A Research on the Effective Factors of Internal Control
|School||Dongbei University of Finance|
|Keywords||internal control deficiency influence factors empirical analysis|
American internal control information comes into a mandatory disclosure time since America issue Sarbanes-Oxley Act. And at the same time our country begins getting ready for carrying out the internal control. In 2006, Shanghai and Shenzhen securities exchange issued internal control guidelines one after another. From then on, listed companies are required to disclose internal control self-assessment report. But the two guidelines have differences. In 2008, five ministries jointly issue "Basic norms of internal control", it is asked to implement within the scope of listed company. In 2010, the above five ministries issue "The enterprise internal control supporting guidelines" in detail according to "Basic norms of internal control". The guidelines will be effective in 2011 in the scope of main board listed companies which go public at home and broad and in 2012 in the scope of all listed companies. The series of norms issue make internal control become hot topic in recent years, and at the same time provide the material for studying internal control deficiency.The objective of internal control is to ensure the reliability of the financial report, Business efficiency and effectiveness and compliance with laws and regulations. Internal control self-assessment report consist of two blocks, the first is the establishment and implementation of internal control system, including five elements and the key control activities; the second is problems of internal control system, as well as in internal control implementation. But the listed companies have tendency of reporting good news and hiding bad news. One deficiency can make the whole internal control system paralyzed no matter how perfect the others are. So the paper studies internal control in the direction of deficiency. What lead to internal control deficiency on earth, and what motivation does the company have to disclose internal control deficiency in the background of not being punished without disclosing deficiency and bad influence when disclosing. The paper will study the issue in the perspective of positivism.We discuss the issue in five parts:The first is introduction. We will discuss the background, expatiate the motivation, theoretical significance and practical significance, relevant theoretical achievements at home and abroad.The second is theoretical analysis about what maybe lead to internal control deficiency, comprising of internal control theory and effective factors.The third is a research on the effective factors of internal control. We study 2008-2010 internal control self-assessment report about A-share main board listed company in Shenzhen security exchange, which come from cninfo. We put point in internal control deficiency disclosure. In the basis of Descriptive statistics and Correlation analysis,the paper try to find what lead to internal control deficiency and what incentive the company have to disclose it using logistic analysis.The fourth is how to avoid the internal control deficiency occur and improve internal control.The fifth is conclusion and prospect. This paper points out the shortcomings of the conclusions and research prospect.