The Influence Of Internal Control Quality On The Voluntary Disclose Of Internal Control Audit Report

In recent years, internal control audit disclosure has got more and more attention from academics. On one hand, the quality of the companies’ internal control audit disclosure, not only reflects whether they have established their own internal control system, but also affects the judgments and decision-making of investors, creditors and regulators. On the other hand, Stock Exchange and Regulatory authorities gradually strengthen the supervision of the internal control system of listed companies, internal control audit disclosure mechanism is becoming more and more mature. Therefore, the study of internal control audit disclosure of information has great practical significance.This paper studies on internal control audit report disclosure status of China’s listed companies from 2007 to 2009. First of all, it defines the scope of internal control audit report disclosure of China’s listed companies. Secondly, it analyzes the collected data of disclosed internal control audit report by descriptive analysis, and finds out the problems of current internal control disclosure. Thirdly, based on the internal control audit report disclosure data of sample companies, it analyzes the relationship between the quality of internal control and the voluntary disclosure of internal control audit report, the empirical results show that companies of high quality in internal control are more willing to disclose their internal control audit report. To be specific, companies that have big size, short listed years, good profitablitity, no violation and receive standard audit opinion are apt to disclose internal control audit report.Based on the present situation of internal control audit report disclosure of China’s listed companies, this paper puts forward some policy recommendations on China’s internal control audit report disclosure system, on the purpose of regulating the internal control audit report disclosure activities of listed companies, and improving the internal control audit report disclosure system, so it can provide empirical evidence for the design of the internal control audit report disclosure system in the future.