Research On The Management Reporting And Auditing On Internal Control

In recent years, whatever in the developed capital market of the united states, Europe, or in capital market just the beginning of china, a series of spectacular events are in the fraud. After series of financial scandals, such as "Enron" and "WorldCom" was revealed, the international capital market suffered a serious blow. After that, the U.S. Congress Promulgated the "Sarbanes Oxley Act of 2002" in July,2002. (SOX in abbreviated).Two of the core Provisions of the bill, SOX Section302, required the authorities to evaluate the effectiveness of the internal control in the annual and quarterly report and reporting; SOX Section404, in the listed company's annual audit reports of the united states,the auditor must review and report to management and financial reports on internal control effective appraisal. SOX Section302&404 indicated the arrival of mandatory disclosure of the internal control information.On 8th, December 2006, the China Banking Regulatory Commission passed Commercial Banks'Internal Control Guidelines, in order to promote commercial banks to establish and improve internal control, avoiding financial risk and ensure safe operation of a solid banking system. But no detailed rules of evaluation report on commercial banks' internal control.On 28th, June 2008, five ministry including Ministry of finance published The Basic Norms of Corporations Internal Control, Demand the listed company do a self-evaluation on the effectiveness of internal control. Disclose the self-evaluation reports. And employ the intermediary institutions with professional qualification of securities, futures business to audit the effectiveness of the internal control.On 15th, April 2010, the five ministry published 18 application guidelines including Corporations Internal Control Application Guidelines NO. 1,---organization structure. Corporations Internal Control Evaluation Guidelines & Corporations Internal Control Auditing Guidelines It gives the Reference format of Internal control of the evaluation report and Internal control of the audit reports with 4 different opinion types.The commercial bank is a special industry with high debt, high risk, run the currency and easy to be the aim of the crime. In order to keep out and resolve the financial risk, accelerate the financial system reform in our country and promote our commercial banks' prudent operation, it's critical to built a Perfect inner-control regulation which appropriate to the business and the scale.Then, what's the practical application situation of basic norms on the commercial banks? The survey of the listed commercial banks internal control self evaluation report and its audit report on internal control indicates that it's gradually standardized but still exist many problems. Such as the report name, appraisal target, Scope of evaluation, evaluation criteria, conclusion of the evaluation, disclose internal control problems or not, the defects of the report etc. If the report was audited by CPA, the scope of auditing, the name of auditing report etc. They are very differently. Because, there is no unified and specific rule. On the base of the new Guidelines, the writer put forward some suggestions specifically against these problems, expecting to provide practical guidance for internal control self-evaluation report and auditing report.