The Research On Internal Control Audit From Annual Report Of Listed Companies

As we all known, no matter in the capital market of USA, or in China, all broken out some serious financial fraud floods. Although the background and reasons of these events are complex, these events have some common reasons. For example, internal control failure or defect, lack of external oversight and evaluation of internal control, audit control are not in place and the enterprise risk management is not in place and so on. These large enterprises fraud scandal shocked the world, and internal control failures led to the failure of a major companies'vicious events. So some domestic and international laws and regulations on internal controls were introduced. Increasingly strong demand for internal control lead to the government's emphasis on internal control so much. At the same time, the research on the theory, practice and policy of internal control audit innovate continuously, and made a series of important advances. But in our country, we have no Internal Control Auditing Standards to guide CPA to do internal control auditing. So internal control audit are Scattered and discontinuous. The implementation of existing Internal Control Specifications and Guidelines is also inadequate power. And there is no unified view on audit basis, audit object, audit range, audit program, audit method and so on.So, this article is based on"The Basic norms of internal control","Guidelines on Internal Control Assurance"and"Internal Control Audit Guidelines", using theoretical analysis method, inductive analysis and comparative analysis method and so on, to study the basis of Internal Control and Audit theory. By introducing the meaning and history of internal control and internal control audit, to explore the significance of internal control and internal control audit. Then, by comparative analysis the status of related internal control internal of Shanghai Stock Exchange main board listed companies'annual report in 2008,2009 and 2010, I found there are some confusion in the internal control audit of listed companies, for example, the disclosure report name, the way to express their opinions, audit range, audit program and audit method and so on. So, on these basis, we need to develop Internal Control Audit Standards as soon as possible, and make recommendations on basis, range, program and method of internal control audit. Then we can improve audit quality and audit efficiency, reduce audit risk, and give full play to the role of the internal control audit function and improve the role of internal control audit and supervision.