Internal Control Evaluating Indicator System Of China's Listed Companies

At present, The impact of this financial crisis is so broad, unprecedented extent. It has seriously affected the economic development entities. When the financial crisis germinated, the vast majority of economists, entrepreneurs, governments have failed to fully foresee the crisis is so serious. When people reflect on the reasons for the crisis, weak financial supervision and management bear the brunt of the blame once again.It should be noted that the overall enterprise risk assessment, control, not only to the healthy development of enterprises are a necessary condition for the prevention of financial crises at the same time an effective means. To deal with risk, internal audit as an effective means of unprecedented attention. At the same time, the external audit of risk has entered a new stage, a certified public accountant will be more attention to the possible risks faced by enterprises. Section 404 of the Sarbanes-Oxley Act provisions - the management's assessment of internal controls - the annual report prepared at the request should include an internal control report.In this way, a number of causal contacts exist between the views of the external audit and internal audit performance. This article is based on an understanding of the external auditor from the audit report issued to start, on a non-standard audit opinions issued by the company's internal control system to evaluate the effectiveness of its implementation. Empirical analysis we have adopted, selected the 2007 non-standard audit opinion was issued by listed companies for the study sample with reference to COSO "Internal Control - the overall framework" of the sample companies to control the internal control environment, risk assessment, control activities, information and communication, monitoring the five elements of analysis. Set up an internal control system in line with the target of evaluation, evaluation of non-standard audit opinion was issued by the company the overall level of internal control. Evaluation of internal controls in line with the target system is divided into five steps:(1) According to COSO "Internal Control - the overall framework for" models, elements of internal control in accordance with the internal control of enterprise contents were classified , to determine the observation variables, to design "of internal controls in line with the score sheet."(2) From financial reports of listed companies, we collected and resorted observation variables(3) each observation is converted to the observed value of the standardized scores of individual enterprises in the second step.(4) using factor analysis, we will analysis the observed variables.(5) we will analysis the impact of internal controls for the main factor, in order to reveal the existence of the internal control problem, the measures to deal with these issues.The main innovation lies in the fact that we select the views of non-audit listed companies as a sample, using principal component analysis of the impact of internal control into the main factor, in accordance with the COSO model aimed at the overall evaluation on non-standard audit opinion was issued by listed companies in the implementation of internal control system and its effects. The whole point of this study was to evaluate an innovative research.