The purpose of the research was to study the relationship
between internal control disclosure and the earnings management
practice employed by companies listed on the Stock Exchange of
Thailand. Data of 288 companies were acquired in 2018 to assess
the internal control system of firms according to the framework
provided by the Securities and Exchange Commission of Thailand.
Basing on the model of Yoon, Miller, and Jiraporn (2006), the gross
accrual earnings management variable was measured based on the
discretion of executives. The multiple regression analysis was utilized. The result from hypothesis testing found that internal
control disclosure level of firms is not associated with earnings
management. The findings revealed that the earnings management
practice of a company cannot be fully prevented by its internal
control system as it is affected by the discretion of the company’s
executives. This empirical study provides companies with important
information to consider when planning the company’s internal
control system and corporate governance process in developing the
earnings quality. In addition, the study creates awareness in investors
and stakeholders when making investment decisions in various
companies.