Research On Quality Of Internal Control And Management Fraud Of Listed Companies

With cases of fraud surfaced, the losses caused by fraud and influence are alarming. Most fraud cases are distraughtly carried by managers of these companies, the cheating methods of managers aroused great concern. Most basic faction of internal controls is expected to prevent fraud, in reality, it is urgent to verify whether the internal control function of the expected.In this paper, results of recent studies are reviewed based on the combination of internal control and system theory background, the integrated use of principal-agent theory, contract theory, the use of AHP, efficiency coefficient method, standard method, empirical analysis and other research methods, along the'theory - empirical research– Strategies'study line, obtained with a certain number of theoretical and practical value of the opinions and conclusions.Initially, It stated theory of fraud management and internal control. The Economic Analysis of internal control is described, followed by fraud on the manager's motivation for the institutional analysis.Secondly, It established a goal-oriented quality evaluation system of internal control. Efficacy coefficient method by corrupt corporate executives and paired samples of data, with the AHP weights calculated, the internal control of listed companies obtained quality score, build quality evaluation system of internal control.Finally, empirical studies had examined the quality of internal controls for the inhibitory effect of management fraud. Testing hypotheses through empirical research, obtained the following conclusion: Effective management of internal control can suppress fraud; goal-oriented quality evaluation system of internal control can effectively measure the level of internal control; internal control evaluation system has yet to be improved.In addition, the theoretical analysis and empirical analysis on the basis of theory with practice, to improve internal control policy recommendations, included improving corporate governance, improving internal control environment and establishing appropriate internal control system, etc.