Research On Listed Companies Deficiencies Disclosure Of Internal Control

The original purpose of internal control is to generate internal check.The 1840 s was an internal control in the true sense. Early 2000 s,a range of listed companies’ financial fraud scandals appears on the US capital markets, and Enron, Global Crossing, World Com, Xerox etc. a number of corporate giants have become the protagonist of the financial scandal. Violations of these enterprises not only create a serious blow to investors’ confidence in the capital markets, but also exposed there are significant deficiencies in internal control problems in the US listed companies. In order to protect the interests of the investor, rebuild investors’ confidence in the capital markets, countries have introduced regulatory measures to regulate the internal control of listed companies to develop and implement. Learning from the American experience and lessons, China has also promulgated a series of laws and regulations in order to constantly improve the internal control of the enterprise, from 2006, "the Shenzhen Stock Exchange listed company’s internal control guidelines" to 2014 on the 21 st documents shows that our internal control construction is gradually achieve a scientific, standardized state, but also underlines the great importance of the development of internal control. Deficiencies in internal control as an important part of the internal control system, on the one hand it reflects the efficiency of the implementation of internal control to some extent, on the other hand the internal control content and severity of defects can affect investors and other stakeholders of the enterprise value the judge, in turn will affect the long-term development. In addition, studies have shown that the internal control deficiencies and the corrective disclosure of information can improve risk prevention capacity, therefore, an urgent need for internal control deficiencies through research information, to the effect of internal control deficiencies listed companies to disclose information.Firstly, based on internal control deficiencies related literature at home and abroad to sort out and discuss,I have further understanding of some concepts related to internal control, such as internal control, internal control deficiencies, deficiencies in internal control information disclosure etc. At the same time I grasp the current mainstream view of defect information to determine the research ideas and methods in this paper, the main content and framework of the study, as well as major innovations and inadequacies. In the efficient market hypothesis, the theory of asymmetric information, agency theory and the theory on the basis of signal transmission, combined with the current status of implementation of internal control deficiencies necessity Internal Control Information Disclosure find from a theoretical perspective. Secondly,in this paper, 2312 in Shanghai and Shenzhen listed companies’ internal control self-assessment report in 2013 regard as the research object, internal control deficiencies information by that standard, defect content and corrective measures descriptive analysis to understand China’s current status quo of information disclosure of internal control deficiencies exist the problem, and then from the government, public companies and investor perspective, policies and recommendations were put forward to improving the disclosures of internal control deficiencies. Finally, through the presence of internal defects Company C specific case studies, from the perspective of practical application, content from internal defects, internal control deficiencies identified and corrective measures circumstances standard analysis Cdisclosure of internal control deficiencies,I thing Shanghai C’s disclosure of internal defect information is worth learning by other companies.In summary, this paper aims to explore the issue of information disclosure of internal control weaknesses, in order to determine a reasonable internal control deficiencies that standard disclosure, the establishment of a high-quality internal control deficiencies disclosure system. This paper enhances the degree of importance of listed companies to disclose information on internal control deficiencies and improve the disclosure of internal positive control of the information, while helping to improve the internal control system of the construction market, to expand the scope of internal control theory research, has certain practical and theoretical significance.