Research On Internal Control Self-assessment Report Of Internal Control Defects Recognition And Disclosure Of Listed Companies

The business failure and fraud scandal frequently showed up in The United States capital markets, bring a huge impact on the United States and even the world capital markets, at the same time, fully exposed the failure of internal control of listed companies, the lack of internal control information disclosure and other serious problems. In2002, the United States issued the "Sarbanes-Oxley Act," marked the country’s internal control disclosure of information from voluntary to compulsory execution. Compared with the United States capital markets, China’s financial fraud and counterfeiting problem is not uncommon, In order to strengthen our internal control construction, China in2006promulgated the Shanghai and Shenzhen listed companies’ internal control guidelines. In2008, the Ministry of Finance, the Commission and other five ministries jointly issued the "basic norms of internal control", further listed the construction and operation of the internal control of listed companies. And in order to provide specific guidance, five ministries in2010issued "enterprise internal control supporting guidance"However, although our country has issued relevant laws, regulations, and make the rules, but whether the listed companies in China actually made self-evaluation of the effectiveness of internal control in accordance with the requirements and publish the self-assessment report? How is the content, format and the level of detail? Is there any problem? Etc. Are worthy of discussion and research. Identification and disclosure of defects are the most fundamental problems In the identification and evaluation of internal control, However, our current internal control standards relating to internal control deficiencies identified exist gaps, Although the internal control deficiencies are defined, type are divided, but the defect does not explicitly specific classification criteria, It lacks operability in actual implementation,and At home and abroad, there is no systematic study on internal control defects.Therefore, in this paper, through a comprehensive sampling, and collected the internal control self-assessment reports of public listed companies in2012. on the basis of the introduced of relevant institutional background and theory, The author analyzed from four aspects of self-assessment standards, content arrangement, internal control weaknesses and self-assessment report disclosure and whether to hire a CPA and conducted a descriptive statistics to summarized the current status of internal control self-assessment of China’s listed companies, Analyze the causes and proposed corrective measures. Tried to put forward a set of internal control deficiencies identified and disclosure standards, and validated through a case.