Research On The Relationship Between Internal Control And Quality Of Accounting Information

The accounting information is the basic of wealth distribution, of investment decision, is the important part of security market information. The truthfulness of accounting information can affect the fairness and efficiency of economy. There are more and more companies, both at home and abroad, which have produced false accounting information. These actions not only make lose to the company itself, but also lead people lose heart to the capital market. The effectiveness of internal control can decide the quality of accounting information. The research of internal control is a hot field of financial accounting research. The completeness of internal control can protect security of assets, can produce high quality of accounting information, also can ensure to realize the goal of company. So the internal control is playing a more and more important role in corporation management. It can help to realize reliable accounting information.Firstly, the paper summarizes the relevant research of internal control and accounting information and then makes commentary. Secondly, analyze the relationship of internal control and accounting information on the theory basic from three points—the goals, agency theory, the internal control factors. This part can provide theory support to the coming empirical analysis. Thirdly, analyze the relationship of internal control and accounting information by empirical method, and come to a solution that the improvement of internal control can promote the improvement of the quality of accounting information. Last, according to the above analysis and results, this paper makes some suggestions on how to improve the internal control. Then point out the deficiencies of this research.The main contribution of this paper:Firstly, according to the institution environment, this paper does a research on the relationship of internal control and accounting information and it means a lot to the listed companies both in theory and practice fields. Second, this paper provides a new idea to the research of this relevant field by using empirical method.