Listed Iron And Steel Enterprises Internal Control Evaluation Report Quality Defects And Improvement

Internal control is an important part of enterprise management system. It is the key to ensure the sustainable and healthy development of enterprises. Effectiveness of internal controls directly determines the authenticity of financial reporting and it is a most important factor to keep the capital market develops healthily. The entire implementation process needs the company’s governance, management and staffs working together. Listed enterprises conduct regular self-evaluation of its internal controls, disclosure self-evaluation report to the public, meanwhile, retain an accounting firm audit the company’s internal control work and issue audit reports. Publishing internal control reports is a communication channel among companies and the interests of investors, creditors and other stakeholders. Conveying the information of companies’internal control work to public also play a supervisory role to companies’management. In recent years, corporate accounting fraud cases occur frequently, affecting the interests of investors, creditors and the healthy development of the capital market. Therefore, the internal control of listed enterprises attracts more and more attention from regulators and public.In recent years, the iron and steel industry crisis drew public concern. This paper take this industry for example, to analyze the quality defect of listed company’s internal control evaluation reports. Select 35 listed iron and steel companies’2014 internal control evaluation reports as samples. Using comparative analysis method analyzes content of reports, finding these reports tend to formal and avoid disclosing defects. Also, they use different, unscientific and ill-defined rules to measure defects of internal control. And then using the flowchart analysis and fishbone analysis analyze external regulatory environment, shareholders’ supervision responsibility, internal responsibility institution, professionals and methods. Through these four aspects to find the root causes of the defects of reports. Finally, suggestion as follows:strengthening internal control supervision and disclosure regulation, optimizing ownership structure and corporate governance structure, improving the internal control awareness and expertise related personnel, building effective evaluation methods, etc. And further enrich the content of the internal control evaluation report, improving the quality of the report.