The Research Of Internal Control Disclosure Of Information Impact On The Quality Of Financial Reporting

Enterprise need to regularly provide financial report, inform the stakeholders ofmanagement result in the past operating period as well as current assets. Financial report is themain way of the enterprise external stakeholders to get financial information, so financialreporting quality is especially important. Internal corporate earnings management behavior is animportant factor affecting the quality of corporate financial reporting and earnings managementis the management by deliberately arranging transactions or purposefully selecting changesaccounting policy to adjust the surplus. The role of internal control to prevent management fraud,and internal control information disclosure system can force enterprises to establish a soundsystem of internal control, from the source to eliminate earnings management behavior.Therefore, the enterprise’s internal control information disclosure policy will affect the quality offinancial reporting.In this paper, from two aspects of literature and theory to review related content ofinternal control, internal control disclosure of information and financial reporting quality.Section Jones model is used to calculate surplus quality and quality of financial report in termsof earnings quality. In the empirical part, using Multiple Linear Regression andIndependent-Sample T test argument of the five hypotheses of this paper. This paper selected theShanghai stock exchange A-share listed manufacturing companies data prove related hypotheses.At the end of the paper, it puts forward some related Suggestions to perfect internal controlsystem and internal control information disclosure policy of our country.