The Research On Internal Controlattestation Of Chinese Listed Company

In recent years, groups of large companies or industrial giants have been involved in fraud scandals, which made them go bankrupt one after another. In the final analysis, this is directly related to the irrational structure of governance and the flaws in the design and operation of internal controls. When flaws exits in the internal controls, companies need the involvement of internal control attestation as a way to promote enterprise's compliance management, so that the efficiency and effectiveness of production and operation can be ensured, and the authenticity of the information of the enterprise's financial statements can be further achieved. Therefore, CPA assumes the responsibilities to conduct verification of the company's internal control and issue an internal control attestation report. However, internal control attestation is still on experiment in China, so the research on this subject is necessary and urgent.At the beginning of this paper, the motivation of the title selection against the background of the policy was explained. Next, the researches of domestic and abroad internal control theories were contrasted, and several urgent problems were put forward. After analyzing divergences between the newly issued Internal Control Norms and Attestation Standards, the author gave some suggestions on the definition of the content, time, and responsibility of internal control attestation.In the third and fourth parts of this paper, the differences between the theory and practice of American and Chinese internal control attestation were expounded through contrastive studies and statistical analysis. Some merits of American Theory and Practice were presented. The general state of cases of internal control attestation in Shanghai stock market during recent years was statistically analyzed. As a result, since Chinese internal control attestation practice is still at the primary stage, lots of Norms and Standards are still being developed in the course of formulation and revision, and lack of uniform basis and standards for attestation resulted in a series of problems in attestation business.In the fifth part of this research, the author pointed out some problems and flaws in the practice of internal control attestation by a case study on a typical Listed Company. At last, the author made several key conclusions with a clear objective, which are as follows:Firstly, China should conduct internal control attestation based on three goals - the efficiency and effect of operation, the authenticity of financial reporting information, the compliance of the rules and regulations.Secondly, there are many divergences to be coordinated quickly between the newly issued Internal Control Norms and Attestation Standards.Thirdly, it was suggested that we should base on China's actual conditions and use the successful experience of USA in internal control attestation for reference. And a series of proposals for the research of relating policy and theory were made in this research.