By using a measurement system called Internal Information Quality (IIQ), a company can check the quality and ease of access of information within the firm.
A company's IIQ rate is determined by four data measurements:
- The speed at which management released an earnings announcements after its fiscal year closed
- The accuracy of management's earnings forecasts
- The absence of material weaknesses in internal controls
- The lack of restatements due to errors
High IIQ companies tend to earn from its transparency by finding better ways to lower their taxes.