Research On Internal Control Self-assessment Of Listed Companies In China

The series of cheating scandals in the USA securities market exposure the deficient in the listed companies'internal control. So the act of SOX was passed by the Congress of USA which point out seriously that the listed companies should disclose their internal control information in 404 clauses. The aim of the act is to set up the effective system to regulate the listed companies and recover the confidence of the investors.Recently there had been emerged several cheating scandals in our securities market. One of important reasons is the missing of the internal control, which is the key factor to the companies'performance and the reliability of financial information. Especially the issuance of SOX act, our government should use it for reference to establish the system to consummate the internal control and its information disclosure of listed companies in our securities market. Then China Securities regulatory commission issues a series of statutes to guide the disclosure of the internal control information. But the realistic situation of the disclosure is not satisfied. Because on the one hand, the regulations themselves exist several problems; for the other hand, there is not motivation for listed companies to disclosure.In order to promote and guide listed companies to establish an internal control system, as well as raising the level of risk management and protecting the legal rights and interests of investors. Shanghai Stock Exchange promulgated the "internal control guidelines for listed companies in Shanghai Stock Exchange" on June 5, 2006. Guidelines require listed companies to assess the company's internal controls and disclosure internal control self-assessment report together with the annual report. The writer began to system thinking of listed company's internal control self-assessment because of that, the writer hope to give you a clear perspective to understand the internal control self-assessment, and provide some information to our listed companies for how to effectively assess internal controls through researching the self-assessment's standards, assessment methods, and the concrete implementation of the assessment process and the form of the final report of the internal control self-assessment.The idea of this paper is as follows: Preface; Theory analysis; Implementation design; Defect assessment; Foreground prospect.This paper contains five chapters:Chapter One PrefaceThis chapter discusses the research background, purpose and significance, and the status quo at home and abroad as well as major research methods and content, and lay the foundation for later in writing.Chapter Two The necessity and feasibility of internal control assessmentAt the beginning of this chapter, the writer introduces the internal control's development process, definition, the overall framework and purposes, the type and installed principle, then explain the necessity and feasibility of internal control self-assessment through the outstanding issues of internal controls work of listed companies, in order to provide the theoretical premise for later discussion.Chapter Three The process of internal control self-assessment of listed companies This chapter is the key chapter of this paperThis chapter deals primarily from the internal control self-assessment, standard, the preparatory work, the assessment methods and other aspects of the evaluation process, in order to complete the building of the concrete implementation process of internal control self-assessment. First, the writer introduces the major content of internal control self-assessment and its preparatory work; then Construct the concrete steps of the internal control assessments based on nailing down the internal control self-assessment's way and the principles of choice.Chapter Four The identification in internal control deficiencies and the form of assessment reportThis chapter is as important as chapter three.In this chapter, the writer divide the company's internal control into three categories to research, they are control activities (that is, all business processes), the overall information system control and the internal control factors except for overall information system, and identify a variety of the defects evaluation process. And also constitute an explanation on how to determine whether exceptions are the internal control deficiencies. The author also discusses the certification, defect rectification and the self-evaluation report's generation after the general completion of assessment, the writer are also trying to design the reference format of listed companies'the internal control self-assessment reports.Chapter Five The forecast of internal control self-assessment of listed companies in ChinaThis chapter discusses that our country should establish sound internal control standards, in order to guide evaluation of internal control. At the same time, there is also a need to develop the standards of practice of registered accountants, for the purpose of setting up better circumstance.Making a general survey of this paper, the characteristics of this paper are as follows:First, the writer has a more systematic study in the self-assessment of internal controls in light of China's actual situation, and provides own views on the concrete implementation of the internal control assessment process through the assessment's content and criteria, the preparatory work, internal investigation, internal control tests, assess and report, and so on.Second, this paper tries to design the reference formats of the various working papers of internal control evaluation, and also designs the reference format of report according to the main contents of the internal control self-assessment report.Third, this paper tries to identify a variety of process in the defects'evaluation.Because of the limit of experience and research level, the paper needs further perfection. I would appreciate very much if teachers and classmates give me suggestions. I will get on my research further in this filed.