The Research Of The Internal Control System On The Basis Of Accounting Information Distortion In China's Corporations

The paper begins with analyzing corporate accounting information distortion, and then studies some important areas mainly, such as the relationship between accounting information distortion and internal control, empirical analysis of accounting information distortion, and the way of building internal control system to solve accounting information distortion,etc. hope the research could help to improve corporate governance of china, improving internal control.This article consists of three sections: the first section is preface, the second section is from Chapter 1 to Chapter 4 which contents are theoretical and empirical analysis, the third section is chapter 5 which mainly contents are suggestion on policy. In section one, the article analyzes the negative effect of accounting information distortion, summarizing the development character about accounting information distortion problems in China and experience of applying internal control to solve accounting information distortion. At last, briefs the structural point of the whole thesis.Section two covers Chapter 1 to Chapter 4, Chapter one begins with analyzing two basic definitions, accounting information distortion and corporate internal control system. Then, the paper analyzes the theoretical relationship between them. Chapter two studies the root cause of accounting information distortion as well as establishing internal control system to resolve accounting information distortion based on institutional economics and contract economics. Chapter three is the empirical analysis of accounting information distortion based on the sample data from listing companies who are punished for accounting information distortion. The conclusion is that corporate internal control is one most important control variable. Chapter four analyzes the gap between developed countries and China in corporate internal control development and the direction that we should strive for in the future.Section three is chapter 5, this section concentrates on the analysis of how to establishing an effective internal control system to solve accounting informationdistortion problem, and realizable strategy we should apply which is suitable for Chinese enterprises to establishing their internal control system.