Research On The Internal Control Of Financial Reporting And Financial Restatement TEDA Shares

Financial statements as the record and reflect the financial condition of a company, the capacity of financial accounting information can not only scientific and effective record operating earnings and other information, to manage the company to provide data measurement tool, for investors to make investment decisions provide a strong reference. It is particularly important to increasing contribution to the national economy in the capital market prosperity today, for investors, including stakeholders transfer market company information the financial report.Financial information is a consequence of the quality of financial information. Analysis in recent years the capital market financial restatement in the event of multiple reasons, from the company itself speaking is because managers subjective motivation of earnings management. On the other hand is the imperfect corporate governance; from the market, because regulators of information disclosure regulation is not in place, such as laws and regulations lack operability and the punishment is weak and so on. Financial restatements frequently reduced the market information disclosure quality will not only influencing the decision of investor harm the interests of investors, but also hinders the normal operation of the capital market. Financial restatements and the quality of financial reporting is bound by a common cause, and to ensure that the financial statements fairly reflect the entity’s financial position and operating conditions is the responsibility of the management, indicating that the close relationship between financial restatement and management layer, management layer is responsible for design, implementation and maintenance of the necessary internal control in order to make financial statements do not exist because of the material misstatement due to fraud or error. The financial report is a manifestation of the implementation of the outcome of the internal control and financial reporting information is true and reliable, the key lies in the internal control, strong or weak, execution is effective or not, the company has a sound and effective internal control system, in order to ensure reliable financial reporting of the fair.For financial restatements system construction, China financial restatements relevant system established late, and now there are still many immature place; for the study of financial restatements, foreign countries started early and related research, literature rich, our research in the field of financial restatements is in its infancy, but with increasingly frequent capital market financial restatements phenomenon, Research of financial restatements is gradually deepening. Now the financial restatement of the focus is on the research of market reaction after financial restatements, influencing factors and restatement, internal control and financial restatement of research is rarely seen. So it is a large research space.This study will under the background of China’s capital market by TEDA shares of financial restatements case study, motivation behind the deep level excavation of financial restatements, and the relationship with the financial report internal control research, analysis of financial restatements reflects internal control defects and other problems, other company can more comprehensive and perfect the internal control, the protection of investors, promote the information of Listed Companies in China improve the quality of disclosure.