This study experimentally examines potential non-professional investors’ understanding of a random sample of SOX 404 reports containing both IT weaknesses (ITWs) and non-IT weaknesses (non-ITWs) as reflected in their internal control weakness (ICW) severity ratings and their accuracy in identifying the reported ICWs. We find that the number of perceived non-ITWs and report length are positively associated with potential investors’ ICW severity ratings and that failing to perceive non-ITWs reduces potential investors’ ratings of weakness severity. However, the number of perceived ITWs is not associated with potential non-professional investors’ ratings of the overall severity of ICWs. Potential investors’ errors in identifying both non-ITWs and ITWs are associated with the number of non-ITWs and ITWs reported. Also, errors are positively associated with lower readability of SOX 404 reports. We identify specific types of ITWs and non-ITWs that contribute the most to the total number of errors made by non-professional investors in perceiving ICWs.

这项研究通过实验检验了潜在的非专业投资者对SOX 404报告随机样本的理解，该报告同时包含IT弱点（ITW）和非IT弱点（non-ITW），这反映在他们的内部控制弱点（ICW）严重等级及其确定报告的ICW的准确性。我们发现，感知到的非ITW的数量和报告的长度与潜在投资者的ICW严重性等级呈正相关，而未能感知到非ITW的情况会降低潜在投资者的弱点严重性等级。但是，ITW的数量与潜在的非专业投资者对ICW整体严重性的评级没有关系。投资者在识别非ITW和ITW方面的潜在错误与报告的非ITW和ITW的数量有关。也，错误与SOX 404报告的较低可读性正相关。我们确定特定类型的ITW和非ITW对非专业投资者在理解ICW中所犯错误总数的贡献最大。