The Study Of The Influence Of Enterprise Cultureto Internal Control Effectiveness

Since the 21 st century, corporate financial fraud scandals occur constantly, the main reason of such incidents being the failure of internal control. This has attracted the attention of the community,each country has issued relevant laws and regulations for internal control; many scholars discussed the problem of internal control from perspectives of accounting, auditing and corporate governance respectively. But even so, the problem of internal control failure still exists. Take another thorough look at these affairs; it is a financial problem in the surface, but indeed a reflection of cultural lack at the bottom. Therefore, in another way, this paper explores enterprise culture from the perspective of the humanities to discuss its effect on the effectiveness of internal control, to provide guidance of the theory and practice for enterprises to better implement internal control and improve the effectiveness of internal control.In this paper, methods of combining normative and empirical research were used to research on the influence of enterprise culture on the internal control effectiveness. Firstly, theoretical and practical significance of this study was put forward according to the research background of internal control problems; secondly, basic concepts and theories of enterprise culture and effectiveness of internal control were introduced based on domestic and foreign literature; then, a theoretical perspective was used to analyzed how enterprise culture and the effectiveness of internal control affect each other; next, empirical methods were used verify the above theoretical perspectives. The enterprise culture was divided into four dimensions of values, business philosophy, enterprise spirit and behavioral norms, the effectiveness of internal control was divided into five dimensions of compliance goals, asset goals, report goals, business goals and strategic goals. Research design and research hypothesis and model building were made and analyze the influence of enterprise culture on the effectiveness of internal control using data collected by questionnaire. Finally, the actual case of T Bank was analyzed on how enterprise culture affected the effectiveness of its internal control, and then put forward proposals to further enhance the enterprise culture, in the purpose of providing theoretical and practical guidance for T Bank to further improve the effectiveness of internal control by enhancing enterprise culture.