Internal Control Verification: Motivation, Value, And Internal Control Efficiency

With the big financial fraud cases of American listed companies,the investors and regulators found that the lack of internal control systerm is so high costed. Then this brought into the attentions and discussions on the listed companies internal control regulation.The series of internal control regulation rules were put forword to the listed companies. The internal control regulation period has been coming into capital market and the listed companies work.The paper focus on the voluntary disclosure behavior of the listed companies in the Chinese A-share market. The paper tests the motivative of the voluntary disclosure of internal control audit opinion,market response of the market and the relationship between the internal control audit and internal control efficiency. It provides the evidence of the internal control regulation in the Chinese capital market.The paper first gives a clear explanation about the relevant concepts. The paper introduces the development of internal control regulation in the USA and China. Based on the literature review,we emphasized the importance of effects of internal control information disclouse. Then the paper describes the content of internal control audit opinion and evaluation report,finds the condition of China listed companies' internal control regulation is on the start level.Based on the analysis of singal theory, the paper test the motivative of internal control audit and find RLAG,ACCRUAL,EC and Audit Opinon play role in the dicision of voluntary disclosure. Then paper shows that the investors think the internal control audit is a good signal and give the higher ERC.At last,the evidence shows the positive relation between the internal control audit and internal control efficiency.