Yaying C. Yeh | Chiulien C. Venezia | Tzu-Ya Yang
pages: 21-29; JEL classification: M4, M12; 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.