Study On Relationship Between Financial Reporting Controls And Earnings Management-

The accounting information most basic characteristics are the policy-making usefulness, the earnings quality take the accounting information an important aspect, accounting information user’s explanation to the accountant earnings directly relates to its economic interest. In our country, the accounting information distorts seriously, the quality of accounting information is worrying.Generally believes that affects quality of accounting information the method to have two kinds:Financial report fraud and earnings management. Regardless of the earnings management from its has condition to implement the main body, is not only a pure accountant issue, it involves a series of deeper levels the issues, like corporate management structure and asymmetric information, as well as government regulation and market economic environment iso-structuralism issue, namely company’s internal control and exterior government issue.14th guidelines, of the guidelines for the internal control of enterprise application-financial report specified in report preparation, provide, analysis using critical control points and response measures on the quality improvement of China’s financial report system based on. This article attempts to control and earnings management from an empirical analysis of financial reports of relevance.This article first introduced earnings management and meaning and correlation theories foundation of financial report internal control, and has analyzed two relevance from the principal-agent theory and asymmetric information theoretical point of view theoretically. Then, this article takes2009-2011the Shenzhen, Shanghai textile and garment manufacturing industry listed companies for the object of study, utilize the descriptive statistics and the method of average value difference examination and multi-linear regression, discussed the financial report internal control to manage with the earnings the relevance. The empirical study is mainly divided into two parts. The first part is the measurement of empirical study earnings management. This article some appraised in the theory should count various profit law measurement models, in light of our country stock market and this article studying the actual situation, has chosen Jones model of revision, carried on the regression analysis to the sample company annual report data, by degree of absolute value weight earnings management the maneuverability should count。The second part is to corporate finance reported that the internal control conducts the empirical study with the relevance that the earnings manage. This article takes disclosure as well as with the financial report related system of internal control improvement nature of internal control self-assessment report as the variable of weight internal control, takes the listed company whether sets up the management audit department and board of directors whether publishes the opinion and outside audit organization to the internal control self-assessment report whether publishes the opinion and board of directors to internal control about analysis of financial statement conference and net rate of return for the controlled variable, through linear regression analysis. The real diagnosis result showed that the high-quality financial report internal control to the earnings administrative action of listed company will play certain containment role. Moreover, some internal control characteristics of company will also affect the listed company earnings administrative action.Finally, this paper focuses on current problems existing in the internal control of listed company in China, put forward relevant recommendations.