The Analysis Of CSA In China's Listed Companies

After series of financial scandals, such as "Enron" and "WorldCom", was revealed, the international capital market suffered a serious blow. After that, the U.S.Congress promulgated the "Sarbanes Oxley Act of 2002" in July, 2002.(SOX in abbreviated). One of the core provisions of the bill, which is SOX Section 404, required the authorities of public companies to do internal control self-assessment of their companies and disclose the reports of the assessment. The SOX Section 404 indicated the arrival of mandatory disclosure of the internal control information.In china, the Shanghai Stock Exchange and Shenzhen Stock Exchange issued the "Guidelines on Internal Control of Listed Companies" in June and September, 2006. The guidelines required listed companies of China to do internal control self-assessment and disclose the information related to internal control. CSA is an important concept and method which improves the efficiency of the operational management of listed companies. China's listed companies must recognize the importance of the implementation of CSA from a strategic height.This article seeks to provide theoretical support and practical guidance of the implementation of CSA. Firstly, I searched the literature, on which I reviewed the recent studies of CSA. Secondly, I analyzed the relation and distinction between internal control external-assessment and self-assessment, and between internal auditing and internal control self-assessment, which clearly defined the concept of CSA. Thirdly, I analyzed the existing norms related to the implementation of internal control self-assessment on listed companies in China, after which I analyzed the main features of the implementation of CSA in China's listed companies. In the last, I try to set the overall framework for the implementation of internal control self-assessment, which includes the scope of the assessment, the subjects of the implementation, the time of assessment, the methods of assessment, the report of CSA.