The Research Of Internal Control Audit In Chinese Listing Companies

At the beginning of the 21 st century,a series of financial fraud events such as Enron,WorldCom event,caused a sensation in the capital market,severely shaken investor confidence in the capital markets,although the cause of such financial fraud cases have a variety of complex and profound reasons,but the lack of internal control and even failure has a direct relationship.Internal control as the important part of corporate governance and management,not only can reasonably ensure the reliability of financial statements,efficiency of enterprise management and enhance the abidance of laws,but also for keeping The confidence of investors,to ensure that the operation of the market economy has important role.The United States to regain the confidence of investors in the securities market,and to restore market order,in 2002,American congress promulgated the Sarbanes-Oxley Act,Demanding that the internal control of the enterprise must be audited by certified public accountants,and at the same time requires management disclosed the internal control audit report with periodical reports.China issued the basic norms of internal control united by the five ministries in 2008,it indicates that China is also about to carry out the internal control audit services.Through the internal control audit can acquaintance the business situation,if there is important weak link,and feedback the information.The development of the new business of internal control audit will have a promotion in enhancing financial information quality,Therefore,it is of practical significance to study of internal control audit.This text demonstrate internal control audit theoretical based on the research of domestic and foreign literature of internal control audit and the research of the development process of internal control audit.Clearly focus on internal control audit process and the reasonable integration part of internal control audit and financial statements audit.In this paper,the results of theoretical research are verified by the method of normative research and case study,the structure is as follows:(1)first,the internal control audit theory and practice are summarized,the paper expounds the background and development stages of internal control audit,made clear that the internal control audit is independent auditors to audit the internal control design and operation of the enterprise in a specific reference date.The objective is to obtain reasonable assurance of the validity of the internal control design and operation of the reference date.(2)by the process of H accounting firm audit Tianjin magnetic company of internal control to carry on the analysis,in accordance with the principle of risk oriented top-down method.First,make a preliminary audit plan,determine the materiality level for 1.77 million RMB.then take a top-down approach to acquaintance with the whole enterprise audit risk and enterprise level risk,identify key account and related determination: inventory,accounts payable,operating cost,accounts receivable,accounts receivable in advance etc.Identify high-risk areas and focus on areas of concern.to Tianjin magnetic sales and receivables as an example through the walk through testing and control test,Found that Tianjin magnetic did not deliver goods but confirmed the revenue,none confirmed cost.Finally evaluate and identify control defects: there has subsidiary out of accounts,no effective execution the monthly account checking system,has not been established the investment business accounting information system,lack of effective sales accounting control system and did not establish the final financial reporting process control system.(3)in view of the analysis of the case,three basic conclusions: first,the auditors keep the independence;Second,take a top-down audit approach is easy to grasp the risk;Three,two audit integration,reduce the audit risk and improve audit quality.