Research Oh The Problem Of Internal Control Self-Assessment If Listed Companies In China

At the beginning of21st century, Enron, WorldCom and Xerox broke out a series of financial fraud cases. It had a great impact on the capital market and the investors’confidence. In2002, USA promulgated the "Sarbanes-Oxley Act", first put forward a clear requirement on the effectiveness of internal control financial report and also require listed companies to make internal control self-assessment. Compared with USA, China in recent years had lots of financial fraud cases. In order to emphasis on internal control evaluation of China listed companies, the Shanghai stock exchange and Shenzhen stock exchange promulgated the "Guidelines for the Internal Control of listing Corporation" in2006. Then in2008, five ministries jointly issued "The Basic Norms of Internal Control", clearly put forward that China listed company should have internal control self-assessment to internal control effectiveness, and the evaluation report should be provided to the public. To provide enterprises with more guides about the internal control construction, in2011five ministries promulgated "Guidelines for Evaluation of Enterprise Internal Control ","Guidelines for Audit of Enterprise Internal Control" and "Application Guidelines for Enterprise Internal Control". This shows that the development of China internal control system grow to a new height, and have gradually narrowed the gap between the developed countries.Although the internal control evaluation environment in our country has initially formed, the "Enterprise Internal Control Evaluation Guidelines" has make regulations in the aspect of evaluation content, procedure, defect cognizance and so on. However, it only acts as a framework guide. Due to the development time of internal control self-assessment in our country is not long, lots of enterprise internal control constructions and the evaluation works are still on the initial exploration stage. The "Guidelines for Evaluation of Enterprise Internal Control" has been promulgated three years since2011. How is the implementation of guidelines? Does China listed companies obey the regulations and provide evaluation reports to public? Which problems still exist in the process of self-assessment, and how to adjust the policy to avoid these problems? Both regulators and all listed company stakeholders pay highly attention to those questions, thus became an important academic issue.Firstly, this paper expounds the relevant concepts and theories of internal control self-assessment. Then it takes the comparative analysis of internal control evaluation backgrounds and regulations in US, Japan and China. The article uses2013Shanghai and Shenzhen listed companies’internal control self-assessment reports as the research sample, carried on a detailed descriptive statistical analysis on aspects such as responsibility subject, valuation procedure and methods, evaluation content and information disclosure defections. At the same time, this thesis analyzes above problems existing in the internal control self-assessment process, and tries to explain the internal cause and external cause of those problems. Finally, it concludes experiences from foreign internal control evaluation, and puts forward suggestions from views of external supervision level, internal enterprise level, stakeholders and intermediary institution level.