Internal Control Over Financial Reporting: Paradox And Empirical

Based on the study of internal control theoretical research at home and abroad in recent years, this paper summarizes the historical development of internal control theory, aim to the direction of the following theoretical and empirical research. In the theoretical analysis, first of all, around the "asset protection" launched a legal case to explore the history, reviews the development of internal control over financial reporting theory, we conclude this opinion " internal control over financial reporting is a paradox"; secondly, followed the investigation of practice of this paradox, we found that internal control over financial reporting can not be separated from the internal control based on the horizontal and vertical research; finally, the logic investigation of the paradox point that "Internal Control Audit Guidelines" make a compromise, which means policy makers limited the scope of responsibility to protect the interests of the CPA. In the empirical research of this paper, based on the contents of the report, descriptive statistics include the index of control objectives, basis and institutional system. The outcome confirm that the disclosure of internal control over financial reporting of self-evaluation reports and disclosure of internal control self-evaluation reports are no significant difference on disclosing internal control information.This paper also include an extension of research on internal control over financial reporting problems, using factor analysis examined the factors which affect the disclosure of this report. Finally, this paper point that "Internal Control Audit Guidelines" should no longer distinguish internal control over financial reporting and internal control over non-financial reporting, and directly located on the audit of internal control.