The consequences of information technology control weaknesses on management information systems: the case of Sarbanes-Oxley internal control reports

Authors:
Chan Li;Gary F. Peters;Vernon J. Richardson;Marcia Weidenmier Watson
Affiliations:
Katz Graduate School of Business, University of Pittsburgh, Pittsburgh, PA;Sam M. Walton College of Business, University of Arkansas, Fayetteville, AR;Sam M. Walton College of Business, University of Arkansas, Fayetteville, AR;Richard C. Adkerson School of Accountancy, Mississippi State University, Mississippi State, MS
Venue:
MIS Quarterly
Year:
2012

Citing 17
Cited 1

Assessing data reliability in an information system

Journal of Management Information Systems - Special Issue: Database Management
Data quality in context

Communications of the ACM
A product perspective on total data quality management

Communications of the ACM
The impact of poor data quality on the typical enterprise

Communications of the ACM
Impact of information quality and decision-maker quality on decision quality: a theoretical model and simulation analysis

Decision Support Systems
Data quality assessment

Communications of the ACM - Supporting community and building social capital
A Framework for Analysis of Data Quality Research

IEEE Transactions on Knowledge and Data Engineering
The Impact of Data Quality Information on Decision Making: An Exploratory Analysis

IEEE Transactions on Knowledge and Data Engineering
AIMQ: a methodology for information quality assessment

Information and Management
Assessing data quality with control matrices

Communications of the ACM - Information cities
The Impact of Experience and Time on the Use of Data Quality Information in Decision Making

Information Systems Research
A Theoretical Integration of User Satisfaction and Technology Acceptance

Information Systems Research
Beyond accuracy: what data quality means to data consumers

Journal of Management Information Systems
A review of information security issues and respective research contributions

ACM SIGMIS Database
On Data Reliability Assessment in Accounting Information Systems

Information Systems Research
Antecedents of Information and System Quality: An Empirical Examination Within the Context of Data Warehousing

Journal of Management Information Systems
Measuring the effectiveness of computer-based information systems in the financial services sector

MIS Quarterly

Conceptual fluidity in the study of accounting information systems: the case of corporate performance management

International Journal of Business Information Systems

Quantified Score

Hi-index	0.00

Visualization

Abstract

In this article, the association between the strength of information technology controls over management information systems and the subsequent forecasting ability of the information produced by those systems is investigated. The Sarbanes-Oxley Act of 2002 highlights the importance of information system controls by requiring management and auditors to report on the effectiveness of internal controls over the financial reporting component of the firm's management information systems. We hypothesize and find evidence that management forecasts are less accurate for firms with information technology material weaknesses in their financial reporting system than the forecasts for firms that do not have information technology material weaknesses. In addition, we examine three dimensions of information technology material weaknesses: data processing integrity, system access and security, and system structure and usage. We find that the association with forecast accuracy appears to be strongest for IT control weaknesses most directly related to data processing integrity. Our results support the contention that information technology controls, as a part of the management information system, affect the quality of the information produced by the system. We discuss the complementary nature of our findings to the information and systems quality literature.