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Voluntary Adoption of Internal Audit by NASDAQ Firms and Its Impact on Internal Control Reporting

Omar Watts et al.

International Journal of Auditing2026https://doi.org/10.1111/ijau.70025article
AJG 2ABDC A
Weight
0.50

What the paper says

NASDAQ firms are not required to have an internal audit function. We exploit this voluntary setting to provide further insight into internal audit's role as a governance function. We search proxy statements and other sources to identify whether NASDAQ firms have an internal audit function. Firms with a higher risk profile are more likely to have an internal audit function, whereas smaller/resource constrained firms are less likely to invest in internal audit. NASDAQ firms with an internal audit function are more likely to report a material weakness under Sarbanes‐Oxley Section 302 or 404, indicating that internal audit reduces information asymmetry by communicating internal control issues.

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https://doi.org/https://doi.org/10.1111/ijau.70025

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@article{omar2026,
  title        = {{Voluntary Adoption of Internal Audit by NASDAQ Firms and Its Impact on Internal Control Reporting}},
  author       = {Omar Watts et al.},
  journal      = {International Journal of Auditing},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/ijau.70025},
}

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Voluntary Adoption of Internal Audit by NASDAQ Firms and Its Impact on Internal Control Reporting

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.