The Influence Of Sarbanes-Oxley Act Section 404 On The Internal Control Of Chinese Enterprises

In 2002,the outbreaking of the Enron case caused the United States Congress to enact the "Sarbanes Oxley Act ". The core of the act is to strengthen the internal control of listed companies, and enhance the company management`sresponsibility of the financial report, which mainly reflect in the Section 404. Sarbanes-Oxley Act rules that the forgeiner listed companies are required to comply with Section 404 in the fiscal year after July.15. 2006 .This dissertation based on the research of internal control theories and the Sarbanes-Oxley Act Section 404 , described that Chinese listed companies in the United States how to compliance the Section 404, and analysed China's internal control environment foundation , at last gave some advice for the establishment of Chinese internal control framework. The purpose of the study is to help China's listed companies in the United States compliance this act better, and provide suggestions the for Chinese overall framework of internal control. This paper`s research methods included case analysis,induction,comparative analysis, illustrating, graphs and charts.Because Sarbanes-Oxley Act has experienced for a short time,its impact has not yet fully appared. This paper elaborated on the impact of the act`s compliance process and the changes after the end of the theory of reasoning and judgement, the reaction of these effects and what are the implications will need time to test,so it has made a follow-up topics of this paper the significance of the study.