Research On Auditor's Report On Internal Control

In recent years,financial fraud floods the capital market all over the world,no matter in USA,Europe,or in China.The financial fraud such as Enron Corporation,the WorldCom bankruptcy as well as China's Lam Tin scandals-outbreak,which obviously dampened the investors' confidence in the management of listed companies.There are many reasons for financial fraud,in which the absence or failure of internal control is a very important one. Effective internal control is the first or maybe the last line to prevent financial fraud.After the baptism of the scandals,the internal control is being attached importance renewably.The Certified Public Accountants commence to has the responsibility to perform inspection for the internal control and issue auditor's report on internal control("ARIC") to the investors.How to prescribing an appropriate auditor's report format is likely to add value on ARIC? How about the readability for ARIC? How to shorten the expectations gap between auditors and users? These are what this dissertation wants to answer.This dissertation consists of five parts:Introduction.This chapter describes the research background,research methods& contents,takes a brief review of literature research on ARIC from home and abroad and then finds out the breakthrough part of this dissertation.Chapter One the fundamental theory of ARIC.This chapter analyses the definition,an analysis for demand and supply of ARIC and the objective and principle of ARIC,which pave the road for the next several chapters.Chapter Two the compile method of ARIC.This chapter firstly described the method to compile ARIC and then constructed the detailed ARIC compile method based on the research on ARIC from home and abroad.The author obtains the opinion and advice from each class of people by questionnaires.Chapter Three a study case on listed company in China.In this chapter,the author analyses a study case relating to the disclosure of internal control and then takes a descriptive analysis for feasibility and advantage of detailed ARIC.At the end,according to the study case,the author puts forward some suggestions for improving disclosure of internal control in ARIC.Chapter Four conclusion and suggestion.In this chapter,we summarize this dissertation,point out the limitation and put forward some suggestions. A little academic contributions:(1) study of the Fundamental Theory of the audit report for internal control;(2) study of prospectus and some suggestions for improving detailed internal control information disclosure.