Research On Disclosure And Improvement Of Internal Control Defects Of Listed Companies

Due to the outbreak of the Enron incident in the United States,the global emphasis on enterprise internal control has been greatly enhanced.The Audit Committee of the United States issued the " Sarbanes-Oxley Act" to strengthen the supervision and management of the internal control of listed companies.In 2008,China promulgated the Basic Standards for Enterprise Internal Control,requiring all enterprises listed on the domestic main board to conduct self-assessment of internal control regularly and disclose the evaluation results to the public in a timely manner,so as to ensure the effectiveness and sustainability of enterprise internal control.At the same time,external audit should be conducted and internal audit reports issued by accounting firms should be disclosed.Since then,information of our country internal control enters mandatory disclosure era,but disclosure effect is not satisfactory.Investigating the disclosure of internal control flaws in listed companies can not only help businesses to become more cognizant of internal control construction,enhance the disclosure process for information,and upgrade the quality of internal control reports,but also caution investors to be more attentive to the real business circumstances of enterprises,to heighten the pressure and enthusiasm for disclosure of internal control reports,and to boost the level of internal control.Based on the theory of information asymmetry,principal-agent theory and signal transmission theory,this thesis uses statistical analysis method and case analysis method to study the internal control defect information disclosure of listed companies and its improvement.First of all,453 listed companies listed on the main board of Shenzhen Stock Market as of December 31,2020 were selected as samples,and relevant internal control self-evaluation reports and internal audit reports were consulted for internal control index analysis,identification criteria analysis of internal control defects and specific classification analysis of internal control defects.It reveals the internal control defect disclosure status and disclosure quality of sample companies.It found the problems existing in the disclosure of internal control defects of sample listed companies,including unreasonable disclosure ratio,non-standard identification standards,imperfect rectification measures and disorganized disclosure format,and analyzed the causes of the disclosure of internal control defects from various aspects.Taking Y Company,which has significant defects for three consecutive years,as an example,this thesis studies the disclosure of internal control defects of Y Company,puts forward the existing problems and analyzes the causes.Finally,combined with the above mentioned internal control defect disclosure problems,from the internal and external aspects of the company,put forward targeted improvement suggestions.