Vol. 18 No. 2 (2022), Articles
Vol. 18 No. 2 (2022)

THE RELATIONSHIP BETWEEN CFO QUALIFICATIONS AND INTERNAL CONTROL WEAKNESS

Articles
Published 2024-01-05
YAYING C. YEH
Framingham State University, Department of Accounting, Economics, and Finance, USA
https://orcid.org/0000-0002-8649-1183
CHIULIEN C. VENEZIA
Frostburg State University, Department of Accounting, USA
https://orcid.org/0000-0001-6895-5485
TZU-YA YANG
Deloitte and Touche, USA
https://orcid.org/0000-0001-8261-4003
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Keywords

CFO qualification
Financial Accounting background
CFO competence
Seniority
Internal control weakness

Abstract

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 education 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.

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