Information Disclosure Of Listed Companies Internal Control

In recent years, a series of severely financial frauds--such as the Enron Corporation the WorldCom bankruptcy as well as China's Lam Tin scandals-outbreak, which obviously dampened the investor's confidence in the management of listed companies. After the baptism of the scandal, the internal control is being attached importance renewably. The importance of it is being highlighted in the form of systems in people's constant introspection.At present, China's information disclosure of listed companies, mainly rely on the balance sheets, profit reports, statements of cash-flow and shareholder interests that has been audited by CPAs. This information is important to investors and potential investors. However, the disclosure of such information is merely the company's financial accounting information, which cannot meet the requirements of investors. To a listed company, in addition to the disclosure of the audited financial statements, it must also disclose the situation of the company's internal controls.In view of it, this paper attempts to offer useful references to the establishment of internal control regulatory by analyzing internal control disclosure elements such as disclosure entity, disclosure content and disclosure method.This paper is divided into four parts:The first part is a summarization of internal control information disclosure, bringing forward the classification of internal control as well as other necessary information.The second part focuses on the discussion of disclosure entity. This part recommends the proper entity that should take charge of the establishment and refinement of internal control as well as the disclosure of related information by referring to that of American and Britain.The third part chooses between the whole internal control system and part of it-financial reporting related internal control-as the disclosure content. The feasibility and necessity of this choice is made by referring to that of the United States and considering the cost elements of disclosure.The forth part discusses disclosure method. Assembling to the third part of this paper, the conclusion is got by analyzing both the advantages and disadvantages of voluntary disclosure method and mandatory disclosure method.