A Study On The Correlation Between The Quality Of Internal Control Report And The Internal Control Target Of Listed Companies

The Sarbanes–Oxley Act enacted by the US Congress in 2002 made a clear request of the discloser of listed company’s internal control self-assessment report.Since then, the disclosure of internal control information have been established and continue t o improve worldwide. ―Basic Norms of Internal Control‖ of 2008 and ―Internal Control Supporting guidelines ‖of 2010 has brought China to the era of internal control. The disclosure of internal control information do great to listed companies’ self-examination, the improvement of management, effective risk prevention and enhance the vitality of capital market,bring value information to investors and all of what are achieving the internal control objectives. As the main way of internal control information disclosure,whether the quality of the disclosure of internal control self-assessment report is relative to internal control objectives?The result can make contribute to the improvement of internal control system. Given the above, this paper focuses on the relationship between the quality of disclosure of internal control self-evaluation reports and internal control objectives.This paper choose 890 China’s Shanghai Stock Exchange A-share listed company’s internal control self-evaluation reports in 2011 and 2012 as research objects for the study of China’s information disclosure of internal control self-evaluation reports. This paper firstly makes a comment on the domestic and foreign relevant research literature review, defines internal control and the quality of disclosure of internal control self-evaluation reports, describes the Principal-agent theory, the asymmetric in information theory, the Signaling theory, the Efficient Market theory and the disclosing present situation of internal control self-evaluation reports. Then, establish the listed company internal control self-evaluation system on the basis of Internal Control Supporting guidelines,through the credibility,we determine the explanatory of the research.Then we study the correlation between the quality of internal control self-evaluation reports and internal control objectives which is core of this article. At last,we make constructive suggestions based on the empirical results.