A Case Study Of Internal Control Information Disclosure Of Shenzhen Nanshan Thermal Power Company

As the Enron scandal wore on, many other companies such as WorldCom, Xerox, and Merck collapsed and became financial scandal as well. The U.S. federal then established Sarbanes-Oxley Act. From then on, internal control received unprecedented attention around the world. Soon after the SOX2002, countries, such as U.K., Canada and Japan also established similar laws on internal. So did China. In2008, the Ministry of Finance, together with the other four Ministries established the "Internal Control Standards-Basic Standards", which is called the SOX Act of China. And in2010, the Ministry of Finance, together with the other four Ministries released another18guidelines for the "Basic Standards", which is a milestone in the course of internal control reform in our country. This study selects A Co., Ltd as a case study, who disclosed self assessment report of internal control early from2006. And the case study shows the internal control information disclosed among reports across years is quite different, some detailed and some rough. And further study presents the management has the motivation to take advantage of the signal mechanism of internal control.One the one hand, this article aims to assess the effectiveness of the internal control information disclosure policy both by case study and descriptive statistics of the market data. On the other hand, this study tries to summarize the progress and deficiency of the current policy based on the results of prior literature and case study mentioned above. Hopefully, this study can provide some enlightenment for the management and regulators.The article is divided into six chapters:The first chapter is the introduction. It provides information about the background of this study. This chapter also describes the overall structure of the writing, together with the contributions and defects of this paper. The second chapter is literature review. This chapter first presents the definition of internal control as well as internal control regulation and then reviews related literature domestic and overseas.The third chapter is current situation of public companies’internal control-related information disclosure, including the history of internal control information disclosure in our country as well as the descriptive analysis of market data. The fourth chapter is case study. The fifth chapter is the summarization of remaining problems and the sixth chapter is the presentation of possible suggestions on internal control-related disclosure. The last section is the conclusions of this article.This article has following two contributions. Firstly, this article shows the progress of internal control information disclosure by the induction and reorganization of prior research. Secondly, this paper also summarizes the remaining problem and possible suggestions of the current internal control regulation.