The Study Of The Evaluation System Of Internal Control In Enterprises

At the beginning of21century, as a series of accounting frauds in company broken out, the authorities,theorists and practitioners in the worldwide turn their attentions to the effectiveness of internal control inthe same time. In2006, two stock exchanges in our country made the regulation that company listed instock market must disclose the evaluation report of internal control. In2008, China’s Ministry of Financejoining hands with China Securities Supervisory Commission, the Audit Commission, China BankingRegulatory Commission and China Insurance Regulatory Commission officially released the《Basic Normsof Internal Control》and its supporting guidelines, it requires listed companies’ evaluation of internalcontrol report must be audited by CPA and be disclosed with auditing report. It indicates that our internalcontrol system has been basically completed. The degree of perfection of internal control depends deeplyon the evaluation of internal control. However, we discover that the evaluation of internal control reportand execution of the《The guidelines for evaluation of internal control》in listed companies still not perfect.The main reasons for this phenomenon are the lack of internal control evaluation system and evaluationmethods. The《The guidelines for evaluation of internal control》is not feasible. Therefore, the prospect ofevaluation of internal control of listed companies in our country is still not optimistic. In this case, the studyof evaluation of internal control has theoretical and practical significance.The third chapter of this article analyzes the present situation and its reasons of the evaluation ofinternal control of A-share listed companies in our country, and then this chapter describes these reasons asexternal and internal reasons. The fourth chapter focuses on the evaluation system of internal control oflisted companies in China. Firstly, for the principles of importance, the author proposes the concept of theintegration for the evaluation of internal control and risk management and discusses the path of integrationfrom the macro and micro. Secondly, according to goals of the internal control, the author points out thatthe evaluation system of internal control should include three parts: results indexes of evaluation systembased on internal control targets, indexes of evaluation system in macro level of company, indexes ofevaluation system in micro level of company and selects quantitative indexes and qualitative indexes ineach evaluation system. Lastly, this article discusses the level of standard for internal control deficiencies. The author divides the internal control deficiencies into two parts: the design deficiencies and operationaldeficiencies. After that, the author divides the operational deficiencies into two parts too: the financialreporting internal control deficiencies and non-financial reporting internal control deficiencies, and thenidentify the effectiveness of internal control according to different internal control deficiencies level.