Internal Audit,Effectiveness Of Internal Control And Quality Of Financial Reporting Research

With the increasing globalization of economic development,the external environment faced by enterprises has also changed,the uncertainty of enterprise management has increased,and the difficulty of facing challenges has intensified.Therefore,the focus of enterprise management has gradually shifted to risk and strategic management.With the frequent exposure of financial scandals of listed companies,it shows that the internal governance structure of companies is unreasonable and there are defects in internal governance.As one of the means of internal governance,internal audit has gradually become the focus of attention around the world.Internal audit is an independent activity to help organizations achieve their goals by evaluating the effects of enterprise risk management,internal control and corporate governance.As an internal management control mechanism to ensure the effective performance of entrusted economic responsibility of enterprises,internal audit plays an irreplaceable role in the interaction with internal control and corporate governance,which is closely related to each other.Specifically,it evaluates and supervises the implementation of internal control and puts forward constructive suggestions for improving internal control,so as to improve the effectiveness of internal control and further improve corporate governance.To prevent the occurrence of financial fraud and improve the quality of financial report.In this context,based on the fiduciary responsibility theory,information asymmetry theory and management process theory,this paper analyses the relationship between the quality of internal audit,the effectiveness of internal control and the quality of financial report.Based on the enterprise data of listed companies on Shenzhen and Shanghai motherboards from 2015 to 2017,this paper investigates the internal audit status of Listed Companies in China.Using single and comprehensive indicators,the internal audit quality is measured by the independence of internal audit,the disclosure of internal audit system and the scale of internal audit department.From the perspective of third-party certification,the quality of financial reports is measured by the type of audit reports.The relationship between the quality of internal audit and the quality of financial report;the relationship between the quality of internal audit and the effectiveness of internal control is empirically analyzed by using the index of internal control in Dibo database as the index to measure the effectiveness of internal control;at the same time,taking the effectiveness of internal control as an intermediary variable,the relationship between the three is empirically analyzed,and whether there exists intermediary action between internal control factors or not.Use,and how it works.Through empirical research,we draw the following conclusions: internal audit is directly proportional to the quality of financial report,that is,the more perfect internal audit is,the higher the quality of financial report is;internal audit is positively related to the effectiveness of internal control,that is,the more effective the function of internal audit is,the better the effectiveness of internal control is;the effectiveness of internal control is regarded as an intermediary variable and cooperated with internal audit.For the quality of financial report,we find that there is a significant positive correlation between them and the quality of financial report.