The Research About The Influence Of Internal Control Assessment On Accounting Conservatism

In recent years, the tide of accounting reform and capital market reform, accounting earnings play a more important role in the capital market. Earnings, as a important securities regulation and investor decision making has been regarded as an important indicator of the development of major projects by the Accounting Standards specification. This article mainly indicates the impact assessment of internal control has on accounting conservatism. by recognizing the assessment of internal control system of listed companies, I analyze whether internal control has an impact on accounting conservatism and what type impact could it be,so that recommendation can be made to improve internal control assessment thus contributing to improve the robustness of earnings.Taking 2012- 2014 Board Shenzhen A-share listed companies in the study sample, after watching a lot of domestic and foreign papers which are about internal control assessment and accounting conservatism, I finally try to do theoretical research combined with empirical analysis, select the internal control assessment object, internal control deficiencies and rectification, authenticity of internal assessment report on behalf of the main elements of the evaluation, and test the impact of these three factors on accounting earnings conservation one by one, and found the results from the study:(1) The accounting conservation to hire an outside object of internal control assessment was significantly higher than company only has self-assessment of internal assessment on their own.(2)The enterprise which found internal control deficiencies in the assessment has significantly higher accounting conservatism than those did nothing.(3)The truth of internal assessment report of the company’s has higher accounting conservatism than those are untrue.For conclusion, this paper proposes the following policy and recommendations:(1) internal control assessment object should be a comprehensive multi-level system, should form the main internal control self-assessment and consider internal audit as the core, treat the external audit of social intermediary object as the main content of the assessment system.(2)The discovery of internal control deficiencies In the evaluation of listed companies should be proactive in internal control rectification, and actively disclose the results of rectification, and to promote the CPA audit of internal control processes and internal control to assess the situation after the rectification.(3) To ensure the authenticity of the disclosure of internal control assessment report, specific internal control assessment guidelines need to be further refined and improved, and strive to standardize methods and evaluation procedures to the board of directors, supervise the disclosure process of internal control assessment process in the report.Conclusions and recommendations aim to rationalize the level of ideas of the internal control assessment of listed companies, promote listed companies to strengthen internal control assessment system, and to improve accounting conservatism instructively.