An Analysis of the Demand for Reporting on Internal Control
The purpose of this study is to analyze the demand for reporting on internal control. Nine financial statement user groups were identified and surveyed to determine whether they agree that: 1. Management reports on internal control are useful. 2. MRICs influence decisions. 3. Financial reporting is improved by adding MRICs. In addition, the paper examined whether responses varied based on: 1. the definition of internal control used, and 2. user group. The results indicate that financial statement users agree that internal controls are important. Respondents agreed that voluntary MRICs improved controls and provided additional information for decision making. Respondents also agreed that mandatory MRICs improved controls, but did not agree about the value for decision making.
Hermanson, Heather M. "An Analysis of the Demand for Reporting on Internal Control." Accounting Horizons 14.3 (2000): 325-341.