She examines 128 internal control deficiencies (including significant deficiencies
that are not classified as material weaknesses) reported from 1994 to 2000 in the
8-Ks of firms that changed auditors. Her focus is on the association between audit
committee quality and internal control quality, which she finds to be positively related.
However, her sample is limited to firms that changed auditors. We present a much broader
study of the determinants of internal control problems with our sample of 779 unique
firms disclosing material weaknesses in the three years following the effective date of
Section 302.