Research On The Relevance Of Internal Control And The Company Earning Ability

Coming into the 21st century, the development of science of management lets the advanced management idea root in people's hearts, the management turns from extensive-like form to a mode of high efficiency and high quality, we may say that such idea has set the ideological foundation to the implementation of internal control, and promoted the development of internal control. On the other hand, along with the development and expansion of Stock market of our country, more enterprises joined in the list of quoted company, which exposes the phenomenon of financial corrupting practices. Once the enterprise had such negative news, it will possibly cause business failure. That is, financial corrupting practices causes development of the internal control from the reverse side.Because of all sorts of reasons, the internal control has the preliminary development in our country, but has still not caused the administrators'attention. Focusing on the value at present benefit, and neglecting enterprise's long-term development, is one kind of superficiality behavior, one kind of behavior that cannot be taken, it will possibly ruin the enterprise. At the beginning of the 21st century, loan crisis well known occurred because that the administrators pursued the short-term economic interest excessively and neglected the high risk which the high rate loan brings. Simultaneously it also reflected that the administrators neglect the internal control extremely.Starting from the interests of administrators——the economic interest, we are trying to seek for the relations between internal control and the economic interest, aiming to tell the administrators:The internal control has relation with the economic interest, and should be paid more attention. This article begins from the analysis of the theory of internal control and earning ability, firstly has analyzed the concept and development of internal control and internal control evaluation, the function of internal control evaluation, the principle of internal control evaluation, the content of internal control evaluation, the construction of internal control evaluating indicator system, the process of internal control evaluation and then establishes the model. Then it has analyzed the concept and the connotation of enterprise earning ability, the factors that influence earning ability, the earning ability indicator system's establishment principle and the assessment method. And then carrying on the cartography analysis according to the data of samples by the spss software, but we do not obtain the intuitive correlationship. Then we withdraw the composite index of the earning ability through the principal components analysis method. According to the on-line collective data, we figure out composite index of each samples'the earning ability. Then we carry on the Pierson relevance examination between the internal control index and the composite index of the earning ability, the conclusion is:The two indexes do exist certain correlationship. Finally, according to the real diagnosis conclusion we bring about some suggestions related the internal control.