| In recent years, under the background of financial fraud of listed companies at home and abroad continue to unfold, the internal control and external auditing in the earnings management of listed companies governance played an important role more and more national attention. The United States as the representative of the western countries began to develop a series of bills, in order to improve the internal control of the listing Corporation, to strengthen the supervision of the quality of financial information. China's regulators have also in the five years from 2006 to 2010 formulated and launched a number of aims to standardize and strengthen the listed company's internal control construction documents, with the formal implementation of the "basic norms of internal control" and its supporting guidelines, marking the with China's characteristics of the internal control system has been basically formed. At the same time, the shareholders hire external auditors of the company's financial accounting information audit has become a common practice at home and abroad, with a view to the external audit method to restrain the management of adulteration of financial reports, to maintain the interests of the shareholders. So, internal control and external audit as the accounting earnings information quality of the two important security mechanisms, whether it can independently and effectively play a role in the inhibition of earnings management? And both in the inhibition of earnings management is there an alternative or complementary role? This is the problem that this paper needs to focus on.Based on this, this paper uses the method of normative research and empirical research. First, through the research and analysis of the classical theory to the field of internal control, from the theoretical level demonstrated respectively internal control and external audit are on earnings management exists certain inhibitory effect and two in restraining earnings management play a complementary role, and put forward the corresponding hypothesis. Then, with reference to the existing research results, to achieve the corresponding project earnings management and real earnings management and internal control quality, external audit quality measurement and control variables of selection, and the regression model was built. Finally, select our country main board listed companies as the research sample, using its 2012- 2014 years of financial data, respectively on the inhibitory effect on earnings management of internal control and external auditing and two in restraining earnings management play a complementary role were empirically tested. At the same time, in order to eliminate the impact of contingency factors on the empirical results, this paper makes a robust test, the test results still support the empirical results of this paper.The results of the study show that:(1) internal control and external audit of the two different ways of earnings management inhibitory effect there is a big difference, specific performance for the high quality of internal control and external audit to be independent of the corresponding meter project earnings management have effective inhibition, but of real earnings management does not produce similar effects.(2) the inhibition of internal control and external audit on earnings management is complementary, but it is still not applicable to real activity earnings management. The above conclusion shows that our country listed company's internal control construction and the external audit system, do play a role in the governance mechanism of earnings management, but to want to further play of hidden strong real earnings management activities of the inhibitory effect of, also need supervision layer, listed companies and accounting firms to work together, from the market supervision, the internal control construction and external audit quality three aspects form a cohesive force, the earnings management behavior of listed companies to better inhibition. |
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