The Research About Effectiveness Of Internal Control System Impacting On The Reliability Of Financial Report

In recent years, a series of financial events such as Joan Min Yuan, Yin Guang Xia,Chang Hong happened,which has caused tremendous influence among the capital market.Enterprise financial reports have taken wide attention on which are the main channelinformation communication between enterprise managers and external stakeholders. Andscholars generally agree that the internal control is one of the main reasons of the financialreporting fraud. But there are all less researches in the theory and practice that how much theeffectiveness of the internal control influences the financial reports and if the effectiveinternal control system can guarantee the reliability of the financial report.In view of this，the study researches the influence of the effectiveness of internalcontrol system on the reliability of the financial report from the economics and the basictheory of audit and from theory analysis and verification. on this based on the summarizationof the literature put forward one’s own research method, then design questionnaire, collectdata, build internal control effectiveness and financial reporting the reliability of the linearregression regression model, the internal control effectiveness and financial reportingreliability empirical test. Concrete variables measuring aspects: build the financial report forthe questionnaire surveys of the measurement of the reliability theory and mode and by thereference of the COSO internal control framework in the theory research, the internal controlsystem of the validity of measurement and empirical research, the formation of different types,different industry enterprises.In this paper, through an empirical analysis，the effectiveness of the internal control hasa remarkable effect on the reliability of the financial report，while the influence of COSOreport internal control elements to the reliability of financial report of our country enterprisesare different level. Therefore, in order to improve the degree of the internal control system tothe reliability of financial reports,put forward relevant advice with China’s reality for internalcontrol system construction.