The Impact Of Internal Control On The Quality Of Accounting Information

The American Enron Event,Italy Parmalat Event and a series of financial fraud cases exposure,it made a huge negative impact to the capital market.In order to improve the quality of accounting information disclosure and enhance investor confidence in the market,the United States Congress and the government promulgated the famous SarbanesOxley Act in 2002.The Act obliges listed companies to provide financial reports containing internal control reports and requires their internal control reports to be audited by an independent third-party accountant.After drawing the Sarbanes-Oxley Act,the Ministry of Finance,the CSRC,the Audit Commission,the CBRC and the CIRC,the five committees jointly issued “The Basic Standards for Enterprise Internal Control”,and issued “the Guidance for the Enterprise Internal Control" in 2010.The regulatory required enterprises to build a scientific and effective internal control system to improve the level of disclosure of accounting information quality.China's economy is entering the transition period.With the economic field reform to gradually promote,the enterprise management power on the impact of the enterprise surfaced.It has always the worship of power in Chinese culture,which will lead to the formation of bad values within the enterprise.And it will inevitably affect the internal control in the enterprise.In this paper,the Power in Top Management is made to be a variable to the introduction of internal control and accounting information quality relations,and the management of state-owned enterprises to conduct a comparative study of the power.This paper collects the financial data and corporate governance data of the main board and small and medium-sized board enterprises in Shenzhen Stock Exchange from 2013 to 2015,uses the internal control quantity of Dibo to replace the internal control,and evaluates the information quality of listed companies through the Shenzhen Stock Exchange.Selecting the size of the company,the profitability,the financial leverage,the audit institution and the growth as the control variables.First,it explores the effect of internal control on the quality of accounting information.Second,with the power in TM,it examines the relationship between internal control and accounting information quality.Third,the effect of the power in TM of the state-owned enterprises on the internal control and the relationship between the quality of the accounting information is more obvious than that of the non-state-owned enterprises.Through empirical research,this paper finds that:(1)Internal control has an enhanced effect on the quality of accounting information.(2)The power in the TM will inhibit the internal control of the accounting information to enhance the quality of the role.(3)The management of state-owned enterprises on the internal control and accounting information quality of the inhibitory effect than non-state enterprises obvious.At the end of this paper,more empirical analysis of the conclusions of the enterprise and government regulators to improve the proposed recommendations.