Empirical Study On The Effectiveness Of Internal Control Of Xinjiang Listed Companies

With the frequent occurrence of financial fraud incidents at home and abroad,preventing risks and strengthening internal control has gradually become the focus of attention.China has promulgated the "Basic Standards for Internal Control of Enterprises" and "Guidelines for Enterprise Internal Control Support",requiring enterprises to implement internal control and document guidance,but whether its implementation effect has played a role,it is necessary to evaluate the effectiveness of internal control.The evaluation of the effectiveness of internal control can test the implementation effect of the documents promulgated by the government on the one hand,and verify whether the internal control of the enterprise plays a role on the other hand,so as to facilitate the discovery of defects for rectification.This paper combines COSO internal control integration framework and internal control objectives to construct an internal control evaluation system,while paying attention to internal control process elements and internal control objectives.The indicator system is based on the five elements of internal control as the first-level indicators.The selected second-level indicators include: 21 indicators such as shareholding holding company,chairman and general manager,concurrent ownership,illegal concentration and illegal behavior,etc.Screening,using entropy weight method to empower each index,constructing the internal control index of listed companies in Xinjiang,and analyzing the effectiveness of internal control of 142 listed companies in Xinjiang from 2015 to 2017.The study found that the majority of the internal control scores of listed companies in Xinjiang are between 4 and 60 in the overall effectiveness of the internal control scores.The maximum effectiveness of the internal control scores of the wholesale and retail trades is 4A,and the energy supply industry has the lowest score.At the 3A level,the biggest fluctuations in scores are agriculture,forestry,animal husbandry and fishery.The smallest fluctuation is the wholesale and retail industry;according to the nature of the enterprise,the highest efficiency of the internal control scores of the central state-owned enterprises is at 4A,and the lowest value of local state-owned enterprises is at 3A.The internal control scores of private enterprises fluctuated the most,and the scores of central state-owned enterprises fluctuated the least.According to the five-element dimension,the maximum effectiveness of internal control scores of control activities was at 5A,and the lowest effective score of risk assessment was at 2A.The biggest is the internal environment.The smallest fluctuation is information and communication.From the perspective of internal control defect disclosure,the disclosure of internal control related information is in the form of lack of authenticity.From the perspective of the type of office,the excessively dispersed audit market Reduced the quality of internal control audits and affected the effectiveness of internal controls The reflection of the litigation matters and violations of the law,it can be seen that the internal control of the enterprise does not reflect its role in reducing the occurrence of such incidents,indicating that the company does not pay enough attention to internal control.In order to improve the effectiveness of the internal control of listed companies in Xinjiang,the government management department should strictly supervise the information disclosure of internal control of enterprises,raise relevant requirements,and strengthen supervision of the energy supply industry and construction industry as well as local state-owned enterprises.Supervision and management;enterprises should pay more attention to internal control,strengthen the management of internal control systems and systems,conduct more detailed risk assessment of enterprises,and improve the accuracy of risk assessment.