| Lack of internal controls substantial is the main reason most business failures. Enron,WorldCom financial fraud cases occur so that the voice of the internal control climax, in this context, the United States enacted the "Sarbanes-Oxley Act," the United States follo wed the pace of China’s Ministry of Finance issued a "Enterprise internal control Basic R ules" and "Enterprise internal Control guidelines", marking our internal control standard sy stem basically completed.However, the construction and evaluation of internal control and informatio n disclosure is still in its infancy, and "Enterprise Internal Control Evaluation Guidelines" and when to express their views on the effectiveness of internal co ntrol based on qualitative analysis of "Enterprise Internal Control Audit Guideli nes" based, This has resulted in our overall evaluation of horizontal compariso n difficult. In addition, the internal control self-assessment report and the audit report of the present disclosure, the majority of companies believe their intern al control system is a complete and effective, but obviously there is a big diff erence between the reality of the actual situation. So, in the end what kind of internal control is effective it?Pursuit of enterprise value maximization is the ultimate goal of modern en terprises. Internal control as an integral part of enterprise management, improve enterprise management level and enterprise development strategies, as well as have a good protection role in the regulation of business sectors, to prevent th e occurrence of uncertain aspects of business risk. So, the enterprise value affe cted the effectiveness of internal controls it? I took these questions to start wri ting this article.In this paper, in order to realize the extent of the internal control objectiv es as a starting point, designed to evaluate the effectiveness of internal control systems, and the use of factor analysis as a composite score derived variable effectiveness of internal control alternative. Then in 2013 the Shenzhen A-share board sample company data, regression analysis, our internal controls showed a positive correlation between the effectiveness and business value, namely the effectiveness of internal control, the stronger, the higher enterprise value. I thi nk this may be because of China’s capital market is not very mature, although internal controls by the government attaches great importance to regulators, bu t companies is not necessarily entirely voluntary internal control construction, a fter all internal control construction costs are high, the benefits are slowly high lighted.Innovation, research on the effectiveness of internal control standards First evaluation system designed with the goal to achieve the degree of internal co ntrol, to evaluate the effectiveness of its internal control system as the primary indicators that evaluate the effectiveness of the design of the internal control t he research process in the system.Second, in level indicators under the two ind icators, the number of secondary indicators under each level indicators ranging from factor analysis of the effectiveness of internal control to calculate the co mposite score for each firm, as an alternative variable. Third, the 2013 paper, the latest data, has a strong timeliness of information. |
