Ralated Research Of The Quality Of Internal Control Information Disclosure And Financial Reporting Reliability

The global economic crisis occurred in2008, thanks to the government's macro-control, the Chinese economy was thriving while others are not. The loose monetary policy measures made the2009's and2010's GDP grow very well, Internationalization of the RMB was on the agenda, the GEM was very crowded, overseas listing climax constantly,"real estate" became the top-ranked keywords. In the complex environment, variety of control policies made the stock market volatility again and again. At the same time, the number of listed companies in a variety of scandals also frequently appeared, such as "Mayun-event made executives resign," food safety issues, overseas listed companies suffered by public prosecution frequently... People easily doubt the internal control of the major companies, which attached great importance to cause regulators and investors.As an important part of the non-financial information, internal control information not only reflects the internal control situation, but also reflects the company's development potential and future value, to make up for its defects that financial information can only indicates the past performance of companies, and to influence people to judge the reliability of financial information. In theory, a sound system of internal controls can provide reliable protection for financial reporting and related information. A variety of internal control regulations of listed companies were adopt continuously. These regulations required listed companies to mandatory disclosure firstly, then put forward disclosure rules, which regulated the form and content of listed companies'disclosure, and help the company establishing an effective internal control system. So whether the company is seriously implement the provisions of internal control, whether the situation of internal control goes well, whether "Internal Control Self-Assessment Report" the company disclosed has information content, to guarantee the quality of financial reporting, which has become the new hot spot for concern as well as this article tries to solve and to answer.Firstly, the mainly method is Delphi questionnaire. This article is based on "The Basic Specification of Internal Control'", builds the evaluation system, and scores the Shenzhen board sample companies in the year of2009and2010, in order to consider the decree implementation and internal control construction. Results show overall construction conditions within this two years is poor, and the situation of2010is not better than2009significantly greater. Maybe due to that internal control of the building is a long process. At the same time to give advice on the disclosure of the phenomenon observed from three angles of the enterprises, regulators and investors.Secondly, this article chooses Accruals quality to represent the quality of financial report, establishing regression model, but results show no obvious relationship between the two variables. In order to further considerate whether internal control disclosure contains enough content, whether the situation of internal control building affects the performance of the company, This article continues to choose EPS as the dependent variable, the index of internal control as one of the independent variables, to build another regression model, results show that the quality of internal control promotes the performance of company significantly. Consolidating the two models and concluding that the quality of internal control information disclosure cannot guarantee the quality of corporate financial report, but can affect the performance of the company; for users of external report, good quality of internal control information may transfer the good performance of company, but the results may be unreliable.Finally, based on conclusions of this study and current problem, this article gives recommendations from three angles of companies, regulators and investors.