Comparative Study Of Internal Control Evaluation Between Home And Abroad

Due to the outbreak of the accounting fraud case, the importance of internal controls draw more and more attention to the development of China’s internal control system in recent years, we are not yet at the level of the world’s leading, so it is very necessary to modify and improve our internal control system and the evaluation system. This paper firstly reviews the results of our research in internal control, at the same time combing the developing course of the internal control system and evaluation abroad. Find out the differences between home and broad, in order to improve our internal control methods and figure out the recommendations of the evaluation system.Although we have made some progress in the theory and practice in this area, the problems exist, such as the corporates" awareness of the importance of internal control is not enough, and the evaluation system is imperfect, etc. before solving these kinds of problems, china still has a long way to go.The theoretical basis of this paper lied on the combination of three theories: principal-agent theory, the theory of corporate governance and fiduciary responsibility theory. Upon the analysis of the theory basis, a comparative study of the internal control frameworks from different countries has been made and the positive parts of each one have been displayed and analyzed. From their experiences there are many things we can learn from, so the purpose of this paper is trying to come up with some advice from the internal control system and the evaluating standard as well. After that, a case study is used to verify the opinions that have been made in the preceding part of the paper. The case is about the comparison of evaluation of two different internal control system. By doing this, I randomly picked up50Chinese public companies and50American public companies, and find out if they have appropriately and roundly evaluated their internal control system. By comparing this, here comes up with a conclusion that the difference between china and America was caused by their different internal control evaluation system.In the sixth chapter, I focused on the weak or negative parts of the evaluation system of the internal control in china and provided some constructive opinions which would be useful for the future development of the evaluation system of the internal control.