Study On Evaluation Of Internal Control

The evaluation of internal control means to analysis and evaluate the rule of internal control from different aspect, including the integrality and rationality& validity. According to the different status in using, it can be divided into two forms, including the evaluation of internal control used in audit of financial statement and evaluation of internal control for special purpose. For the former, it has been used as a method in auditing, in the other; it has been used as a purpose to testify whether the rule of internal control of corporation is efficiency.Evaluation has been used as a scientific method applying in audit for a long time, with the internal control became more and more important, evaluation has been used for a special purpose independently, and which is the main meaning in the article.The article has three parts: the first part summarize the concept of internal control and the evaluation of internal control, the second part explain the development history in aboard country especially in U.S.A, and the third part analysis the problems existed in the development of evaluation of internal control in our country, at the same time, the article put forward the relevant measures to solve these problems. The following is the viewpoints of the article.The first part summarizes the internal control and evaluation of internal control, introducing the four stage of the concept of internal control, and analyses the action which has been brought about, everything has two sides, and therefore, the article discussed the localization of internal control. At the first part, the article discussed the concept, purpose, standard, the procedure and measures of evaluation of internal control, and discussed who perform the evaluation; the evaluation of internal control is developing constantly, therefore, the article analysis the function and risk of evaluation of internal control.The second part makes a study on the process of internal control and evaluation of internal control, and describes the gradual evolution in three main countries or regions, including U.S. A, Japanese and Taiwan of Chinese. In addition, the article has introduced the latest research results of evaluation of internal control in USA: including the "internal control -integrity framework" and "Public Company Accounting Reform and Investor Protection Act of 2002" and the relevant rule which has been put out by SEC and AICPA. In the last, we get the enlightenment which has been made on the basis ofthe discussion of COSO and the latest study of evaluation of internal control in detail, In addition, the article reviews the new achievement and process of evaluation of internal control in our country.Based on the analysis of the development of evaluation of internal control, the third part clearly analysis the problem that existed in the development of evaluation of internal control in our country, for example, the concept of internal control is out of date, the aim of internal control is limited, the element of internal control need to be updated, and many rule of evaluation of internal control which issued by different department of government is inconsistency or contradictory. In addition, it is urgent to set up a professional standard to evaluate internal control to meet the need of management of enterprise. Furthermore, the article put forward the relevant measures to resolve these problems. In the last of the article, it put forward some suggestions to improve the development of evaluation of internal control through the comparison between corporation governance and evaluation of internal control."Sarbanes-Oxley bill" was issued by U.S.A because of the exposure of financial scandal of Aaron and other company, in the Act, It requires the listed company to offer report to evaluate the internal control of corporation made by the management, and the report must be audited by certified public accountant. Subsequently, the relevant of criteria and regulations has been issued by SEC and AICPA. The evaluation of internal control has become one o...