The Impact Of Internal Control Disclosure On Earnings Management

The COSO report suggests that one of the objectives of internal control is provide reasonable assurance to ensure the reliability of financial data. Therefore, high-quality internal control prevents managers from the control of financial reporting information, the disclosure of false financial information to earnings management behavior. However, there is little research in this area in China. Based on the signaling theory, the disclosure of internal control self-evaluation, assurance of internal control report and《the Basic Norms of Internal Control》, using the research method and empirical research method, we analysis the relationship between the disclosure of internal control and earnings management in A-share listed of 2009. The result showed that the disclosure of internal control self-evaluation report of the company's earnings management was significantly lower than other companies; internal control disclosure has played a role in inhibition of earnings management.