Improving The Internal Control Of Enterprises To Govern The Accounting Information Distortion

Along with the deepening of China's reform and open policy and the gradual development of the market economy, the quality of accounting information is particularly important in the economic life. Management, investors, creditors and employees pay extensive attention to it. While China speeds up the pace of building a modern enterprise system, accounting information distortion has become the very prominent issue in the current economic life, and has seriously hindered the development of China's market economy. Therefore, how to solve the problem effectively which is the accounting information distortion has become the important task which our accounting profession, economic sector and even our country government must face.There are many reasons of the accounting information distortion .We usually discuss the issue from the economic and legal aspects , but the author intends to discuss it from the angle of internal control. It is for the purpose of causing enterprises to pay attention to the enhancement and the consummation of their own internal control system. This system can guarantee the effective operation of enterprises'economic activities, protect the security and the integrity of the property, and guarantee the factuality and the reliability of the accounting information.Perfecting the internal control system of enterprises has the extremely vital practical significance to guaranteeing the quality of accounting information, improving the structure of company governance and the accounting information disclosure system, protecting investors' legal rights and interests, restoring the confidence of individual and the organization investors, guaranteeing the effective operation of the capital market, and maintaining the economic order and the social order of the nation.Based on analyzing the conditions of the domestic and foreign accounting information distortion, the article explained the exploration process of the West to govern the accounting information distortion and analyzed the reasons of our country's accounting information distortion. From this the article proposed new angle of view which is look at the accounting information distortion from the angle of internal control. This article embarks from the different development phases of fundamental research of international internal control to help the people to understand the connotation of the internal control profoundly. The core part of this article is through analyzing intrinsic relations between internal control and accounting information quality, we believe that seeking the way by which we govern the accounting mistake and accounting fraud from the angle of internal control has theoretical significance. According to the COSO report which is the international advanced internal control pattern, about the overall frame request of internal control system, the article analyzes the flaws of our country enterprises which exist in these aspects which are the control environment, the risk assessment, the control activities, the information and communication, and the monitoring, and then offers some solutions that can improve internal control to restrain false accounting information generated.This article has adopted the gauge theory method. Suggest that there exists the problem of accounting information distortion in our country first , and then deduce out the train of thought about governing the problem from the angle of the internal control. The conclusion is that unceasingly consummating and strengthening the internal control system of the enterprise may reasonably guarantee the factuality and the reliability of the accounting information. The internal control system that this article has constructed satisfies the requests of US"Sarbanes - the Oxley Bill" to the overseas companies which go on the market in the New York Stock Exchange,and causes the board of directors and the high-level management level guaranteed to validity of the internal control system, thus provides the more real and reliable accounting information for the stock market.