Internal Control Auditing And Accounting Information Quality From The Perspective Of The Ultimate Controlling Shareholders

In recent years, financial fraud scandals during the domestic and international, the quality of accounting information has been widely questioned, seriously disturb the order of capital market, blow to investor confidence, as the government regulatory challenge. With the United States enacted the Sarbanes-Oxley Act forcing the listed companies to self-evaluate on the effectiveness of enterprise internal control and employ a certified public accountant to issue internal control audit report, the country all over the world begins to strengthen the supervision of the internal control of the listed company. China’s Ministry of Finance and other five departments jointly issued the" basic standard for enterprise internal control" in2008, then jointly issued the guidelines of enterprise internal control audit and suggestions, progressively implementation of internal control audit for listed companies. Internal control and audit to become the hot of our country academia and the practice circle pay close attention to.Based on the above background, we put the internal control audit of China’s listed companies as the starting point and researched the influence of internal control audit to the quality of accounting information in the background of the existing internal control audit system. At the same time, we tested the effect of different properties of ultimate control right acted on the two parties based on the perspective of ultimate control rights. Furthermore, we enriched the related literatures and provided evidence for the implementation of the relevant policy setting and it is revelatory of future study on the healthy development of the capital market.In a review of the literature and on the basis of the theory analysis, we selected non-financial companies listed on the Shenzhen stock exchange from2007to2010as samples and established a multiple regression model by means of data collection and analysis, and then draw a conclusion using the empirical method of descriptive statistics, correlation analysis and multiple linear regression. The level of earnings management obtained by modified JONES model is aimed at measure the quality of accounting information.Through theoretical analysis and empirical test, we draw the following conclusions:(1) internal control audit and publicize the auditing report will promote the listed companies to provide high quality of accounting information;(2) the listed companies whose ultimate control right is state-owned don’t weaken the facilitation of the audit of internal control acted on accounting information quality. Finally, we made relative suggestions and pointed out the limitation of the researches based on the above conclusions.