The Evaluation Study On Effectiveness Of Internal Control Of Agricultural Listed Companies

The agricultural industry is the support industry in China’s economic development. The agricultural listed companies is a leader in advanced agricultural productivity enterprises as well as an important form of agricultural industrial management in China, what is more, it is the main force for Chinese agriculture to participate in international competition in the background of the WTO. Thus, whether the agricultural listed companies have sustainable development is not only the concern of the SFC market, but also the major issues of our entire national economy’s steady development, even it is a major problem in the process of agricultural industrialization in China. So, in terms of policy and funding, the agricultural listed companies got big concessions to support its faster and better development. However, many agricultural listed companies take "Agriculture" signs as a pretext to list so as to cheat state subsidies or preferential policy in the agricultural industry, making the funds blindly invest in other non-agricultural industries, leading the company to deviate from its main industry, together with internal control related systems and measures is not well enforced, and regulatory system does not play a role, resulting in agricultural listed companies in a variety of internal control weaknesses, so that internal controls exist in name only, which seriously affected the agricultural listed companies’core competitiveness to improve, the effectiveness of internal control is also very worrying. Therefore, in-depth study of agricultural listed companies’ effectiveness of internal control standards is especially important.Firstly, the paper studies five aspects, such as the research background, purpose and significance, research status in and out of China, research ideas and research methods, possible innovations point to introduce the overall framework of this paper; Secondly, beginning with the definition of concept of internal control and its effectiveness, introducing four theories related to internal control, and describes the methodological basis of this study, which provides a solid theoretical foundation for empirical research; Thirdly, defining the scope of agricultural listed companies, analyzing listed agricultural companies development and distribution in detail, which provides theoretical support for empirical research; Fourthly describing the selection of internal control evaluation principles and indicators as well as the building internal control effectiveness evaluation model to make the bedding for empirical research; Fifth, take27agricultural listed companies as a sample among three years which is year2008to year2010,making comprehensive ranking of the27listed companies in agriculture through the model calculations; Finally, according to the previous empirical results, making policy recommendations for agricultural listed companies internal to improve the control effectiveness level, and summed up the inadequacies of this study as well as future research prospects.