ICFR Challenges and Practices at Large US Public Companies: Evidence from Accounting Executives

57 Pages Posted: 8 Jan 2021

See all articles by Eldar Maksymov

Eldar Maksymov

Arizona State University (ASU) - School of Accountancy

Jeffrey S. Pickerd

The University of Mississippi

T. Jeffrey Wilks

Brigham Young University

Devin Williams

University of Illinois

Date Written: November 19, 2020

Abstract

We report insights about ICFR-related challenges and practices at large U.S. public companies from survey responses of 145 accounting executives and interviews of 16 accounting executives. Executives view controls around non-routine transactions, income tax provisions, and access to data as particularly challenging and report that ICFR challenges increase after corporate restructuring events. Executives are satisfied with existing ICFR guidance because it allows judgment but expressed interest in additional guidance in the form of real-life, industry-specific ICFR examples to counter what they perceive as the PCAOB’s standard-setting via auditors. Executives report relying on their auditors for ICFR insights and vetting ICFR judgments but are frustrated with auditors’ excessive ICFR documentation requirements that executives attribute to the PCAOB. Lastly, executives report lagging in implementation of ICFR technologies for lack of qualified personnel and concerns that such technologies could actually increase some risks. We discuss additional insights and suggest avenues for future research.

Keywords: ICFR, internal controls, accounting executives, COSO, auditors, audit committees

JEL Classification: M4, M40, M41, M42, M48

Suggested Citation

Maksymov, Eldar M. and Pickerd, Jeffrey Scott and Wilks, Thomas Jeffrey and Williams, Devin, ICFR Challenges and Practices at Large US Public Companies: Evidence from Accounting Executives (November 19, 2020). Available at SSRN: https://ssrn.com/abstract=3733945 or http://dx.doi.org/10.2139/ssrn.3733945

Eldar M. Maksymov (Contact Author)

Arizona State University (ASU) - School of Accountancy ( email )

Tempe, AZ 85287
United States

Jeffrey Scott Pickerd

The University of Mississippi ( email )

University, MS 38677
United States

Thomas Jeffrey Wilks

Brigham Young University ( email )

School of Accountancy
526 Tanner Building
Provo, UT 84602 84602
United States
801-422-3930 (Phone)
801-422-0621 (Fax)

HOME PAGE: http://marriottschool.byu.edu/directory/details?id=5337

Devin Williams

University of Illinois ( email )

1206 South Sixth Street
Champaign, IL 61820
United States

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