Determinants of voluntary disclosure of internal control weaknesses in Tunisia

Abstract

The main objective of this research is to examine the determinants which can push the auditors to reveal the weaknesses of the internal control system in companies listed on the Stock Exchange Securities of Tunisia. We are particularly interested in determinants related to corporate governance, ownership structure and some company characteristics. The conceptual framework referred to this work is the agency theory. We concluded from the results of the logistic regression model that the probability of disclosure of internal control weaknesses was not significantly associated with corporate governance and ownership structure. However, some other company characteristics, e.g. the size are strongly related with probability of firms disclosing internal control weaknesses.