Research On The Relationship Of Internal Control And Accounting Information Quality

Internal control is implemented based on the corporate itself and supervises the accounting information quality by controlling its generation source. Currently, the internal control of listed companies faces the situation of inadequate design and inefficient implementation, which led to accounting information distortion and repeated fraud cases. It will reduce the decision-making effectiveness and weaken investors’ confidence. Therefore, it seems to be necessary to analyze the relevance of internal control and accounting information quality. It not only gains extensive attention at home and abroad, but also provides the effective way of internal control practice for listed companies.Based on the existing research results, this paper firstly gives the content overview of accounting information and internal control concept and brings in the relevant basis theories. Secondly, it explains the internal control elements, elaborates the principles how internal control components affect accounting level and builds the quality index based on five components. After that, it builds internal control disclosure index according to the current internal control situation of our listed companies. In the end, it tests and verifies the correlation of both variables through empirical analysis and proposes measures to enhance accounting information quality in internal control perspective. In this case, this paper puts forward the reference for listed company to revise internal control and accounting information disclosure to improve operation efficiency.