Effects Of Listed Companies To Disclose Internal Control Deficiencies Of Corporate Governance

as enron, silver metal events, Olympus significant financial loss is exposed constantly,these major accounting cases revealed that at a certain extent many companies lack theimperfect mechanism of internal control and corporate governance mechanism. It isgenerally believed that the more weak management of the company, more imperfectcorporate governance structure, even failure,the greater chance of the defects of internalcontrol have. So, wo can infer that it is concluded that corporate governance structurerationalization helps to set up and implement effective internal control. One of the reasonof internal control failure is that company lack of comprehensive, reasonable layout ofcorporate governance.Therefore, understanding the nature of the relationship betweencorporate governance and internal control is necessary. At the same time, the perfection ofcorporate governance structure and internal control system of sound is one of the importantaspects to maintain company’s vitality.At voluntary disclosure of internal control defects stage, some scholars haveresearched about the relationship between corporate governance characteristics andinternal control defects based on unaudited explored self-evaluation report and other data.However, in the stage of mandatory disclosure of internal control and self assessmentreport under the background of the mandatory audit and disclose, how is the relationshipbetween corporate governance characteristics and internal control defects? This problemneed to be solved on support of the empirical results, then we must improve corporategovernance structure and making the internal control perfect on the purpose ofstrengthening the effectiveness of internal control.This paper uses2012motherboarda-share disclosure of the listed company internal control audit report of the self-assessmentreport and internal control audit report and other data, chooses the independence of theboard of directors, the board size, the joining together of two position, the first majorshareholders holdings as internal governance structure variables, and selects whether theauditor quality of internal control audit report, the external auditor changes as an externalgovernance factors, and uses if internal control defects are disclosed as explained variable,then,hypothesized and established multiple linear regression model, So we use descriptivestatistics analysis, correlation analysis, LOGISTIC regression analysis for the empiricalstudy. The results show that the first major shareholding, the joining together of twoposition, internal control audit report of the auditor, the auditor change and the defects ofinternal control disclosure quality is significantly related to the disclosure of internalcontrol defects. The independence of the board of directors is negatively related to thedisclosure of internal control defects. Finally, in response to these conclusions, the paperproposes recommendations to improve the disclosure of internal control deficiencies andcorporate governance structure.