Influencing Factors Of Listed Companies Disclosed Deficiencies In Internal Control

Internal control objectives is reasonable assurance that the legal compliance of businessmanagement, asset security, financial reports and related information is true and complete, toimprove operational efficiency and effectiveness, promote enterprise development strategy.Internal control deficiencies restricting the internal control objectives achieved; defectinformation disclosure directly affect investors’ decision-making and the securities marketefficiency of resource allocation. With the the the Chinese internal control system of norms ofJanuary1,2012in Shanghai and Shenzhen listed company on the Main Board of the fullimplementation of the internal control self-assessment, internal control deficiencies disclosedonce again become the focus of attention of theorists and practical.In this paper, based on the literature review and theoretical analysis,2009to2011, themain board of the Shenzhen Stock Exchange A-share listed companies to disclose internalcontrol self-assessment report as a sample, using descriptive statistical analysis methodsdisclosed deficiencies in internal control of listed companies in China the status quo expandthe analysis, and empirical research using a logistic regression model of factors affecting thedisclosure of internal control deficiencies. Analysis found that China’s listed companies existto gloss over deficiencies in internal control, not be distinguished according to the degree ofinfluence on the internal control deficiencies; disclosed internal control deficiencies aremainly concentrated in the construction of the internal control system, and the implementationof internal control, Internal Oversight and the company’s organizational structure. aspects, andmost remain in the surface description, lack of evaluation combined with the enterprise itself.Empirical studies found that the independence of the audit committee, the holdings of themembers of the Supervisory Board and internal control the defect information disclosure wasa significant negative correlation, while the size of the Audit Committee of the scale,professional, independent directors, due diligence and a percentage of the total number ofdirectors as well as the independence of the internal audit institutions and informationdisclosure of internal control deficiencies there is no significant correlation. Also verify thesize of the company, the type of audit opinion and company profitability, growth, certifiedpublic accountants hired international "Big Four" accounting firm to audit the relationshipbetween the five control variables and information disclosure of internal control deficiencies.In view of the above conclusions Finally, specific recommendations to strengthen internalcontrol construction.