محددات ضعف الرقابة الداخلية و أثره على مستوى التحفظ المحاسبي في التقارير المالية للشركات المسجلة في البورصة المصرية

الملخص EN

This study aimed at exploring the internal control weakness in the Egyptian listed companies, and analyzing the impact of such weakness on the level of accounting conservatism in the financial reports.

To achieve this objective, the study is based on content analysis method where a sample of ( 118) financial reports of Egyptian companies issued in 2014 were examined.

Two regression models were used, the first to examine the determinants of internal control weakness and the other to examine the impact of the weakness of internal control on accounting conservatism level.

The results showed that the internal control weakness was negatively associated with the company's life, the growth of sales and accumulated losses.

However, it was positively associated with the company mergers or acquisitions (as an indicator of restructuring).

There was no association between the internal control weakness and the number of segments, the quality of audit committee and resignation of an auditor.

In addition, the study found a negative significant association between internal control weakness and the degree of accounting conservatism in the financial reports, which indicates that an increase in the degree of accounting conservatism is linked to the existence of a strong internal control system.

The study recommended the adoption of high quality corporate governance practices, particularly in relation to the role of audit committees, to provide adequate financial resources to support a strong internal control system and enforce listed companies to publish a report on the effectiveness of internal control.

Moreover, it appeared that there is a need to revise audit standards and the legal environment to support the effectiveness of internal control systems in the Egypt.