Review,Operation And Study Of Management Evaluation On Internal Control Over Financial Reporting

There are long discussions and researches on Reporting on Internal Control over Financial Reporting from 1970s.A series of financial scandals such as the case of Enron lead to the release of《Sarbanes-Oxley Act 2002》,and Reporting on Internal Control over Financial Reporting lauchs lots of public attentions again.However, on the one hand ,most researches and studies fouce on the introducation and cost-benefit analysis.It is difficult to get more information on how management to evaluate the effectiveness of internal control over financial reporting and disclose Reporting on Internal Control over Financial Reporting and disclose.On the other hand,there has been a systemsic and comphresive study on how to design and operate the Reporting on Internal Control over Financial Reporting in China.This paper is divided into five chapters and is organized as follows: Chapter one is review.This chapter berifly summaries and analyses the references,at the standpoint of necesasity,cost-benefit analysis,Voluntary or legal,scale and basis,internal control framework and audit,and put forward the paper motivation and research objiectives.Chapter two is background of Reporting on Internal Control over Financial Reporting.This chapter introduces the reasons why Reporting on Internal Control over Financial Reporting become the legal obligation,the main context of《Sarbanes-Oxley Act 2002》,SEC actions an final rules which are to support the《Sarbanes-Oxley Act 2002》.Chapter three is process of evaluation on the effectiveness of internal control over financial reporting.Althought SEC final rules does not assert the requirement of process of evaluation on the effectiveness of internal control over financial reporting,a suggested process would be useful for managements.According to the researches of McGladrey&Pullen(2002)and KPMG(2003),we put forth a systemsic and comphresive process of evaluation on the effectiveness of internal control over financial reporting.Chapter four is framework of evaluation on the effectiveness of internal control over financial reporting.According to the COSO lastly report《Guidance for Smaller Public Companies Reporting on Internal Control over Financial Reporting -Integrated Framework》,and applies the internel framework into the evaluationg of the effectiveness of internal control over financial reporting,and put forth 26 control priciples which combine the internal control elements with evaluationg of the effectiveness of internal control over financial reporting.Chapter five is discussion on how to design and operate the Reporting on Internal Control over Financial Reporting in China.The discussion fouces on the 10 terms of Reporting on Internal Control over Financial Reporting in China,including:necesarity,Voluntary or legal,scale,schedule,reporting on internal contorl over financial reporting or operation,responsibility,internal control framework and audit。Contributions of paper can be berifly stated as follows:(1)From the standpoint of managements,the paper sets up a comprehensive process of evaluation on the effectiveness of the internal control over financial reporting in comformity with the researches form McGladrey&Pullen(2002)and KPMG(2003),and launches the attentions on the perparation and responsibility of the valuation on the effectiveness of the internal control over financial reporting,and applies the COSO latest research Guidance for Smaller Public Companies Reporting on Internal Control over Financial Reporting -Integrated Framework into the evaluation process.(2)Given the conditions of Reporting on Internal Control over Financial Reporting in China,the paper summaries the researches and studies and put forth a comprehensive system on designation and operation of Reporting on Internal Control over Financial Reporting in China ,in the term of necesarity,Voluntary or legal,scale,schedule,reporting on internal contorl over financial reporting or operation,responsibility,internal control framework and audit。...