Research On Internal Control Information Disclosure Of Listed Companies In Sino-american Environment

In 1992,the COSO Committee in the United States released the COSO report during a period of heightened financial risk,increasing financial fraud,and high expectations for internal control from various sectors of society.In 2001,the Enron scandal prompted the United States to enact the Sarbanes-Oxley Act(SOX).Taking cues from the COSO report and the SOX Act,the Chinese Ministry of Finance and four other departments promulgated the "Basic Standards for Enterprise Internal Control" and the "Guidance on Supporting Enterprise Internal Control" in 2008 and 2010,respectively.Some Chinese listed companies are not only listed domestically but also in the United States.However,there is a lack of research on the internal control information disclosure of these companies that are listed in both China and the United States.Therefore,research on the internal control information disclosure of listed companies in the environmental context of China and the United States is urgently needed.This article explores the internal control information disclosure of listed companies in the environmental context of China and the United States.It first discovers that in the United States,the main regulatory documents for internal control information disclosure of listed companies are the SOX Act,PCAOB Auditing Standard No.2,and PCAOB Auditing Standard No.5.In China,the main regulatory documents for internal control information disclosure of listed companies are the "Basic Standards for Enterprise Internal Control," "Guidelines for Enterprise Internal Control Evaluation," and "Guidelines for Enterprise Internal Control Audit." It also finds various issues in the disclosure of internal control evaluation reports in the United States,such as lack of consistency,lack of standardized guidance,operational complexity,and constantly changing regulatory and compliance requirements.Similarly,there are problems with the disclosure of internal control audit reports in the United States,including low comprehensibility,untimely reporting,insufficient scope and depth of evaluation,lack of independence and quality of auditors.In China,the disclosure of internal control evaluation reports of listed companies faces issues such as inconsistent report quality,lack of independence,opaque information disclosure,inconsistent evaluation methods,and lax regulatory enforcement.The disclosure of internal control audit reports in China suffers from problems such as inconsistent quality,technical complexity,conflicts among stakeholders,lack of consistency,and lack of transparency.Furthermore,specific issues related to the internal control evaluation and audit reports of China Huaneng Group International in both the Chinese and U.S.environmental contexts are identified.Finally,in response to the aforementioned issues,the article proposes recommendations to strengthen cross-border regulatory cooperation between China and the United States,improve the internal control information disclosure system of listed companies,enhance the requirements for the disclosure of internal control evaluation reports,standardize the internal control evaluation process,strengthen the internal control governance structure of listed companies,improve the quality of audit reports,and enhance the training of internal control audit professionals.