Study On The Relationship Between The Internal Audit And Earnings Management Of China’s Listed Commercial Banks

Earnings management is the company’s management allow for their own interests to have a purpose under the accounting standards, and through the accounting policy choices, or other means to not disclose the objective of the accounting information. Earnings management is appear in the general enterprise, but due to the particularity of the banking sector, earnings management is always exists, but research has always cannot involved in banking related to the particularity of banking, while, Commercial banks have in a very important position in our country socialist market economy, the stability of the banking industry will directly affect the stability of the whole national economy in our country. Therefore, research about commercial bank earnings management level of it is very urgent in our country. There are many factors which can affect the level of corporate earnings management, but internal audit in corporate governance assure report information objectively, and the function of alleviating the degree of earnings management. In this background, as point of the relationship between Commercial banks earnings management and internal audit, this article select the relevant data of China’s listed commercial banks, by the multiple linear regression analysis of the internal audit and earnings management, normative research and empirical research the combination of China’s listed commercial banks’ internal audit quality and level of earnings management. Finally, for the analysis of the status and the current situation of Internal Audit and earnings management of listed commercial banks, this article provides some relevant policies recommendations to improve the internal audit of China’s listed banks.