Research On The Identification And Disclosure Of Internal Control Defects In Listed Companies

Enron fraud,CAO Singapore incident and a series of scandal exposure,from the side reflects the domestic and international attention to the internal control is not enough,and then led to a major corporate internal control defects.These cases of management fraud have shifted the attention of the public to the soundness of the internal control system of listed companies,the identification of internal control deficiencies and the authenticity of information disclosure.In 2002,the United States Securities and Trade Commission(SEC)promulgated the "Sarbanes-Oxley Act"(2002)in order to strength the management of the internal control of listed companies and the management of information disclosure,in 2002,the first promulgated the "Sarbanes-Oxley Act" Bans Bill ",of which the provisions of Section 404 in the United States listed companies must be required to disclose internal control self-assessment report,known as the history of the most stringent laws.Section 404 of the SOX Act states that a listed company must disclose the internal control report as required and evaluate the effectiveness of the internal control.If there are defects in internal control,should also disclose the internal control of the defects of the standard and rectification of the situation.China has also kept pace with the Ministry of Finance,the Commission,the Audit Commission,the China Banking Regulatory Commission and the CIRC five ministries and commissions in 2008 issued a basic norms of internal control",2010 issued a corporate internal control guidelines The Guidance on Internal Control includes the Guidance on the Application of Enterprise Internal Control,the Guidelines for the Application of Enterprise Internal Control,and the Guidelines for the Auditing of Internal Control.To provide China's listed companies in 2011 must be mandatory disclosure of internal control self-evaluation report.2012 Ministry of Finance issued the issued on the issuance of internal control system for the implementation of the relevant issues in the interpretation of the first notice(hereinafter referred to as the first notice)issued by China's listed companies issued by the internal control self-evaluation report made the appropriate format and Content Disclosure Requirements.And in 2014 the Commission issued the public offering of securities information disclosure rules 21-the general provisions of the annual internal control evaluation report(hereinafter referred to as 21)on the disclosure of internal control report rules made Further modification and improvement.The promulgation of these norms marks the importance of our recognition and disclosure of internal control deficiencies.Internal control deficiencies reflect important information on the implementation of internal control of listed companies.On the one hand,to a certain extent it can reflect the company's internal control implementation and corporate governance operation efficiency,on the other hand it can affect investors and other stakeholders to judge the value of the enterprise,and then affect the long-term development of enterprises.In addition,research shows that the disclosure of internal control deficiencies and rectification can improve the risk prevention capabilities of enterprises.Therefore,China's urgent need to identify and disclose the internal control of the lack of information to improve the listed companies on the internal control of the identification of the scientific standards,to regulate the internal control of defect information disclosure behavior,and enhance the disclosure of internal control deficiencies information practical.This paper first through the domestic and foreign relevant internal control defects identified and disclosed the literature to sort out the discussion,the internal control of the defect identification,internal control information disclosure and other related concepts to further understand.Secondly,it analyzes the status quo and problems of the internal control deficiencies in China's listed companies and the status and problems of the defect information disclosure.It puts forward the opinions and suggestions on perfecting the internal standard of the internal control and the disclosure of the practicality.Finally,through the case analysis of the Wanjiang logistics company which has identified and disclosed the internal control defect,on the basis of the previous analysis,the paper analyzes the internal control defect content,the internal control defect identification standard and the rectification measures.Defects identified and disclosed the existence of the problem,and according to the issue of relevant recommendations.The innovation of this paper is that through the analysis of the latest standard and disclosure of internal control defect information in the internal control self-evaluation report in 2012-2015,it is possible for the readers to understand the current standard of internal control defect and the actual Situation,and with a typical listed companies as a case to be analyzed,with far-reaching practical significance.