Research About The Relationship Between Disclosure Of Internal Control Information And Audit Opinion

The Modern Corporation governance theory think that effective corporate governance Can not leave a good internal governance mechanism and the organic combination of external supervision mechanism. Information disclosure play a good role in promoting the company’s internal and external governance mechanism of cooperative for the public enterprises. Therefore, the quality of information disclosure will have a direct impact on Corporate Governance. At present, research on the internal control information disclosure is not so attractive like financial information disclosure. However, with the market parties understand the importance of the internal control of the continuous improvement that Internal control information disclosure will also become the focus of financial information disclosure, So the research on internal control information disclosure issue necessary theory, also has practical significance in practical application.Effective internal control can inhibit the management of accounting information wanton manipulation and reduce the risk of the financial statements of accounting information false, so as to improve the quality of financial reporting. With the "basic norms of internal control" of the enactment in2008, the disclosure of internal control information has attracted great attention and concern in the market parties. Especially the Ministry of Finance and other five ministries issued "enterprise internal control guidelines" provisions since2012require listing Corporation to implement a series of perfect of internal control information disclosure requirements is the disclosure of internal control information system construction to a new level. About the disclosure of internal control information regardless of whether it is of important value in the perspective of enterprise managers and investors in the market point of view which has been confirmed by many related research. But the disclosure of internal control information for the audit opinion also produces very worth exploring if we can start to the auditor’s perspective, we can stands in the auditor’s view In order to study the internal control disclosure rules generated and implementation. so this article choose these listed companies in Stock Exchange of Shanghai and Shenzhen which in the2012as the research object. This article hope to use theoretical analysis and empirical test for seeking the internal connection and empirical evidence about disclosure of internal control and audit opinion.The disclosure of internal control information, is refers to the enterprise management authorities according to the relevant standards for internal control evaluation to evaluate the rationality of the design of the internal control of enterprise and the effective execution and issue opinions, after the CPA audit opinions issued after the final form to report regularly provided to the external information users. It is an important content of the internal control system of the listing Corporation. A lot of information about the disclosure of internal can not find in the financial report, so it has important significance for listing Corporation to transfer the effective information to the market and protecting the investors’ right to know. On a deeper level, internal control information disclosure involves multiple agents, which is not only involving the investors in the market, but also including the government, regulators, industry self-discipline organization, listing Corporation and its internal members of multiple. internal control information and its disclosure has important economic value, the economic consequences also proved that the capital market is not sufficient and effective. Therefore, the internal control information disclosure is not only the government and regulatory requirements, market all parties should pay much attention to it, so that we can together form the effective practice environment.At the same time, the firm, audit opinion is a certified public accountant the legitimacy and fairness of the audited units to provide the financial report of the conclusion, it is important to consider investors and stakeholders in the decision making. Therefore, standing on the auditor’s view, in order to reduce the audit risk of failure and the loss of internal control information disclosure, influence on the auditing opinions is meaningful. There is a need to explain that previous studies about the relationship between internal control and audit opinion research focus on the type of audit opinion are concentrated on the factors of audit opinion and internal control of the issued. But the effect of internal control disclosure for itself and affecting factors for external audit opinion brings are less concerned. The core of this article is that by setting the assumptions associated factors of information disclosure of internal control. which prove the information disclosure of internal control and audit opinion has an important association Through the empirical analysis to verify the situation of internal control information disclosure will ultimately affect the financial report of the audit opinion.In2007, China began to implement the new auditing standards, which marks a shift in the CPA’s audit risk from focus on the risk oriented audit to business risk oriented Auditing. At the same time, the new guidelines focus more on the assessment of the risks of material misstatement of the enterprise, the enterprise internal control the implementation of the quality and the risk of material misstatement of financial statements has important and direct relationship. A measure of audit risk cannot do without internal governance, the disclosure of internal control is the connecting carrier of this relationship. Therefore, a detailed discussion on the method of combining theoretical analysis and Empirical Study of the relationship between the information disclosure of internal control and audit opinions of listing Corporation. The theoretical analysis is based on the summary of related literature at home and abroad, through the introduction of internal control and disclosure of the meaning, and the important role the evolution course illustrates the important relationship between information disclosure of internal control and audit opinions. At the same time, this paper selects the Shanghai and Shenzhen stock market listing Corporation in China in2012as the research sample, makes an empirical test on the relationship between the two, the results show that the information disclosure of internal control and the non standard audit opinion is significant negative correlation, and listing corporation disclosure of internal control deficiencies is positively related to the non standard audit opinion. Finally, according to the results of empirical research, to improve the information disclosure is put forward some suggestions and Research on internal control of listing Corporation.This paper has six chapters, the main contents are as follows:Chapter1ExordiumThis chapter includes the research background, research ideas, research methods, research framework and research contributions. In the research background, this chapter introduces the background of the internal control disclosure of internal control has become a hot topic of concern; secondly, this paper extends through the disclosure of internal control into the CPA’s perspective, the theory meaning and realistic meaning are analyzed; in the research methods, this chapter selects for normative research method and empirical research methods were introduced; then, this chapter charts clearly show the structure of the framework; finally, this chapter points out the research topic selection significance.Chapter2Literature ReviewThis paper is divided into three parts to study literature review:the first part is related to the internal control of the foreign and domestic literature review. Through the literature shows, will the internal control has important influence to the company’s operating risk and financial risk. Only attach importance to and strengthen the construction of internal control enterprises in order to effectively improve the quality of accounting information, reduce the risk of financial fraud; the second part is the overview of domestic and foreign literature the role of internal control information disclosure. Through the previous research can have important influence that internal control disclosure and corporate business situation and financial situation, which has important reference value for the analysis of the current development of the company. The third part is the impact of control for CPA caused by internal to the foreign and domestic literature review. Relevant literature shows the types of audit opinions related to many factors and internal corporate governance will directly affect the issued by certified public accountants. At the same time, some of the literature also shows that the effective internal control information disclosure will affect audit judgment, this also is to study and discuss the foundation.Chapter3Theoretical Basis and System BackgroundThis chapter first for the relevant definition of the concept are described, the first from the internal control to the internal control information to the information disclosure of internal control. In the relevant content of the expression, according to the different emphasis of the research, therefore has also carried on the detailed slightly with the description of different concepts; secondly, this chapter introduces the disclosure of internal control information system for the development of background, including the process of system development of USA and China are reviewed; then, this chapter combines the market the reality of the important significance of information disclosure of internal control, and made a simple statistics and analysis of the practice of new system; finally, this chapter for why businesses need to internal control information disclosure and how to select the related theory of CPA audit opinions were analyzed and reviewed.Chapter4Theoretical AnalysisIn this chapter, the definition of internal control and information disclosure are elaborated; followed by analysis of the importance of internal control information disclosure played; then, in this chapter, data statistics and form a detailed description and analysis of the situation of information disclosure of internal control in China in2012; finally, the analysis and comparison of data as the basis of internal control information the disclosure and audit opinions are inferred.Chapter5Empirical AnalysisThis chapter is divided into two parts, including the research design and empirical results. In the part of the study design:the first section presents three assumptions of this article, including the disclosure of internal control information disclosure level, whether internal control defects and whether the association between corporate disclosure of internal control audit report and audit opinions; the second section is about the research on variable selection, this section of research the type of audit opinion in the study were classified and the definition, as the explained variables; secondly, based on the assumption of the study proposed three explanatory variables corresponding; thirdly, there have been some factors selected verification will has an important impact on the types of audit opinions as control variables; the third section according to the design and construct the research model about audit opinions finally, the sample data; and using the empirical research carried out instructions.In the empirical results:this chapter on the "impact" of the disclosure of internal control information for the audit opinions of the financial report of empirical tests, the study found:"the internal control information disclosure level can significantly affect the type of audit opinions of certified public accountants","whether the listing Corporation to disclose internal control defects in financial report audit significant correlation". According to the research results of this paper believes that the listing Corporation internal control disclosure has an important influence on the auditing opinions. In the process of empirical testing, this chapter uses the descriptive statistics, correlation analysis and Logistic regression analysis method, and the phenomenon was analyzed.Chapter6Conclusions and SuggestionsThis chapter is divided into three parts, including the research limitations and follow-up research prospects, conclusion, policy suggestion.The first part of this chapter, according to the article before analysis and the results of empirical research presents a summary of conclusions, points out the internal control information disclosure will have an important impact on the CPA audit opinions issued by.The second part, this chapter is based on the previous discussion and empirical analysis, combined with the actual situation of China’s current information disclosure of internal control, puts forward suggestions from three aspects. Which including regulators, the listing Corporation and the Institute of Certified Public AccountantsThe third part, firstly put forward the limitations of this study, from the choice of the above control variable selection and research object points to further improve. Thirdly, the research direction of internal control information disclosure and financial report audit opinions put forward his own understanding and further.