The Impact And Influencing Process Of IT Capability On Enterprise Internal Control

Enterprise Internal control activities involving all levels of management, aspects and various business sectors. A high level of internal control helps companies significantly improve operational efficiency and effectiveness, then firms to better achieve strategic objectives. However, in recent years, many domestic and foreign listed companies financial fraud incident shows that domestic and foreign listed companies is still not standardized internal control and internal control level is not high. Therefore, it is the topic of the current domestic and international academia, government and the business community are very concerned about how to effectively enhance internal control and improve financial performance.As information technology in all aspects of business and at all levels of a wide range of in-depth application, there are more and more enterprises will not only effective application of IT as a strategic tool to enhance the competitiveness of enterprises, and many companies are trying through the effective use of various types of information systems integration and sharing of information with a variety of business-related enterprises to strengthen internal control, at last, continuously improve the efficiency and effectiveness of internal control. So, this paper integrates some different theory including disciplines of internal control and information management, using normative and empirical analysis of the research methods, exploratory study on IT capability whether and how it affects the internal control objectives. The main contents include three parts. First, in order to answer the question about IT ability affect the internal control objectives, we use matched sample comparison group method, empirical Study of IT capability for internal control objectives. Second, we build a framework of path analysis, and reveals elements of internal control and risk control point as a key role in the application of information technology to enhance enterprise internal control. Third, based on the Baosteel, we using the case study method, empirical analysis Baosteel how to cultivate strong IT ability to achieve the internal control objectives, which further demonstrates the effectiveness of the proposed action to build a path analysis framework.The results, thus, suggest that having excellent IT ability of enterprises show better than its competitors internal control performance on improve financial reporting and related information authenticity and integrity, improve operational efficiency and effectiveness and enhance corporate value, etc. The study also found that, it mainly through simplification and standardization of business processes, providing timely, complete and accurate information about the business to achieve internal control objectives. Summary, we study the relationship between IT capability and Internal Control with three research methods. On the one hand, it provides a new research perspective for theoretical research of internal controls, on the other hand, it provides new ideas and suggestions for Chinese enterprises to improve internal control standards and achieve strategic objectives.