This study examines the association between the internal control weakness and the quality of financial reports for Taiwan IPOs. Using the absolute values of real earnings management and the absolute values of discretionary accruals as the measure of the quality of financial reports, the empirical results have shown that internal control weakness is positively related to the absolute value of real earnings management and the absolute value of discretionary accruals. Therefore, those firms characterized by internal control weaknesses have poorer quality of financial statements than other firms.