Related Research Of Internal Control And Financial Performance

In2008,"internal control of the basic norms" introduced once again improves the internal control of the discussion to a climax in China. Unremitting the academic community explore how to improve the internal control system theory, at the same time, The efficiency of internal control which practitioners generally concerned about has becoming a new spot. Promoting the internal control is always in order to stabilize the business environment, prevent risks and improve operational business performance. However, the effectiveness of internal control activities to obtain exactly is not yet a unified index system.Internal control has two functions, namely as an audit methods and as the management method of internal control. In comparison, The Angle of the management view of the internal control research has more realistic significance. With the environment changing, management will become more important instead of the perspective of internal control audit. This paper will be based on the perspective of management to research the internal control, and build internal control framework which contains7elements. The7elements are control environment, objectives and budget, risk identification and deal with, control procedures and methods, information and communication, performance evaluation and incentive and monitoring.This article evaluates internal control level from the view of management, and observes internal control results from the performance index. With companies from Shenzhen and Shanghai stock exchange as a sample, on the basis of theoretical analysis, the author examines the relationship between internal control and the enterprise performance and tests the relationship between internal management control and the enterprise performance. At the end, the author obtains the conclusion that the overall level of internal control and financial performance is significantly positive correlation. However, from the result we obtain, our country’s internal control has some shortages. For example, managements have subjective dynamics, and internal control lag enterprise performance growth. Finally, the author puts forward company internal control countermeasures and suggestions based on the existing problems.