A Research On The Internal Control Deficiencies Identified Standards Of The Manufacturing Listed Companies Based On Control Objective

The Ministry of Finance and other five departments introduced "Basic Norms of Enterprise Internal Control" and some supporting guidelines,marking the initial formation of the internal control standards system in our country, the listed compay began to be forced to construct and evaluate the internal control. According to "Notice on the Batches Implementation of Internal Control System Norms for the 2012 Host Company", all main board listed enterprises in Shanghai and Shenzhen should take the internal control system in 2014. Internal control deficiency identified standards are related to the evaluation capacity of the listed company and the quality of internal control self-assessment reporting directly.At present, our country internal control standard system lacks a certain definition of internal control defects, especially non-financial reporting internal control defects. It only has a principle regulation for important defect standard. The Ministry of Finance and other related interpretations also give no specific guidances. All of these are bound to lead enterprises determined and published internal control defects identified standards randomly,and low quality of the internal control defects information, even the formalization of internal control evaluation. It is necessary for a specific industry to provide operational standards to guide the internal control defects.Based on the relevant research results at home and abroad, select internal control deficiency standards of manufacturing listed company for research. Firstly, this paper studies the nature of the internal control deficiencies based on new institutional economics relevant theories, so as to define financial reporting internal control deficiencies and non-financial reporting internal control deficiencies, subdivides internal control defects according to different severity level. Secondly, this paper carried out a statistical analysis on the Shanghai manufacturing industry in China listed companies internal control self-assessment reporting internal control standard defect information and analyzed the present situation and the reason. And then, based on the control target oriented principle and other principles, adopting a combination of quantitative and qualitative methods to determine the financial reporting internal control deficiencies standard and non-financial reporting internal control deficiencies standard, and financial report internal control deficiencies are divided into major deficiency, important deficiency and general deficiency,non-financial reporting internal control deficiencies can be divided into major deficiency and general deficiency. Finally, using the method of layered scoring defects of internal control standards information quantification and using multiple regression model analysis the relationship between internal control deficiencies identified standards and internal control level. This paper draws the following conclusion: under control target oriented, the use of quantitative and qualitative methods to determine the financial report internal control defects and non-financial reporting internal control deficiencies of the company, its control level is higher. And, this paper put forward advice to promote the internal deficiencies identified standard from the aspects of enterprise and regulatory sectors.