Research On Impact Of Internal Control Audit On The Quality Of Internal Control Information Disclosure

In2002the Sarbanes-Oxley Act of the United States pioneered the mandatory internal controlaudit, and internal control itself externalities’ gradual appearing gave rise to the internal controlaudit. Before mandatory internal control audit, the quality of internal control information disclosurecouldn’t get effective guarantee, reduced the efficiency of capital market, and was not conducive toachieve the optimal allocation of resources. So our country in2008on May22and April26,2010issued the enterprise internal control basic norm and the enterprise internal control supportingguidance, marked the beginning of our country into the new stage of mandatory internal controlaudit.Based on internal control information disclosure as the guidance, based on theory of internalcontrol effectiveness, deduce the meaning of the quality of internal control information disclosure,creatively build new measure standard of the quality of internal control information disclosure, andwill be conducive to the correct development of the research of the quality of internal controlinformation disclosure. Secondly, in this paper, we empirically studied the influence on the qualityof internal control information disclosure of listed companies by the mandatory implementation ofinternal control audit and the characteristics of internal control audit, providing empirical evidencefor further strengthening the quality of internal control information disclosure of listed companies inChina, as well as standardizing the internal control information disclosure of A-share listedcompanies in Shanghai and listed companies in our country, providing theoretical basis for listedcompanies and accounting firms to optimize the mechanism of internal control audit,and toeffectively control the quality of the internal control information disclosure.After clearing the measure standard of the quality of internal control information disclosure,this paper conducts empirical research from three factors of the implementation of mandatoryinternal control audit, integrated audit and accounting firms reputation, to explore the influence onthe quality of the internal control information disclosure by the implementation of internal controlaudit and the characteristics of internal control audit. Using event study method and Logisticregression analysis, based on the dynamic data and section data, this paper examines the data ofinternal control and finance of A-share listed companies in Shanghai from2010to2012empirically,the results show that there was no significant positive correlation between compulsoryimplementation of internal control audit and the quality of internal control information disclosure,internal control audit had a role in promoting the quality of internal control information disclosure, but the effect was not obvious; there was significant positive correlation between accounting firmsreputation and the quality of internal control information disclosure; there was no significantpositive correlation between integrated audit and the quality of internal control informationdisclosure. Therefore, we put forward that the listed companies shall optimize the selectionmechanism of the auditor of internal control; accounting firms shall raise their practice quality,adhere to the excellent professional ethics, maintain good social reputation.