Research About Financial Report Audit Affecting Authenticity Of Significant Deficiencies Disclosure Of The Internal Control Audit

Since2012, China began to enforce internal controls and audit informationdisclosure, listed companies were required to disclose internal control self-assessmentreport and hired an accounting firm to audit the effectiveness of internal control andaudit report, which was conducive to improve financial transparency of listedcompanies, improve the management level, and also to facilitate stakeholder supervision.But in the current economic environment, financial reports of listed companies todisclose exist the "water", the disclosure of internal control information and theauthenticity of the self-assessment report are questionable whether there are significantinternal control deficiencies that need to be attention. Therefore, researching the internalcontrol of listed companies information and evaluating the internal control significantdeficiencies authenticity disclosure are important.Firstly, by analyzing the significant deficiencies of internal control, factors of thesignificant deficiencies of internal control and measure indicators of significantdeficiencies, this paper leads to significant deficiencies in internal control definition andtries to summarize disclosure of authenticity of internal control significant deficiencies.Secondly, from the audit opinion, the accounting firm size, change accounting firms,integrated audit, company size, financial condition and other aspects, deeply analyzesthe factors affecting the internal control of information disclosure, proposes disclosureof internal defects affecting the control of major assumptions of authenticity. Thirdly, inorder to verify the correctness of the above assumptions, This paper selects the presenceof significant deficiencies of internal control of listed companies as samples of mainboard listed companies in2011-2013, and then synthetically analyzes the financialreports, internal control self-assessment reports, audit reports and financial statements,audit reports of internal control self-assessment report, thereby selecting the internalcontrol audit opinion, the accounting firm the size of internal audit, internal auditaccounting firm changes, earnings audit opinion, the size of the accounting firmauditing financial statements, financial statements audit accountant agency, anintegrated audit, total assets and debt ratio and other factors as the analysis of indicatorsand building the logistic model. Fourth, for each variable descriptive statistics andcorrelation test, and logistic regression analysis, the paper makes empirical analysis anddraws conclusions based test. The research shows that the audit opinion of internal control,accounting firm size ofinternal control, internal control accounting firms to change, audit opinion, companysize and financial condition, these six factors and internal control disclosuresauthenticity are significant positive correlation, while audited financial statements andinternal control audit is to integrate, as well as the size and change the subject to theinternal control audit financial statements disclose the truth no significant correlationbetween the defect. According to the above conclusions, we believe that, in order toreduce the internal control of listed companies to disclose the risk of significantdeficiencies authenticity, the first major defect should improve internal control theory todevelop a reasonable measure of internal control deficiencies scientific indicators;secondly, to strengthen internal controls over financial reporting and information qualitysupervision, increase transparency and authenticity of information disclosure; thirdly, toimprove the disclosure of internal control deficiencies related to the subject ofaccountability mechanisms to promote awareness of internal control informationdisclosure. Meanwhile, the conclusions of this study have imperfections, these are notscientific and comprehensive, and there are differences in theory and practice and somedifferences in sample selection, so the further study is needed.