According To The Listing Corporation Internal Control Evaluation To Study The Negative Opinions

Internal control plays an vital role in corporate sustainable development. Internal control works as a adhesive, which combine all economics factors of the enterprise such as fund, equipment and human resource. Therefore, it can ensure them fulfilling their full potential productivity. This will provide a guarantee for sustainable development of the enterprise. Additionally, an effective and complete internal control safeguard the enterprise from the operating risk. In 21 st century, on the global scale, frequent financial fraud has caused severe economic loss. One of the important reasons is that the listed companies are lack of effective internal control. From the practical experience, a perfect internal control system of the enterprise does not equal to an effective internal control. Thus, the importance of assessing internal control is increasingly attached. Assessment of internal control is the important strategy which enhances the internal control and ensures it works effectively to achieve the aim. The Congress of the United States passed the Sarbanes-Oxley Act in July 2007, which sets out the compulsory requirement for corporate management to assess the internal control of the enterprise. Besides, it also requires that the assessment of internal control is assured by the accounting firm in order to promoting the quality of the disclosure of information of internal control. In our country, corporate ineffective internal control is progressively aroused attention of related department and the academic. In order to enhance the establishment of corporate internal control, Shanghai Stock Exchange and Shenzhen Stock Exchange issue Guidelines for the Internal Control of Listed Companies respectively in June 2006 and September 2006. In 2008, Fiscal Ministry of China, China Securities Regulatory Commission, Auditing Ministry, China Bank Regulatory Commission and China Insurance Regulatory Commission issue the Basic Standard for Enterprise Internal Control and its auxiliary guidelines. These standards require listed companies of China assessing the corporate internal control and disclose a report of self assessment of internal control with the annual report. In fact, there are numerous enterprises do not attach sufficient importance to assessment of internal control and were presented adverse audit opinion for assessment of internal control. Consequently, the enterprise should recognize the significance of internal control in a strategic perspective by analyzing adverse audit opinion.This thesis initially describes the background information and purpose,comments domestic and foreign references, states the research method and structure, introduces basic concept and related theoretical knowledge. Afterwards, according to the three drawbacks of the internal control, I analyze the reasons in the form of analysis of case. In addition, I analyze the five elements in sequence in accordance with Basic Standards for Enterprise Internal Control. Finally, reasonable suggestions are given.