Internal Control Evaluation Method And Case Study Based On Self-management

Abstract:Because of domestic and international frequent accounting fraud, the government departments attach great importance to the enterprises’internal control. The releasing of the basic norms of internal control and the internal control supporting Guidelines, together constituted our internal control system of norms. From January1,2012, the Shanghai Stock Exchange and the Shenzhen Stock Exchange Main Board-listed company carried out it. The first time within the jurisdiction of the Evaluation of Internal Control included in the regulations is enough to see that our government departments pay great attention on internal control evaluation. The evaluation guidelines require listed companies to disclose internal control evaluation report in the annual report; the internal control audit report also should be disclosed or submitted.Evaluation of the effectiveness of internal control is an important and integral part of the internal control implementation process. Internal control self-assessment research has an important significance to improve the internal control system. It also strengthens the effect of the internal control projects being carried out in China.The past internal control evaluation relying on internal audit has some insurmountable limitations. The evaluation method based on self-management refers to corporate boards, audit committees, managers and all employees directly involved in the evaluation of internal control design and implementation. It’s the integration research for self-improvement and report purpose to evaluate internal control. It not only help managers to understand the company’s internal control objectively and comprehensively, but also able to meet the requirements of regulatory authorities.Control self-assessment (CSA)first proposed by the auditors of Canada Bay Company can effectively compensate for the inherent defects of the traditional internal control evaluation, taking into account the "hard" control and "soft" control, effectively enhance the internal control environment.Control self-assessment has been widely used in the United States, Britain, Canada and other countries. The academia and the specification makers attach great importance to it. The second part of this thesis is the related concepts of control self-assessment and to lay the foundation for the study below.The third part analyzes internal control evaluation of China’s listed companies. First we know internal control implementation in listed companies in China, and begin to understand the problems of listed companies in internal control building. Then I taking listed companies of Shanxi for example analyze of the status of the internal control evaluation of listed companies, as well as shortcomings.The fourth part of the paper builds a control self-assessment system and program implementation to overcome the lack of internal control evaluation of listed companies in China. It covers the objectives, principles, methods, standards, and evaluation index system and control self-assessment report. The fifth part refers to H Company using the case of the CSA, aimed at promoting the use and development of the CSA in China’s enterprises to establish investor confidence in capital markets. Part VI is a summary of the full text and research prospects.