An Audit Problem Of Internal Control Over Financial Reporting Of Listed Company

Perfect internal controls can reasonably assure the reliability of financial statements. In the early twentieth century, a series of financial fraud of Enron, WorldCorn and lots of famous companies broke out in the United State. One of the causes is the failure of internal controls. So United State enacted "Sarbanes-Oxley Act" in2002. The bill requires the management section to disclose the report of internal control self-assessment. At the same time, the Act requires the registered CPA to audit the report of internal control self-assessment by the management section. In recent years, we also benefit from the relevant measures and actively promote audit of internal control over financial reporting. From the development of audit practice at home and abroad, audit of internal control over financial reporting is an important direction of the audit. However, audit of Internal Control over Financial Reporting is a new engagement of audit. Launching this service will produce far-reaching impact on capital market and audit theory, which is also the value and significance of this paper which studies audit of internal control over financial reporting.This paper can be divided into the five parts:first, the paper is to study the theory of audit of internal control over Financial Reporting, which includes related concepts, character and the theory system of audit of internal control over financial reporting. Secondly, the paper focuses on the history of audit of internal control over Financial Reporting. It also shows the necessity of audit of internal control over Financial Reporting in china. Then, based on the latest data of audit of internal control over financial reporting on lots of listed companies, the paper analyses the actuality of the audit of internal control over Financial Reporting by statistics. It also pointed out the problem and analyzed the cause. Finally, this paper describes the improvement measures of audit of internal control over Financial Reporting.From the research of the five parts, we can found that audit of internal control over financial reporting has its own characteristics. We can also recognize that it is the right choice to us to promote audit of internal control over financial reporting actively. In addition, from the analyses of the actuality of the audit of internal control over Financial Reporting by statistics, we can found that the performance and control properties of listed companies can determine whether carry out audit of internal control over financial reporting or not. In addition, it is the low level to issue the audit reports of internal control over financial reporting in china. Finally, this paper describes the improvement measures of audit of internal control over Financial Reporting through the perspective of the listed company, the CPA and external environment.