Internal Control And Financial Reporting Quality

The financial crisis in2008has not dispersed yet,followed by the European debt crisis intensified, with the continuous deepening of the financial development and the acceleration of the pace of internationalization of China’s economic, China can no longer exposure to the world economic crisis.Since the1980s,a series of new financial risk frequent incidents of unlisted trading in U.S. Treasury bonds events,such as index futuresled to the collapse of Barings Bank,UK events,Japanese banks in1995Leeson illegal operations.The end of2010"12·6" Jinan large forged financial instruments case shocked the industry,Qilu bank executives and government officials,corporate officers of colluding with each other,high interest Lanchu for bait,forgery of financial instruments,the amount of money involved is still not clear.This series offinancial shocks,the common reason is that internal control failures,academia and practice is very urgent to strengthen the effectiveness of internal control of commercial banks,many countries have increased the requirements on commercial banks’internal control.Chinese scholars study the internal control of commercial banks in recent years is gradually warming up,but still in its infancy,and very little empirical research,this article from a commercial bank internal control over financial reporting quality to start further research on China’s internal control has an important reference.To the China Banking Regulatory Commission promulgated on July3,2007"Guidelines for Internal Control of Commercial Bank",Guidelines on the effectiveness of internal control of the banking sector, and through empirical methods of test "guidelines" for commercial banks the impact of the quality of financial reporting,internal control system of thought that China’s commercial banks to implement the effect studies provide empirical evidence to contribute to the perfection and improvement of our country to further improve the internal control system of commercial banks.This article is divided into five sections:Introduction of the first chapter,first described the background and significance of this study,set basis points for the study of later chapters.Literature review of internal control in the second chapter of the commercial banks.This chapter from the commercial banks’internal control of the quality of financial reporting of commercial banks,commercial banks’internal control and quality of financial reporting relationship of the three aspects of domestic and foreign literature were reviewed to provide a course of development description for China’s commercial banks’internal control.The third chapter studies the theoretical basis.This chapter affect the quality of financial reporting factor analysis,analysis of the quality of financial reporting standards,internal control and financial reporting quality of relations and the commercial banks’internal control guidelines elaborated on the quality of financial reporting mechanism of the internal control of the basic theory. Provide a solid theoretical foundation and basis for empirical research.The fourth chapter of the study design,this chapter selected for the2003to2010,16major commercial banks before and after the implementation of the Guidelines,the internal control over financial reporting quality influence empirical research. Three assumptions,and regression testing. The fifth chapter of the policy recommendations,research limitations and future prospects.Internal control system for China’s banking industry is not perfect,information disclosure,the method of the limitations of factors to make a suggestion for control study on the expansion idea,perfect for the related systems play an active role within the banking industry for our future.In this paper,the author concluded:Although the quality of financial reporting to enhance the commercial banks’internal control guidelines for the banking industry to play a role,the specific performance to enhance the effectiveness of the loan loss reserve,and profit ability sustained capacity improved,but the robustness of accounting has decreased,I think the reason is that China’s system of internal control policies from different departments,the system of coordination between departments,resulting inconflict and contradiction between the system and internal control and supervision mandatory factors may also lead to the banking internal control reporting, disclosure,lack of motivation.The main contribution of this paper is mainly reflected in:This paper uses empirical research methods,data model to demonstrate the introduction of this policy implementation effect.Through out the country the existing research results,yet the scholars of the introduction of the system,and related empirical research,so that the premise of text has a certain degree of innovation,research perspective,followed by policy,the results have a certain timeliness.Commercial internal control and quality of financial reporting,with some innovative characteristics of a strong banking industry,banking internal control high requirements,commercial banks internal control guidelines for the implementation of the effect test to other internal control of the industry study has important reference value.The research limitations of this paper is mainly reflected in:research methods,empirical methods and external data to be tested,but the subjective rating of the regulatory authorities of the internal control can not get some regret for this article.In the conclusions of the study.only a simple multiple regression equations were compared,only based on the regression coefficients and T-test to judge the impact of the internal control over financial reporting quality,this approach is not comprehensive enough,there are some limitations.The limited number of listed banks in China,state-owned commercial banks,joint-stock banks did not distinguish between research on the reasons for this situation is not deep enough to be in the future follow-up study.