Research On The Quality And Influencing Factors Of The Internal Control Self-assessment Report Of Small And Medium-sized Listed Companies

In the 21 st century, the environment of business has been becoming more and more complex, and also the risk of business from inside and outside the enterprise has been becoming more and more violent. In order to cope with risks from the perspective of the overall, “ Enterprise Risk Management Framework”(ERM) arises at the historic moment. Internal control under the framework of ERM is standing in the enterprise strategic level analysis, assess and manage risk, and through this process to improve the efficiency of enterprise management, improve the organizational integration and full participation, make risk management well integrated into the daily management. To improve the internal control, and to enhance risk management not only become imperative, but also the managers’ inescapable responsibility. For the construction and implementation of internal control, as an investor has the right to learn. So this will result in the need of internal control information disclosure.In the United States, the disclosure of internal control information gradually transformed from voluntary disclosure into obliged disclosure. Our internal control grow later than the United States, Britain and other developed countries, so we can start with the actual situation fully absorbing the experience of other countries. After a period of non-standard, non-mandatory, selective pilot experiments, in 2008, five ministries jointly issued the "Basic Norms of Internal Control" and then also released three related supporting guidelines, which marked China also entered a new stage of mandatory disclosure. Current main board listed companies in Shanghai and Shenzhen stock markets are fully implemented, while the SME board and GEM listed companies are chosen to implement.In this paper, in order to have a general understanding of the overall disclosure of internal control information, I had a horizontal and vertical analysis of the sample data from companies in SME board. Finally found that the latter company’s management did not pay enough attention to disclosure of internal control information, coupled with laws and regulations had not yet made mandatory, which led to the disclosure of the specification, rigorous, comparability and completeness are to be strengthened. To find out the key factor in internal control information disclosure of listed companies in SME board, this paper empirically discovered that corporate governance structure did not play its due role, many of the company’s balance mechanism, supervision mechanism, incentive mechanism were so useless. The higher the profit margin, the greater the size of the company, the more standard audit opinion for the financial reporting, quality of information disclosure of internal control the better. The higher the debt ratio, the nature of state-owned enterprises, listed company irregularities in internal control information disclosure of poorer quality. The higher the asset-liability ratio, the more likely companies to disclose internal control deficiencies. And the greater the loss, stateowned enterprises, audit opinion of financial reporting more standard, the more rare companies to disclose internal control deficiencies.Through the above analysis, we have the relevant disclosure of a more comprehensive understanding, hoping to provide a reference to further improve the relevant laws and regulatory agencies and regulations, improve the information disclosure of internal control standardization, strengthen supervision, but also hope that the management of SME board listed companies can focus on internal control evaluation and disclosure to promote internal control deficiencies identified standards and rectification work carried out, in particular also improve the corporate governance structure, and more efforts to strengthen internal oversight.This paper not only studied overall disclosure quality of internal control selfassessment report of SME board listed companies, but also introduced empirical analysis of the disclosure of internal control defects, which improved the richness of research content and logical relationship.