The Empirical Research On The Effectiveness Of Listed Companies To The Internal Control Based On The Internal Environment Perspective

Internal control is determined by the Board of Directors, Board of supervisors and managers and staff in the implementation process, aimed at achieving the control objectives.Effective internal controls shall include at least the following five basic elements: the internal environment, risk assessment, control activities, information and communication,internal oversight. Internal environment affects all aspects of the business, which is the foundation of the other four internal control elements,and plays a fundamental role in the establishment and implementation of enterprises ’ internal control. This article is from the perspective of enterprise environment, and based on the separation of ownership and management system of enterprises operating, namely, focusing on Board of Directors and Board of supervisors, managers and staff and so on to study the principal characteristics of a series of indicators to factors affecting on the effectiveness of internal control. Internal control effectiveness is measured by the five goals, that is the reasonable assurance of legal compliance of the enterprise management, asset security, financial reports, the truth and completeness of the related information, improving operational efficiency and effectiveness, and promoting the realization of the strategy for the development of Enterprise evaluation criteria.Firstly, the theory discusses the internal environmental characteristics,which impacts on the effectiveness of internal control, and at the same time discusses the five objectives of the internal control to evaluate the feasibility of the effectiveness of internal control.the above provides theoretical support for later analysis. Then this paper constructs a multivariate regression model between the internal environment and the effectiveness of the internal control by the basic frame named”the basic norms of internal control”and the report COSO and the global outcomes of the study on the effectiveness of internal control. Then I collect relevant data from Shenzhen listing Corporation for research, and calculates to get the value of the internal control’s effectiveness and performs statistical analysis of value running assessment of internal control of listed company in China. Finally,we set the value calculated above as the explained variable, and set important elements of environmental indicators as the explanatory variables,which form the regression model.then,we study it,and make related strategies and suggestions combining with underlying condition of China’s enterprises.