Internal Control Audit,Self-evaluation Of Management Internal Control And Internal Control Quality

In 2008,China promulgated the "Basic Norms for Corporate Internal Control" and in 2010 issued the "Guidance Guidelines for Internal Control of Enterprises".These two components together form China’s internal control system and require companies that are included in the normative system to carry out internal management control.Self-assessment and internal control audit by a third party,the final batch of the implementation of the classification and batch execution of 2013,at the same time,in order to rule out the interference of the 2008 financial crisis on empirical results,the sample will be limited to 2009-2013.Audited control is not an ideal measure of the quality of internal controls because it reflects a point in time,and because the identification problem and the disclosure motive make the audited control noiseless(Ashbaugh-Skaife,Collins & Kinney,2007).The annual data has been corrected by CPAs and companies,and there is noise in measuring the quality of internal control.Therefore,this paper uses future unaudited quarterly working capital accruals to measure the quality of internal control,and uses the sample amount of 21644 for the first three quarters of the data to test hypothesis.This paper empirically tests whether internal control audit can improve the quality of internal control.Whether management internal control self-evaluation can play an intermediary role between internal control auditing and internal control quality,and the article is further grouped according to the nature of property rights and corporate governance.This paper studies the mediating role of self-assessment of management internal control under internal control audit and internal control quality under the nature of different property rights and different levels of governance.The research results show that internal control audit can effectively improve the internal control quality of the company;the self-evaluation of management internal control plays an intermediary role between the quality of internal control audit and internal control;the state-owned enterprises and enterprises with good governance have self-evaluation of internal control of management The internal control audit and the quality of internal control play a complete intermediary role;non-state-owned enterprises and enterprises with poor governance,internal control self-evaluation of the management play a partial intermediary role between internal control audit and internal control quality.This article measures the quality of internal control with unaudited quarterly working capital accruals,expands the measurement of internal control quality,and studies the relationship among internal control audit,management internal control self-evaluation and internal control quality.It has enriched the research related to internal control.China’s internal control started relatively late.In recent years,the state has issued internal control norms.However,some enterprises have not yet implemented the regulations.Policy makers may issue relevant disciplinary measures.At the same time,companies may pass “internal control audits—management In the path of internal control self-evaluation—the quality of internal control,the internal control self-evaluation of the management team may be partially or entirely mediating to enhance the internal control quality of the enterprise.