Study The Construction Of Internal Control System In Public Company

As an important fundamental element in the society and economy, company has great effect. It speed up invention, improve the level of living, give the most assist for the people. But the actions processed by the company have more influence to the society than individual. It is necessary to give limitations on the company behavior for the development of economy and for the right and justice. We can get the conclusion easily from the act such as antitrust act, anti unfair competition law, consumer protection act are put into implementation in developed and developing countries continuously that the general tendency of strengthen monitoring on the companies behavior in different countries. Public companies get the money from capital market by issue stocks. Investors become shareholders of the company through buy the company stocks. In order to protect investor's legal rights and benefits, maintain healthy development of the stock market, it is necessary to emphatically monitor on the public companies behavior. From the implementation of Securities Exchange Act of 1934 and relative act enforced thereafter, we can find the tendency easily. In the face of the influence caused by fraudulent financial statements and accounting scandals disclosed about companies such as Enron and WorldCom, the Unite States president promulgate the Sarbanes-Oxley act for the purpose to improve public companies corporate governance level, to win back the public confidence, to protect the investors benefits. The act has strengthened accounting and internal control supervision of the public companies from several facets. The monitoring of internal control has been involved in the scope of government monitoring, From these fact we can get the conclusion that it is very important of internal control in improving financial reporting reliability and protect shareholders benefits. So it is worthy of studying about how to monitoring the internal control of the companies.This thesis makes some suggestions on internal control monitoring of our public companies based on the research and studying of Sarbanes-Oxley act and the experiences of American public companies. From the studying of Internal control theory, of the present situation of our countries public company internal control, of monitoring regulatory and supervising tendency of the china securities regulatory commission, get the conclusion that we should construct our country's internal control system and information disclosure regulatory Through strength internal control monitoring from three facets-internal control supervised by the company,internal control supervised by the society,internal control supervised by the government in order to improve our management effectiveness and efficiency.