Management's Internal Control Evaluation Report On The Implementation Of The Discussion

Responding to financial frauds arose in Enron, Worldcom and other companies, the United States federal government issued Sarbanes-Oxley Act of 2002. Section 404 of the act which extremely emphasizes on effectiveness of internal control in order to guarantee the reliability of financial report is the harshest and most expensive part. According to SEC regulations, all American and non-American issuers are liable to comply with SOX404. SOX404 is a great challenge that for Chinese corporations over 100 companies listed in US stock market has to confront.How to establish and strengthen enterprise internal control is an important study task. This article reviews the historical development of the western theory of internal control, examines the recent development of internal control in China. Make the comparison of the assessment and report systems of the internal control in US and China, and introduce the current implementation situation. Based on the practices in a large Japanese company listed in NASDAQ stock markets,, the writer explored actively in the practice of internal control build and self-assessment based on the requirement of the SOX Act and the design principle of the COSO report. The Paper provides the Chinese companies with a valuable case and experience for their own practice of internal control self-assessment.