Research On The Standard System Of Internal Control Defects In Listed Companies

Defect standard is the basis of internal control defects identified. At present, there is no specific internal control standards for the defect.It is given only for the principle. This paper chose Shanghai and Shenzhen Main Board listed manufacturing companies, analyzed their internal control evaluation report released in 2015, classified defect standard, found that defect standard was not specific and incomplete. The language expression in standard is not clear.The defect standards lack of standardized, comparable. The disclosure of material deficiencies or significant deficiencies was less. From the statistical data, up to December 31, 2015,there are 827 Sample Companies, only 89 listed companies disclosed internal control deficiencies, accounted for10.76%, of which only 27 companies revealed material or significant deficiencies, accounted for 3.26%.Our country has not yet formed a unified internal control defect standards. The listing Corporations have a lot of maneuverability to identify the defects of internal control, so that the defect identification becomes a mere formality. Internal control information lacks of reliability and authenticity. In this context, we should build a unified internal control defect standards, to strengthen supervision, to standardize the identification of defects, and to improve the quality of internal control information.This paper reviewed the relevant literature at home and abroad, classified researches on internal control defects, identification standards, identification and disclosure of defects. Choosing manufacturing listing Corporations as the research sample, analysis of its defects disclosure and standard setting. After a large number of in-depth theoretical research and practical summary, constructs a set of specific defect standard system from the angle of the five elements of internal control, and choose SJF for the case of inspection.