The Study On Internal Control Auditing Of Enterprises In China

In2001, Enron’s financial fraud aroused widespread concerns and discussions, and then the United States formulated the "Sarbanes-Oakley act" in2002. It not only requires the listed companies to disclose Management Reporting on Internal Control, but also requires the certified public accountants to audit the reports. In2004and2007, AS2and AS5were released, providing guidance for certified public accountants to audit the internal control. In2008, China promulgated the "Basic Standard for Enterprises Internal Control ", and "Audit Guidelines for Internal Control" were also issued in2010. These standards and guidelines made great contribution to the construction of internal control auditing. In October11,2011,"The Implementation Opinions on Audit Guidelines for Enterprise Internal Control" made more specific provisions for the internal control auditing in china. The companies listed on main board were required to disclose audited "Management Reporting" since January1,2012. This will further promote the development of internal control auditing in China. However, research on the internal control and internal control auditing started relatively late in our country, so there are still a lot of difficulties and problems to solve.First of all, this article makes a brief introduction and comparison of the basic theory of internal control auditing and related concepts. It discusses the goal and principles of internal control auditing, the relationship between financial statement auditing and internal control auditing, and the relationship between internal control, internal auditing, self-assessment of internal control and internal control auditing. This article believes that risk-oriented auditing principles should be adopted, and with the method of "from top to bottom", we can obtain reasonable assurance to evaluate the effectiveness of the design and operation of internal control. Financial statement auditing and internal control auditing should be integrated, including the integration of audit methods, audit objectives, audit plans and the collection of audit evidence. Secondly, this paper makes an introduction to the research on internal control auditing of China and foreign countries.Then, this article makes a statistics and analysis on the audited reports on internal control of companies listed in Shanghai and Shenzhen. Also, it analyzes and summarizes the reasons why some non-standard opinions were issued. On this basis, this article makes a summary of the difficulties and challenges in the implementation of internal control auditing. Finally, some proposals and measures were put forward to improve the situation:in the aspect of laws and regulations, we should strengthen the construction and put forward internal control auditing standards as soon as possible; when it comes to the listed companies, they should constantly improve their corporate governance structure; and the CPAs should constantly improve their occupation judgment ability and professional competence to reduce costs and enhance efficiency.