The Relationship Between CFO Qualifications and Internal Control Weakness
Yaying C. Yeh
An Associate Professor of Framingham State University, Department of Accounting, Economics, and FinanceUSA
Profilo OrcidCerca questo autore su
, Chiulien C. Venezia
Professor of Frostburg State University, Department of AccountingUSA
Profilo OrcidCerca questo autore su
e 11 lug 2022
INFORMAZIONI SU QUESTO ARTICOLO
Pubblicato online: 11 lug 2022
Pagine: 21 - 29
Ricevuto: 01 mar 2022
Accettato: 13 mag 2022
DOI: https://doi.org/10.2478/fiqf-2022-0010
Parole chiave
© 2022 Yaying C. Yeh et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.
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.