| Accounting information is of great significance in the capital markets, and is an important toolto maintain stability and efficiency of the capital market. Because the accounting information isgenerated within the enterprise, the quality of accounting information which is evaluated from theperspective of the accounting information’users is largely depended on the generation and deliveryprocess of accounting information. The "Enron" is a milestone for the western countries and is anopportunity of our country to establish a system of internal control evaluation and audit regulation.The establishment of the system aims atenhancing the overall quality of accounting information,improving the information of the investors and protecting the stability of capital market throughexplicating the requirements on the internal control system. Under this historic time point, theaccounting professions and auditing professions carried out extensive research on internal controls.But there is little systematic study on the role of accounting information from a theoreticaldiscussion and a verification of internal controls, which provides a research space for this article.This article can be logically divided into three parts:The first part is the review of relevant studies. Theoretical literatures on internal control andaccounting information relations were reviewed, which summarize the present study status and sortout the shortage of the present studies, which showthe significance and importance of this study.The second part is the theoretical analysis. From the internal controlled information theoryand the accounting information theory,we associated the features of thequality of accountinginformation reliability with the elements of internal control, and we also corresponded the relatedquality characteristics of accounting information and internal control information.We proposedthe effects of internal control to ensure the accounting information reliability andthe effects ofinternal control to enhanced the relevance of accounting information.This part of the study can bedivided into two main clues:â‘ the definition of accounting informationâ†'the development ofaccounting information theoryâ†'the purposes and characteristics of accounting informationtheoryâ†'the quality of accounting information characteristics and the evaluation methods of it;②the definition of internal controlâ†'the development of internal control theoryâ†'the purpose andcharacteristics of internal controlâ†'the level of internal control information and the evaluationmethods of internal control. Through the analyze of the development of the accountinginformation theory, we summarize the core purpose for the useful value of the accounting information to users is to reduce the transaction costs of market, the quality of accountinginformation can be summarized as the satisfaction of the users’needs. In the capital markets，animportant user of accounting information is the outside investors, and,to some extent, therequirements of the accounting information’quality is due to the other external investors.From the development of the internal control theory, an important objective of internal controltheory development is to provide a theoretical basis on the reliability of the internal controls to theaccounting information. From the internal control system and the development process, he drivingfactors of internal controlare largely associated with the capital market accounting informationfraud cases, then the value of the internal control of accounting information would have somecorrelation to the correlation of the accounting information. From the perspective of the efficientmarket theory and signal information on the internal control mechanism, we discussed themechanism of accounting information. This associated the accounting information reliability andrelevance to the feature of internal control，through this way can we create a complete internalcontrol structure for the accounting information theory.The third part is the empirical part. We conducted different empirical models onthe‖guaranteed role‖of internal control to the accounting information and the―enhanced‖signaleffect for the relevance of accounting information. Since the accounting informationreliability and relevance theoretically independent with each other and in practice it is difficult tointegrate together, we investigated through two main clues but did not establish a comprehensiveevaluation of accounting information structural quality. We give a direct evaluation of internalcontrol to analyze the reliability and applicability of accounting information andcorrelation.Empirical research from the perspective of each of the elements of internal controlinternal controls and the overall evaluation of the elements, the use of modified Jones model andregression analysis, internal inspection and control of the overall reliability of accountinginformation relevant relationships. But the number of the Supervisory Board accounting meeting ofcorporate and the index of whether a company discloses its information systems within theenterprise have a high correlation. Metrics internal control risk assessment factors, risk awarenessand risk analysis, though not by significant test, but in a comprehensive model which increasedsignificantly and reached the level of0.15.We can considerthe internal control risk assessmentfactors for accounting information reliability has some protection. Other elements of the internalcontrol metrics, indicators such as the control of environmental factors, control activities andmonitoring indicators index, have one or more representatives of indicators has significantstatistical significance. Through times empirical results can be considered a direct evaluation of internal control of accounting information reliability factor has a―guaranteed‖effect.Subsequently, in order to report information with the purpose of combining the informationas the quality of internal control internal control information, the paper Ohlson model using a setof internal control information, testing this information as a "signal" impact of accountinginformation and stock prices. Results are consistent with expectations, the results from the modelR square and p values of each index can be considered significant test: internal quality controlinformation compared to the low quality of the internal control information, the value of thecorrelation is low, the internal control quality display for high-quality, the accounting earningsinformation has become the main decision-making information; while the internal low-qualitycontrol information showed correlation with higher value and control information is displayedwhen the internal low-quality, value relevance of accounting earnings information reduced; andwhen the internal control information is displayed in the quality of accounting earnings informationhas a high correlation value and goodness of fit model is higher, then investors can considerinvesting decisions need to consider the internal controls and accounting joint informationinformation. Then total the model results, adding the internal control information in the regressionmodel accounting earnings information on the effect elements.The results showed thataccountingearnings without reducing the value of the correlation, while the internal control of information onthe role of accounting surplus items through a significant test. Judging from the information in theinternal control investment decisions of investors, but it is the accounting "signal" functioninformation has "strengthened" role. In the theory, the internal control of accounting informationshould have improved reliability and enhanced value relevance of accounting information role, butour empirical results show that the risk factors and the information and communication elements ofinternal control, no inspection of the relevant aspects of accounting and earnings of internal controlin the other three areas elements are tested significant correlation between the accounting andearnings quality. This shows that since the establishment of the internal control evaluation and auditsystem, in just a few years, at least in terms of guaranteeing quality of accounting information has aslight effect. But also to strengthen the construction of the system in some areas, improve theinternal control system and risk assessment information communication system.Papers internal control and the role of accounting information in theory put forward new ideasand methods.â‘ Theoretically systematically analysis of the purpose of accounting informationand internal control, proposed two "fit."②Proposed internal control of accounting informationreliability "guarantee" the role of accounting information on the relevance of "enhance" the role ofaccounting information from the reliability and relevance of the quality characteristics of both. Reliability of accounting information by independent correlation relationship between discourse,respectively combining reliability and internal controls related to the direct and indirect assessmentand evaluation of internal control, internal control empirical influence on accounting information.The innovation has a basis in the prior study.Paper provides the theoretically basis for internalcontrol of accounting information and establisha system of internal control to analysis theaccounting information. And in this crucial period of the existing analytical framework for theinitial establishment of the internal control system, internal controls make a positive testto achieveits stated goal. Our paper provides a reference for internal development and institution buildingcontrol theory; and provides a new way of thinking; the quality of accounting informationforChina’s capital markets; and make a contributionto maintain China’s capital market stability andpromote economic development. |
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