Quality Of Internal Control Report Based On Factor Analysis

Since the exposure of the "Enron Incident" in 2001,the "WorldCom Incident" that followed has caused the order of the capital market to be disrupted.Subsequently,the Sarbanes-Oxley Act,which was urgently promulgated by the US Congress,brought a new dawn to the capital market.In recent years,the continuous fermentation of the "Sanlu milk powder" and "longevity organisms" events in China has once again proved the importance of internal control.As early as 2002,the relevant provisions of internal control information disclosure were explicitly mentioned in the Sarbanes-Oxley Act,and the internal control report was used as a carrier for transmitting internal control information.The purpose was to record non-financial information related to internal control and public disclosure.This measure not only serves as a reference for the company’s internal control in the future,but also helps the government departments to supervise the internal situation of the company.This paper uses the methods of literature research,normative research and empirical analysis to evaluate the quality of internal control reports of Shanghai and Shenzhen A-shares in the five northwestern provinces.In the research,combined with internal control,auditing,statistics and other related expertise to apply.Through the summarization of related literatures and related theories of internal control evaluation,the relationship between principal-agent theory,signal transmission theory,effective market theory and information asymmetry theory and internal control information disclosure is sorted out,and high-quality internal control reports are obtained.It will bring economic benefits to the company and become the conclusion that more investors choose their prey.Subsequently,this paper takes the decision-making usefulness and response fiduciary responsibility as the starting point,establishes a multi-level evaluation model,and uses the factor analysis method to study the internal control report quality of the sample data,and extracts the five common factors that affect the weight of the internal control report.The common factor is to find out the problems in the corporate report with low internal control report scores.And there are targeted ways to solve the problem.In the process of sample selection,this paper collected the Shanghai and Shenzhen A shares of the five northwestern provinces 2015-2017 as the research object.In recent years,with the implementation of the "Belt and Road",the economic development of the five northwestern provinces has been rapid,but as China’s inland cities,the special geographical location and regulatory environment of the five northwestern provinces make the overall quality of enterprises still relatively backward compared with other regions..As one of the core strengths of economic development,listed companies should improve their internal control system and disclose high-quality internal control reports on time,protect the interests of investors while safeguarding the development of enterprises,and facilitate the supervision of the government and the public.At present,there is still a lack of recognition on the quality of internal control reports,and even no relevant laws or regulations describe what internal control reports are truly high-quality standards,based only on basic norms,supporting guidelines or given reference formats.The completed internal control report does not reflect the company’s substantive problems.However.if you want to build a reasonable evaluation system for the quality of internal control reports,it is not a problem that can be solved overnight.This paper takes the five northwestern provinces as samples,and obtains the factors affecting the quality of internal control reports.According to the influencing factors,the root causes of the problems are found,and the way to improve the quality of internal control reports is given.