Research On Relative Problems Of Sino-Japanese Enterprise Internal Control Standards

The events of Enron and WorldCom led to the collapse of the top companies of Fortune500, which caused the mass of the American even the world’s capital market. The credit crises shocked the American even the international society, which arouse more and more attention towards the internal control principle. The defect in internal control principle is the key factor which causes companies to fail and cheat on investors and the public. For this reason, many countries legislate to strength internal control of companies which has gradually becomes the necessary element for a company to step into capital market. In July2002, the United States Congress and government rapidly approved "Sarbanes Act". To satisfy the need of the new trend, the Ministry of Finance with Securities Regulatory Commission, Administration of Audit, China Banking Regulatory Commission and China Insurance Regulatory Commission, etc. established Chinese enterprise internal control standards committee in July2006, and set up the Chinese enterprise internal control standards, and published "Enterprise Internal Control Basic Norms" in May2008, and "Enterprise Internal Control Related Directions" in April2010. The Basic Norms and Related Directions form the complete system of enterprises internal control standards in the present stage of China, and will be carried out in the companies OPI in local and overseas market from Jan1st,2011at first stage, then in the companies listed on main board of Shanghai and Shenzhen stock exchanges, afterwards in the companies listed on SME and GEM. Meanwhile it is encouraged to carry out it in non-listed large and medium sized enterprises in advance.As Asian countries, Japan and China begin to value the Enterprises Internal Control Norms under the influence of Sarbanes Act. Finance Business Accounting Council of Japan established Japan Internal Control Institute on January2005, since then started to set up internal control norms. In June7.2006. "Financial Commodity Exchange Act" which called Japanese "Sarbanes Act" was published by Japan Congress, which symbolized that the enterprises internal control evaluation and auditing was involved in range of law. Afterwards Finance Business Accounting Council of Japan officially published " on financial reporting internal control evaluation and auditing standards and relevant financial reporting internal control evaluation and audit criterion formulation (opinions)" on February2007, and started to carry out the business year. However, there were still some problems existing as to the limited time of its practice. On March2011, based on the situation after bringing in the internal control norms, Finance Business Accounting Council of Japan rectified the wrong usage against the original intension in purpose of its effectiveness and practice efficiency in accordance with the performance progress of internal control norms in recent three years, and published the new internal norms in March30,2011. The new norms focused on whether it could accurately reflect the following report of facts and the effectiveness of the internal control frame, and set up the accounting cheat prevention as the following topic. Even though both China and Japan set up internal control norms in reference to American COSO complete frame and internal control norms, it can be found by comparing the internal control norms of the two countries that either country has its own features and there are many features of Japan’s worth our learning, such as Japan’s consideration of lowering costs, increasing the response elements of IT technology in internal control evaluation and auditing specifications, and the range of evaluation and auditing in the specifications, etc. This essay mainly compares the development progress and implementation situation of enterprises internal control norms of the two countries, for the purpose of making conclusion from the comparison and deepening the comprehension of enterprises internal control norms of our countries. and constantly perfect it.This paper is divided into six parts: The first part is the introduction, this part expounds that the significance of the research, the background of the research, then expounds that the literature’s review, the main content of the research and the research’s methods.The second part firstly introduces the development of Chinese enterprise internal control standards and then introduces the main content of Chinese enterprise internal control standards. At last, introduces that the situation of how we are going on putting the standards into effect.The third part expounds the development of Japanese" enterprise internal control standards and then expounds the main content and the situation of amending Japanese enterprise internal control standards newly.The forth part is the important part of this thesis, doing comparative studies in the Chinese and Japanese enterprise internal control standards from the rules and content aspects in both common points and different points.The fifth part of this thesis is also the important part, this part will talk about the suggestion of Chinese enterprise internal control standards in according to what we have summarized the characteristic and the promblem of Japanese enterprise internal control standards.The sixth part of the article will talk about the innovative points and shortcomings and problems need to be further investigated.