Factors Affecting The Effective-ness Of Internal Control Of Listed And The Self-evaluation Report

Enron, WorldCom and other companies listed on the outbreak of the financial fraudcases, greatly reducing investor confidence in listed companies and their executives, andinternational capital markets caused a heavy impact, fully exposed the weakness of internalcontrol of listed companies and lack of information disclosure, gave birth to the countrieslisted company regulators to strengthen internal controls and information disclosure anddeepened.Of the Shanghai Stock Exchange and the Shenzhen Stock Exchange in June2006andSeptember, respectively, issued the " Guidelines on Internal Control of ListedCompanies." Ministry of Finance Joint Commission, the Audit Commission, ChinaBanking Regulatory Commission, China Insurance Regulatory Commission in June2008formally promulgated the " Basic Standard for Enterprise Internal Control ", regarded asthe Chinese version of " Sarbanes-Oxley Act " clearly states that the specification should inlisted companies was the first to perform. Implementation of this specification enterprises,the annual self-assessment of the need for internal control of the enterprise, and to issue acommunity self-assessment report. This specification allows the introduction of greatertransparency of listed companies, is an important initiative to strengthen internal controls.Five ministries on the basis of the basic norms in April2010ED Society issued the "Enterprise Internal Control Audit Guidelines,"" Enterprise Internal Control EvaluationGuidelines " and " Guidelines for Enterprise Internal Control Application " for the listedcompanies to implement internal control self-assessment made clear guidelines andpractices.Internal control self-assessment of internal control as a further means of control is anecessary part of the internal control objectives are achieved. Implementation of internalcontrol self-assessment for an enterprise to strengthen management, improve laborproductivity, improved active role in internal audit procedures and business processes andcontrol risk has. The internal control self-assessment report and the information needs ofthose who can obtain a more comprehensive and reliable business information. Therefore,China’s listed companies have come to know from the strategic implementation of internalcontrol self-assessment is important. Relevant laws and regulations have been promulgated,the company is currently listed on the implementation of the internal controlself-assessment and how the disclosure of the report? What are the problems? To studythese cases, the paper will2012Shanghai Stock Exchange A-share listed companiesconsidered the overall sample, the application of norms and empirical scientific method ofcombining aspects of internal control self-assessment conducted in-depth exploration ofresearch, mainly on the standard research method in this article related concepts andtheories, empirical method analyzes the internal control self-assessment of the overallsituation and possible influencing factors present in this section, first by building a scoring system to determine the sample enterprises effectiveness of internal control self-assessmentreport of the situation, followed by By regression analysis to establish the factors that mayaffect the results of these ratings. Study concluded that the main responsibility is not clear,the evaluation criteria are not uniform, not required to disclose internal control deficienciesand other significant feature is the overall internal control self-assessment report, and theregression results proved the company’s profitability, financial risk, company size, scaleSupervisory Board, The management stake, listed age and type of audit opinion eightfactors that significantly affect the level of effectiveness of the self-assessment report.Based on the findings of the current situation and empirical analysis, the article concludeswith some further improve our internal self-evaluation policy recommendations.