The Relationship Between CFO Qualifications and Internal Control Weakness

Yaying C. Yeh, Chiulien C. Venezia, Tzu-Ya Yang
2022 Financial Internet Quarterly  
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
more » ... ucation 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.
doi:10.2478/fiqf-2022-0010 fatcat:eckgxvfk2jf2xnzzace6qavldi