOs can effectively implement a good internal system. The result of this study provides practical and policy implications.</p>
</abstract>

This study explores the relationship between CFO qualifications and a firm’s internal control weakness (ICWs). We use three measures for CFO competence: financial/accounting background, seniority, and education. Using a sample of Taiwanese listed firms from 2012 to 2015, the results of this study show a negative relationship between CFO financial/accounting background and seniority with internal control weakness, indicating firms with higher quality CFOs experience a lower number of ICWs. CFO education level, however, is not related with a firm’s internal control weakness. The results imply that capable CFOs can effectively implement a good internal system. The result of this study provides practical and policy implications.

The Relationship Between CFO Qualifications and Internal Control Weakness

An Associate Professor of Framingham State University

Department of Accounting, Economics, and Finance

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"The Relationship Between CFO Qualifications and Internal Control Weakness"}

This study explores the relationship between CFO qualifications and a firm’s internal control weakness (ICWs). We use three measures for CFO competence:...

The Relationship Between CFO Qualifications and Internal Control Weakness

Publié en ligne: 11 juil. 2022

Pages: 21 - 29

Reçu: 01 mars 2022

Accepté: 13 mai 2022

DOI: https://doi.org/10.2478/fiqf-2022-0010

Mots clés
CFO qualification, Financial Accounting background, CFO competence, Seniority, Internal control weakness

© 2022 Yaying C. Yeh et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The Relationship Between CFO Qualifications and Internal Control Weakness

Publié en ligne: 11 juil. 2022

Pages: 21 - 29

Reçu: 01 mars 2022

Accepté: 13 mai 2022

DOI: https://doi.org/10.2478/fiqf-2022-0010

Mots clésCFO qualification, Financial Accounting background, CFO competence, Seniority, Internal control weakness

© 2022 Yaying C. Yeh et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Mots clés
CFO qualification, Financial Accounting background, CFO competence, Seniority, Internal control weakness