Research On Internal Control Environment And Accounting Information Quality

The quality of a company's accounting information lies not only largely on its external accounting requirements,but also closely upon its own internal circumstance.There is no denying fact that accounting information quality has long been one of the most practical and significant problems confronting most countries across the globe.In recent years,China's Treasury Department has adopted a series of significant measures to ensure the accounting information being presented authentically,timely and accurately.These measures tackle a wide range of issues including strengthening the internal control mechanism.Generally speaking,these efforts to improve the accounting information quality have yielded relatively satisfactory results.However,the root causes dampening the improvement of accounting information have never been tackled seriously and completely.The issue of distorted accounting information is still so severe that we cannot just neglect it.Clearly,this is a sustained threat to the long-term economic growth.How to get rid of accounting fraud and improve accounting information has become a pressing social concern which cannot afford to be overlooked.From five different perspectives,this essay conducts a comprehensive analysis on the potential factors affecting accounting information.The topics contained in this paper are abundant and complete ranging from internal control of corporate governance to the company's human resource policy.The main part of this paper consists of five sections.First,there presents a general review into the basic theory of internal control environment.Meanwhile,the topics including research background,methodology adopted and creative points in this paper are discussed in details.Second,the general academic papers regarding accounting information quality are briefly discussed.The impact of elements of internal control environment on accounting information is analyzed in details.Third,from the perspective of internal control environment,the paper studies how the accounting information is affected by the internal factors.Fourth,taking the financial situation of A Consulting Firm for instance,we study its current performance of accounting information from the perspective of internal control environment.Fifth,aiming at improving its internal control environment,we make certain effective suggestions to A Consulting Firm.The creative points in the paper are like below.To establish a better internal control mechanism and rely on internal auditing,we systematically study the impacts of various factors on accounting information.Meanwhile,based on the example A Consulting Firm,we figured out the real motivation causing the internal control to influence the accounting information.Finally,we proposed a series of effective policy suggestions to improve the accounting information.