Empirical Research On The Process Control-oriented Evaluation Of The Internal Control And On Its Influent Factors

Internal control is the control of internal economic activity within the enterprise. Themain difference between internal control and other management is the former’s emphasis isprocess control. The evaluation object of internal control is the implementation proceduresof internal control. The five elements of internal control precisely play a role togetherthroughout the process of implementation of internal control.For different objectives of internal control, the meaning of effective internal controls isdifferent, and the content of reasonable assurance is also not same. Many factors affect thecompany’s internal control effectiveness, one particularly prominent of which is thecorporate governance structure. Sound corporate governance structure is the core of themodern enterprise management system, which is assurance the effective operation of thepremise and foundation of the internal control system. Therefore, based process controltheory the thesis is trying to build internal control evaluation index system. And the maintarget of it is to evaluate the operation of the five elements of internal control. Standing on acorporate governance point of view this article study the factors affecting the effectivenessof internal control of listed companies in China, which order is to explore the way toimprove the effectiveness of its internal controls by improving corporate governance.Based on process control thought, this paper researches on the company’s internalcontrol effectiveness, starting at the characteristics of corporate governance, First, thestudies on internal control effectiveness and corporate governance of domestic and foreignscholars were reviewed; Second, relevant theoretical analysis of internal controleffectiveness and evaluation and corporate governance is studied on. And this articleanalyzes and elaborates the relevant relationship between the corporate governance andinternal control effectiveness; Based on the theory this paper studies the status quo ofinternal control effectiveness of China’s listed companies in Shenzhen. And then anempirical study on the effectiveness of internal control unfolds from both aspects of theinternal corporate governance institutions and he external governance structure. Finally,according to the conclusions of empirical research, recommendations are put forward forbetter implementation of the internal control of listed companies in China based on thecorporate governance view.