A Study On The Text Quality Of Internal Control Self-assessment Report Under The Internal Control Auditing Enforcement Policy

With the promulgate of"Basic norms of internal control " and " SupportingGuidelines of internal control," internal control evaluation and the disclosure ofinternal control information received increasing attention. There are two forms ofevaluation and disclosure,one is the self-evaluation of corporate and the internalcontrol self-assessment report, which is an internal monitoring mechanism ofenterprises; The other is internal control audit by certified public accountant and theinternal control audit report, which is an external oversight mechanisms. The formeris the supervision of process, while the latter is the supervision of consequence, thetwo are indispensable and complement each other.For self-assessment report ofinternal control, Managers have discretionary space.Therefore in addition tocomplete basic disclosure many companies further improve the quality of informationdisclosure to eliminate the agency conflict or signal. According to previous research，the internal control audit can improve the effectiveness of internal control and thereliability of internal control information. But in addition, are there other mechanismsof action between Internal control audit report and self-assessment report of internalcontrol?Using the principal-agent theory, asymmetric information theory, signaltransmission theory，this paper analyzes the factors which influence the quality ofinternal control self-assessment report and the regulating action of internal controlauditing. State-owned listing corporation in2010,2011and2012is selected as theresearch sample. The paper tests the factors which influence the quality of internalcontrol self-assessment report through the Multiple Linear Regression andinspects the regulating effect to these factors influencing mechanism by setting theinternal control mandatory audit mechanisms as regulate variable. The results showthat: Separation of two rights, Managerial stockholding level,and internal controlssignally influence the quality of internal control self-assessment information; internalcontrol audit agency has a positive regulation effect on the relationship betweenSeparation of two rights and the quality of internal control self-assessmentinformation; internal control audit agency has a positive regulation effect on therelationship between Managerial stock holding level and the quality of internalcontrol self-assessment information. The conclusions are robust.Finally, the paper summarizes the research conclusion of this article, puts forward the correspondingpolicy recommendations from the two aspects of mandatory disclosure and voluntarydisclosure mechanism, and then analyzes the limitations of this study and putforward the research prospect.