Research About The Impact Of Internal Control Deficiencies And Rectification On Accounting Conservatism

With the occurrence of financial fraud cases at home and abroad,various reasons for financial fraud cases are discussed in depth and it is found that internal control deficiencies have a significant impact on the occurrence of financial fraud cases.So more and more scholars focus on the research of internal control deficiencies.The main goal of internal control is to ensure the efficiency and effectiveness of the company's operations,the reliability of financial reporting and compliance with applicable laws and regulations.Because of the separation of ownership and management rights of the modern enterprise,if a company exists internal control deficiencies,the management of the company will likely to cross control and engage in earnings manipulation,resulting in unsound accounting treatment,and reducing the accounting conservatism of the company.Improving the quality of accounting information plays an important role in ensuring the reliability of financial reporting.Accounting conservatism is an important dimension of accounting information quality.Therefore,the research about the impact of internal control deficiencies and rectification on accounting conservatism can reduce the occurrence of financial fraud cases and improve the quality of accounting information to ensure the reliability of financial reporting.And it is of great significance to promote the sustainable development of listed companies and the capital market.According to the study of the domestic and foreign relevant research about the impact of internal control deficiencies and rectification on accounting conservatism,this paper discusses the impact of internal control deficiencies and rectification on accounting conservatism,using the method of empirical research and literature research.First,this paper reviews the domestic and foreign literature on the impact of internal control deficiencies and the rectification on accounting conservatism in order to determine the research content,research methods,etc.Finally,this paper selects2013-2015 Shanghai A shares of listed companies as the sample and put forward the research hypothesis on the basis of theoretical analysis.In this paper,the research model is constructed according to the use of the research model.This paper makes correlation analysis,multiple linear regression analysis and robustness test using SPSS soft.This paper draws the following conclusions: Internal control deficiencies of listed companies will reduce the accounting conservatism;Non financial report internal control deficiencies than financial reporting internal control deficiencies can reduce accounting conservatism of listed companies;The rectification of internal control deficiencies will improve the accounting conservatism of listed companies.In this paper,the internal control deficiencies and internal control deficiencies rectification as an important variable is integrated into the model of accounting conservatism,resulting the enrichment and supplement of the research about the impact of internal control deficiencies and rectification on accounting conservatism.According to the research conclusion,this paper puts forward proposals of improving the internal control of listed companies to improve the accounting conservatism of listed companies,and to promote its sustainable development.Therefore,this paper has some practical significance.