A Study On The Validity And Influence Factors Of Listed Company’s Internal Control Self-assessment Report

Internal control self-assessment as a re-control means of internal control is anecessary part to achieve the internal control objectives. The implementation ofinternal control self-assessment has a positive effect for an enterprise to strengthenmanagement, improve labor productivity, and improve internal audit procedures andbusiness processes and control risk.Enron in2001and the subsequent series of large-scale corporate fraud shockedthe world. Reviewing these cases, we can find that most of the businesses have asystem of internal control, but these are useless, because of lacking or incomplete inself-evaluation mechanism. So a regular self-evaluation is very necessary for themanagers to grasp the real situation of internal control and found its weakness, thenthey can find ways to improve it. And it’s also very important to improve managementand promote the healthy development of enterprises.Given the above, the world-wide has begun to strengthen the supervision of theinternal control of listed companies since from2002. In July2002, the U.S. Congressenacted the Sarbanes--Oxley Act, which has a strictly regulatory requirement oninternal control and its disclosure. After that many of the developed countries alsoissued their own framework or specification of the internal control of listed companies,to promote their supervision on the internal control. As the same way, China has alsolaunched a series of internal control systems and regulations."Basic Norms of Internal Control" has been already implemented more than ayear, how is it being implemented now? Are there any problem? To study these casesand put forward some suggestions for improvements, I selected the main board listedcompany of Shenzhen Stock Exchange in2010as a sample, established a score sheetto judge the effectiveness of internal control self-evaluation report, and then created aregression equation factors to analyze the results of this sheet.