Analysis On The Relationship Between Timeliness Of Accounting Information And Effectiveness Of Internal Control

Internal control is a process, affected by an organization's Board of Directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: effectiveness and efficiency of operations, reliability of financial reporting, compliance with applicable laws and regulations. Internal control is crucial to the enterprise's management. COSO's internal control framework consists of five interrelated components: Control Environment, Risk Assessment, Control Activities, Information and Communication, Monitoring.Accounting information is valuable information provided by the accountants from dealing with and analyzing of the business. The effect of accounting information on internal control could be illustrated in two aspects: Information and Communication, as part of components of internal control framework are playing more and more important roles in internal control; accounting information is not only means of monitoring, but also means of communication.First of all, the meaning of accounting information and internal control are introduced. The paper tries to find the internal and natural relationship between information system and control system. And then the paper investigates the effect of accounting information on the effectiveness of internal control. In addition, the paper makes further illustration by giving two examples of the TCL Corporation. Finally the paper gives some advice on how to raise the timeliness of accounting information to improve the effectiveness of internal control.