The Research On Internal Control Of Chinese Listed Enterprises Based On SOX

The issue of internal control is a world-wide problem. In many countries, internal control criteria of establishment and assessment have laid down. Specially, listed companies in USA should submit an annual report to SEC which shall contain an assessment of the effectiveness of the internal control structure and procedures of the issuer for financial reporting as required by the Sarbanes-Oxley Act of 2002. Domestic enterprises are now facing the challenge.The writer chooses the annul reports of 41 listed companies and summarizes five main internal control issues, which are uncompleted record, lack of finance specifics, the problem of the information system, lack of internal auditor department, the consequences of internal control issues, then discusses the reason of these issues and give the suggestions.The shinning points of the article are as follows:1) New Content. The background of the article is COSO frame (1992) and SOX (2002), which are the key discussion points in the internal control area. The cases in the article are from most recent annual report. It must help the work of internal control analysis.2) New Step. The article combines the theories and the examples. That is, the writer raises five main internal control issues, and gives the answer considering the SOX, the COSO frame, the law regulation, the CPA Guide and the experience.3) New Usage. The article raises the suggestions for government, CICPA and the enterprises. First, the government should standardize the internal control frame; Secondly, the CPA should promote the frame; Thirdly, the companies should set up the internal control system based on the business culture.The article, researching on the internal control issues of Chinese companies listed in USA, raises the suggestions for main problems in those companies and for the regulation in China. Meanwhile, it will also help the companies who are interested in strengthening internal control or preparing to list on other security exchange commission.