Research On The Issue Of Disclosure Of Internal Control Information Of Chinese Listed Companies

In recent years,there have been series of financial frand cases in capital market on domestic and international scales.One of the main reasons is the missing or deficiency of the internal control in listed companies.The act of SOX was passed by the Congress of USA in the 2002,which made restrict legislations to listed companies regarding to their internal control information disclosure in 404 clauses,then after,American internal control information disclosure proceeded from "voluntary" to "mandatory".Domestically,China introduced《Shanghai Stock Exchange Internal Control guidelines》and《Shenzhen Stock Exchange Internal Control guidelines》in 2006,and《Enterprise Internal Control basis standards》in 2008,which stated detailed regulations to internal control information disclosure,and made domestic requests(to internal control information disclosure) mandatory,not only for securities companies,commercial banks and insurance companies,but all listed companies.Hence,internal control and it's information disclosure have become the heat topic in general,on national and global scale.In China,after all,internal control information disclosure emerged with a late start,although the roll-out of two guidelines and the《Basic Standards of Internal Control》have made mandatory requests to information disclosure of internal control,unified standards aren't promulgated and people's knowledge to the importance of internal control information disclosure is still at primary stage leading to lacking of substantiality in information disclosure.This paper is based on the internal control information disclosure within the annual report of listed companies,and establishes the framework,by analyzing the current disclosure status of listed companies.This paper bears both theoretical and realistic meaningsThis paper includes six parts.The first part reviews the domestic and international studies of the current status of the internal control information disclosure issues,as the background of this paper.The second part analyses relating theories,explains the definition of internal control and information disclosure,together with separate elaboration of internal control information disclosure from "Capital Market Efficiency Theory","Information Asymmetry Theory",and "Decision Usefulness Theory" aspects,which are used as theoretical foundation of the following studies.The third part relates to current regulations and legislations,employing descriptive statistics method based on 50 of listed companies from Shanghai A-Stock Exchange as study cases,to analyze the status of internal control information disclosure within domestic listed companies.It also states the existence of lacking of substantiality in information disclosure and missing unified standards of internal control evaluation and verification of certified public accountant,together with explanations of the issues from both of internal and external aspects.The fourth part refers to current status of domestic listed companies,tries to design a framework of internal control information disclosure,based on experience of SOX act.The fifth part prospects the implementation of this framework,together with relating suggestions.The sixth part is the conclusion of this study paper,which summarizes the learning and gains from this study,and deficiency and inadequacy of this paper.