The Influence Of The Capital Market And Audit Firm On The Internal Control Disclosure Report

The factors that influence internal control information disclosure report have a lot,most of previous theoretical research focus on enterprise features such as the overall scale, debt ratio and other factors.However,they paid little attention to the factors: capital market and accounting firm.This paper uses case analysis method introduced in two case companies, intent to explore how the capital market and the audit firm affect the quantity and quality of the case company’s internal control disclosure. Case companies all started in China, but there is a big difference on its internal control disclosure. Through comparison, the author found that there are only two different factors, one is the capital market, the two is the choice of audit firms. Through comparative data and field survey, I found that the capital market have influence on these four aspects disclosure form, the quantity and quality of disclosure of internal control,internal control system and disclosure cost, and Listed in the United States will have an positive effect on the first three aspects, but will also bring the enterprise a high cost of disclosure.in the paper I will have a specific analysis on these effects. In addition,the choice of big four or other local accounting firm will also have impact on the quality of disclosure of internal control and disclosure cost.Generally speaking,the use of big four usually bring better disclosure quality but also a relatively higher cost of disclosure, which is another focus of my study. At the end of this paper,i put forward feasible suggestions to the case company to enhance their internal control disclosure level in future, hoping to help the business case or other enterprises in the same situation to carry out their internal control disclosure more efficient and cost saving.