The Research Of The Impact Of Enterprise Internal Control Effectiveness To Z-Score Model’s Financial Early Warning Ability

In modern enterprise management, risk management has been high attention gradually. Recently, with the internal control frame system is put forward and perfect, the assessment and indentification of the effectiveness of enterprise internal control has gradually become the important basis of measuring enterprise risk. And represented by Z-Score model of financial early warning model for discovering enterprise bankruptcy risk in time, reversing loss and steming business failure that may occur in the future made outstanding contributions. Through sorted out domestic and abroad literature, discovered the existing research have been argued theoretically or measured qualitatively of the internal control systems or financial early warning system from different perspective. There are less research that combined the internal control system with the financial early warning system. Even if there are some research for attempting to explore the relationship between the two systems, they also mostly stayed in the theoretical demonstration and qualitative analysis, whereas rare quantification of the internal control effectiveness and an empirical study of relationship between them.This article combines internal control and financial risk early warning that the two major risk systems on the basis of summarizing the work of predecessors, and discusses the similarities and differences and the coupling between them from several angles. And on this basis, selecting the part of the financial data of Chinese listed companies as samples, and making empirical research of the relationship between the effectiveness of internal control and the ability of financial risk early warning of Z-Score model, then some conclusions are drawn. The innovation are mainly measuring the enterprise internal control status and digging the relationship between the effectiveness of internal control and the warning ability of financial early warning models deeply. On the specific research methods, also dividing the listed company financial data based on attribute into ST companies and ST,*ST companies, and making linear regression of econometric model. The process eliminates the invalid samples, selects the control variables strictly, and does the descriptive statistics analysis research, passed the robustness test by using SPSS statistical software to draw the research conclusion finally. The conclusion shows that there is a positive correlation relationship between the Z-Score model with the internal control index for the non-ST companies, which conform to the hypothesis proposed in this paper; and there is no evidence to suggest that existing linear correlation between ST and*ST companys’ financial early warning ability and the internal control effectiveness, this may be due to the inherent constraints and limitations of this study. Hoping through the article, that there are contributions to the research of internal control and fiancial early warning which under the guidance of risk, and can also provide positive guidance significance to the assessment and resposing risk of modern enterprise’ accounting, auditing and financial management practise effectively.