When Reporting Internal Control Problems Costs Audit Partners

When Reporting Internal Control Problems Costs Audit Partners The research investigates how audit firms reassign and reward engagement partners after they issue adverse internal control opinions under SOX 404(b), revealing potential disincentives that may discourage accurate reporting of material weaknesses.01/20/2026 A conceptual illustration shows a central business leader balancing opposing directional forces, symbolizing the professional and organizational pressures involved in making high-stakes oversight and accountability decisions.

A conceptual illustration shows a central business leader balancing opposing directional forces, symbolizing the professional and organizational pressures involved in making high-stakes oversight and accountability decisions.

Ashleigh Bakke & Stephen Roweresearchtopfeatured