Table 3 presents descriptive statistics for the companies with IT-related internal control material weakness and the companies with effective internal control. Compared to companies with effective
controls, the companies with IT material weaknesses are less likely to have CIO positions, have shorter tenured CIOs, have fewer other senior managers with IT-related experience, have a lower percentage of independent directors on the board, and have fewer audit committee members with IT related experience. The CEO or CFO's previous IT experience does not differ between the two groups. With respect to control variables, IT material weakness companies are less likely to be clients of Big 4 auditors, are less likely to have CEOs serving as the chairman of the board, are more highly leveraged, report more losses, have a lower growth rate, are more likely to experience auditor changes, report higher audit fees, and are more likely to have organizational restructuring.